Mortgage Payment in Louisiana

Market Overview: Louisiana Housing Affordable

Louisiana ranks as a entry-level / affordable housing market, with a median home price of $201,100. The state's effective property tax rate of 0.50% is lower than the national average of 1.00%, and annual homeowners insurance averaging $4,135 falls above the US median of $2,201.

These three factors — price level, tax burden, and insurance costs — combine to shape the true monthly cost of homeownership in Louisiana. Below we break down a realistic purchase scenario using state-specific data.

🏡 Purchase Example: Buying a $201,100 Home in Louisiana

Using the state's median home price of $201,100, a 20% down payment, and a 6.5% 30-year fixed rate, here is the complete picture of what it costs to buy in Louisiana:

Cost Component	Amount
Home Price	$201,100
Down Payment (20%)	$40,220
Loan Amount	$160,880
Estimated Closing Costs (3.5%)	$7,039
Total Cash Needed at Closing	$47,259

Monthly Payment (20% Down)

Item	Monthly
Principal & Interest	$1,017
Property Taxes (0.50%)	$84
Homeowners Insurance	$345
PMI (not needed at 20% down)	$0
Total Monthly Payment	$1,445

Annual income needed (28% DTI): $62,000/yr

PMI Scenario: What If You Put Only 10% Down?

With a 10% down payment ($20,110), you'd have a loan of $180,990 and would need to pay Private Mortgage Insurance (PMI) at roughly 0.7% of the loan annually:

Item	10% Down	20% Down (savings)
Principal & Interest	$1,144	$1,017
Monthly PMI	$106	$0
Total PITI+PMI	$1,678	$1,445

The lower down payment costs you an extra $233/month (P&I + PMI). You would need $72,000/yr to qualify under the 28% DTI rule. PMI can typically be canceled once you reach 20% equity.

First-year interest: In year one, $10,404 of your payments go to interest alone. Over the full 30-year term, you'll pay $205,194 in total interest.

💰 State-Specific Cost Notes for Louisiana

Property taxes in Louisiana are relatively low at 0.50%, costing about $1,006/year ($84/month) on the median home. This is one area where Louisiana offers a clear cost advantage.

Homeowners insurance in Louisiana is notably expensive — $4,135/year. This is likely due to exposure to severe weather patterns. It adds $345/month to your housing costs.

Closing costs in a entry-level / affordable market like Louisiana typically run 2%–4% of the purchase price — roughly $7,039 on a $201,100 home. This includes loan origination, appraisal, title insurance, escrow fees, and prepaid taxes/insurance.

Monthly Payment on a $201,100 Home in Louisiana

With a standard 20% down payment ($160,880 loan) and a 6.5% interest rate on a 30-year fixed-rate mortgage, your estimated total monthly payment comes to $1,445.

Monthly Payment Breakdown (PITI)

Component	Monthly Cost	Annual Cost
Principal & Interest	$1,017	$12,204
Property Taxes (0.50% est.)	$84	$1,008
Home Insurance	$345	$4,140
Total Monthly Payment	$1,445	$17,340

Income Required in Louisiana

Using the standard 28% front-end DTI rule, you'd need a gross annual income of approximately $62,000 to comfortably afford the median-priced home in Louisiana with 20% down at 6.5%.

How Interest Shapes Your Payments

In your first year, approximately $10,404 goes toward interest alone. Over the full 30-year term, you'll pay a total of $205,194 in interest.

Amortization Schedule — First 10 Years

* Full 30-year amortization available in our interactive calculator.

❓ Frequently Asked Questions — Buying a Home in Louisiana

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