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Buying a home in Louisiana
According to Zillow, the typical home value in Louisiana is lower than the typical US home price of $356,026. The typical home value in Louisiana is $216,350, and home values have increased 12.4% over the past year.
Historic mortgage rates for Louisiana
By looking at the average mortgage rates in Louisiana since 2010, you can see trends for 30-year fixed mortgages, 15-year fixed mortgages, and 7/1 adjustable mortgages:
Seeing how today’s rates compare to historic Louisiana mortgage rates may help you decide whether you’d be getting a good deal by getting a mortgage or refinancing now.
Mortgage calculator
To see how today’s mortgage rates might impact monthly payments, you should try our free mortgage calculator. Our mortgage calculator lets you change the rate or term length so you can see how that will affect future payments.
The “More details” button highlights different ways to save.
Louisiana first-time homebuyer programs
The Louisiana Housing Corporation has several types of financial assistance if you get a mortgage from a participating lender:
Home | MRB Program: If you earn a low-to-moderate income, you can get a discount on mortgage insurance and a loan of 4% to 9% of your mortgage amount as down payment/closing cost assistance.Mortgage Revenue Bond Assisted Program: You may receive a loan for up to 4% of your mortgage amount for down payment and closing cost assistance, and you could pay reduced mortgage insurance costs.Market Rate GNMA Program: If you’re getting a government-backed mortgage, you can get a loan for up to 4% of your mortgage amount, and you won’t have to pay origination fees.Delta 100 Program: If you live in certain parishes, you can receive a mortgage at a 2% fixed rate, and get up to 3% of your mortgage amount toward closing costs.Mortgage Credit Certificate Program: Claim 40% of the interest paid on your mortgage on your federal taxes, up to $2,000 per year.Resilience Soft Second Program: This program is meant to help buyers who can’t afford a mortgage to cover the full cost of a home. You’ll receive a loan of up to 20% of the home purchase price, up to $55,000, and the government will forgive the loan if you live in the home for at least 10 years. You may also get an additional $5,000 toward closing costs.Direct Homebuyer Soft Second Mortgage Assistance Program: If you’re buying a home in New Orleans, you may be eligible for this program through the local government. You’ll get a soft second mortgage for up to $45,000, plus $5,000 for closing costs.First-Time Homebuyers Assistance Program: In Kenner, you can get up to $50,000 as a soft second mortgage through this program. Depending on how much you borrow, the local government will forgive your loan if you live in the home for five to 15 years.Federal Housing Administration mortgage: You can get a down payment of 3.5% with a credit score of at least 580, or get a mortgage with a credit score between 500 and 580 with 10% down using this loan, which is also called an FHA loan. United States Department of Agriculture mortgage: These loans, also called USDA loans, can be useful if you are a low-to-moderate income borrower looking to buy a home in a rural or suburban area.Veterans Affairs mortgage: These mortgages, also called VA loans, are for active-service military members or veterans, or spouses of members who have died and can provide lower interest rates than conventional mortgages.
Refinancing your mortgage in Louisiana
Mortgage refinance rates are at all-time lows right now, so it could be a good idea to switch your current mortgage for one with a better interest rate — especially if the new rate would be significantly lower.
You may decide to refinance with the same lender that gave you your initial mortgage, but it’s not always the best idea. A different lender may offer you a better deal the second time around. Shop around for a company that will offer the best interest rate and charge relatively low fees.
How to get a low interest rate on your mortgage
Here are some tips for landing a good interest rate on your mortgage:
Save more for a down payment. With a conventional loan, you may be able to put down as little as 3%. But lenders reward a higher down payment with a better interest rate. Mortgage rates should stay low for a while, so you may have time to save a bigger down payment.Increase your credit score. Many lenders require a minimum credit score of 620 to receive a mortgage. But you can land a better interest rate with a higher score. The most important factor for boosting your score is to pay all your bills on time.Lower your debt-to-income ratio. Your DTI is the amount you pay toward debts each month, divided by your gross monthly income. Most lenders want to see a DTI of 36% or less for a conventional mortgage, but a lower DTI can result in a lower rate. To improve your DTI, pay down debts or consider opportunities to increase your income.Choose a federally backed mortgage. If you’re eligible, you might consider a USDA loan (for low-to-moderate income borrowers buying in a rural area), a VA loan (for military members and veterans), or an FHA loan (not designated for any particular group). These loans typically come with lower interest rates than conventional mortgages. Additionally, you won’t need a down payment for USDA or VA loans.
Improving your financial situation and choosing the right type of mortgage for your needs can help you get the best interest rate possible.
Additional Louisiana mortgage resources
Learn more about Louisiana first-time homebuyer programs in 2022Check Louisiana mortgage borrowing limits for 2022 by county
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