Louisiana offers very low home prices — with a statewide median around $207,000 — and a low property tax rate of 0.56%. However, the state has one of the highest homeowners insurance costs in the country at nearly $6,000 per year due to repeated hurricane damage and an unstable insurance market. Buyers must factor this into their monthly budget calculations. New Orleans, Baton Rouge, and Lafayette are the primary markets, each with distinct economic and cultural profiles.
Calculate Your Monthly Payment
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Select a program to apply FHA/VA/USDA rules.
Funding fee is often financed into the loan.
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20.0% of home price
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Used to estimate potential Year‑2 escrow shock if taxes reset after purchase.
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Used for Conventional PMI estimates and FHA minimum down rules
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Extra payments reduce balance faster and can end PMI sooner.
Total Monthly Payment
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Principal & Interest • Tax • Insurance • PMI • HOA
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HOA
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Principal & Interest
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Year‑2 Payment Shock (Property Tax Reassessment)
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Year‑2 estimate
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Note: This is an estimate. Tax timing, exemptions, and escrow rules vary by county and lender. Always verify with your county assessor and your lender’s escrow analysis.
Extra Payment Savings
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Disclaimer: Results shown are estimates for educational purposes only and do not constitute financial, tax, legal, or investment advice. Actual payments vary based on lender, credit score, loan type, and local assessments. Consult a licensed mortgage professional for your specific situation.
Louisiana Mortgage Calculator Guide
Buying a home in Louisiana requires understanding local costs. The median home price in the state sits around $207,000, which means your down payment and loan amount will heavily dictate your monthly expenses. Because Louisiana has an average property tax rate of 0.56%, factoring this into your monthly mortgage payment is essential for an accurate budget.
Beyond principal and interest, homeowners insurance in Louisiana averages $5,986 per year. Local weather risks and property age can push this number higher. By using our pre-loaded local averages, you get a realistic view of your true housing costs rather than just a basic principal calculation.
If you put down less than 20%, you will also need to pay Private Mortgage Insurance (PMI). Adjust the down payment field above to see exactly how your PMI drops off once you reach that 20% equity threshold in Louisiana.
Louisiana's average property tax rate of 0.56% is well below the national average of 1.07%, making it one of the lower property tax states. The state offers a homestead exemption that exempts the first $75,000 of a primary residence's assessed value from property taxes — a significant benefit that effectively eliminates property taxes for many lower-value homes. On a $207,000 home with the homestead exemption applied, many Louisiana homeowners pay very little in annual property tax. However, the state's high homeowners insurance costs — averaging near $6,000 per year — significantly increase total housing costs.
Frequently Asked Questions
Louisiana has experienced repeated severe hurricanes — including Katrina (2005), Laura (2020), and Ida (2021) — that generated massive insurance losses. This has caused many national insurers to withdraw from Louisiana, reducing competition and driving up rates. Average annual homeowners insurance in Louisiana is approximately $5,986 — the second highest in the country. This is the most critical cost variable for Louisiana homebuyers to calculate.
Louisiana's homestead exemption is one of the most generous in the country. It exempts the first $75,000 of a primary residence's assessed value from all parish property taxes. For homes worth $75,000 or less, this can eliminate property taxes entirely. For a $207,000 home, the effective taxable value is reduced to $132,000, substantially lowering annual property tax bills.
The Louisiana Housing Corporation (LHC) offers the Soft Second Program providing down payment and closing cost assistance as a forgivable second mortgage, the Mortgage Revenue Bond Program with below-market interest rates, and the Market Rate GNMA Program. LHC programs are available through approved lenders statewide.
Louisiana's statewide median home price is approximately $207,000, making it one of the more affordable states. New Orleans averages around $295,000, Baton Rouge near $235,000, and Lafayette approximately $215,000. Despite low home prices, high insurance costs significantly increase total monthly ownership costs.
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