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Mortgage rates in Louisiana

Rates that historically follow the national average.

Updated

Fact checked

Mortgage rates during the coronavirus

As mortgage rates fall to record lows in the wake of COVID-19, our partners are seeing an increase in demand for loans and refinancing. As they work through this influx of applications, you may see rates that are higher than expected — or no rates at all. We recommend comparing offers from multiple lenders to ensure you're getting the best deal possible.

Compare mortgage lenders in Louisiana

With a full selection of mortgage products to choose from and 30-year loans averaging 4.762%, Louisiana borrowers can expect rates to follow the national average into 2020.

How much do Louisiana rates vary?

Average 30-year mortgage rates in Louisiana ranged from 4.651% to 4.853% in 2018. Many factors contribute to determining your interest rate. For example, if you choose a conventional loan, it typically has a higher interest rate than a government-insured VA loan, but fewer borrower and property constraints.

2018 average rates in Louisiana by loan type

Loan type15-year average rate30-year average rate
Conventional4.749%4.816%
FHA4.342%4.853%
VA3.910%4.651%
USDAN/A4.727%

Based on data from ffiec.cfpb.gov.

A slight difference in interest can mean a savings over the life of the loan. For instance, let’s say you borrow $175,000 for a conventional mortgage with a 30-year term. At a 4.816% rate, you could pay about $919 a month, excluding taxes, fees and other costs specific to your loan.

But if you qualify for a VA loan at the average 4.651% rate, your monthly payment could be slightly lower at $902. Just $17.39 each month could save you $6,259 over the life of the loan.

Louisiana mortgage rates should hold steady, slightly below the 4% mark.
Bankrate’s chief financial analyst, Greg McBride, predicts national rates to average around 4% in 2020. Nationwide housing agencies expect rates to average about 3.7%. Since Louisiana mortgage rates have historically followed the national average, borrowers can expect to see rates at or just below the 4% mark.

Compare mortgage rates throughout Louisiana

Average Louisiana mortgage rates tend to follow the rest of the country. But there can be slight differences in rates depending on where the home is located. Home prices can also fluctuate depending on the neighborhood.
Even if you have the same loan balance as someone in the next city or neighborhood, the difference in the interest rate can significantly increase how much you pay monthly. Finding out the average mortgage rates for the area you want to live in can help you decide how much home you can afford.

We sifted through the data from the Home Mortgage Disclosure Act to provide a general picture of what you might pay on the average 30-year fixed-rate mortgage in metropolitan areas of Louisiana. Rates and amounts don’t account for taxes or other mortgage-specific charges.

Metropolitan statistical areaAverage mortgage rateMedian loan amountEstimated monthly cost
Alexandria4.811%$155,000$810
Baton Rouge4.800%$195,000$1,020
Hammond4.784%$175,000$920
Houma-Thibodaux4.720%$165,000$860
Lafayette4.760%$175,000$910
Lake Charles4.824%$185,000$970
Monroe4.744%$165,000$860
New Orleans-Metairie4.790%$195,000$1,029
Shreveport-Bossier City4.824%$175,000$920

Based on data from ffiec.cfpb.gov.

How to get the best mortgage rate in Louisiana

Do some research and build your credit to ensure you get the best rate possible.

  1. Look at different loan products. Lenders often offer several different kinds of loans, all with various features. Look at all options to identify the best choice for your needs.
  2. Nail down your credit. Lenders love borrowers with good credit. If you can, work toward paying off existing debt and increasing your credit score.
  3. Calculate closing costs. Closing costs in Louisiana average 3.41% of the home purchase price, which can add to the total cost. Compare closing costs when selecting your lender.

Historical mortgage interest rates in Louisiana

Bottom line

Lenders set their own rates. Even though Louisiana rates tend to follow the national average, you should look at each lender individually. Give yourself the best shot of getting a competitive rate by comparing mortgages and lenders.

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