Compare different loan terms using your home price of $350,000 with $70,000 down at 6.8%.
15-Year Fixed
$2,401/mo
Total interest: $152,141
Total cost: $432,141
Save $221,646 vs 30-year
20-Year Fixed
$2,088/mo
Total interest: $221,025
Total cost: $501,025
Save $152,762 vs 30-year
30-Year Fixed (Current)
$1,816/mo
Total interest: $373,787
Total cost: $653,787
Lowest monthly payment
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Professional Simulator
Complete financial model: closing costs breakdown, rent vs buy, inflation-adjusted returns, true cost of ownership
years
%
%
%
%
10-Year Net Gain/Loss
-$173,685
After selling in year 10 at $493,710
Total Paid Over Hold Period
$398,929
Down + closing + all payments
Home Value at Sale
$493,710
3.5%/ yr appreciation
Selling Costs
$29,623
6% of sale price
Net Sale Proceeds
$225,244
After mortgage payoff + selling costs
Real Interest Rate
4.25%
Nominal 6.8% - inflation 2.5%
Real Monthly Payment
$1,254
Today's dollars (mid-loan)
State Property Tax
$5,600
TX rate: 1.6%
True Monthly Cost
$2,499
PITI + HOA + maintenance
Buying a Home in Louisiana
Louisiana offers affordable home prices with an average of $205,000, but buyers must factor in the state's notably high homeowners insurance costs. The New Orleans metro is the state's most dynamic and historically significant housing market, with a mix of historic Creole cottages, shotgun houses, and newer suburban construction. Baton Rouge, the state capital, is home to Louisiana State University and a major petrochemical industry, creating strong and stable demand for housing.
Louisiana's homestead exemption is one of the most generous in the country: the first $75,000 of a primary residence's assessed value is exempt from property taxes. Combined with the already low 0.53% effective tax rate, owner-occupants can enjoy remarkably low property tax bills. However, this advantage is offset by insurance costs — Louisiana consistently ranks among the most expensive states for homeowners insurance due to hurricane exposure and flood risk.
Flood insurance is a critical consideration for Louisiana buyers. Large portions of the state lie in or near FEMA-designated flood zones, and federally backed mortgages in high-risk areas require flood insurance. Buyers should always request a flood zone determination before making an offer, as flood insurance can add hundreds to thousands of dollars to annual carrying costs.
Key Housing Facts for Louisiana
Average home price: $205,000
Average effective property tax rate: 0.53%
Average homeowners insurance: $2,600/year
Homestead exemption: first $75,000 of primary residence value exempt
Flood insurance often required — check FEMA flood maps
Most active markets: New Orleans, Baton Rouge, Shreveport, Lafayette
Frequently Asked Questions
Louisiana's average effective property tax rate is approximately 0.53%, among the lowest in the South. On a $205,000 home, you'd pay roughly $1,087 per year in property taxes. Louisiana's homestead exemption exempts the first $75,000 of a primary residence's value from property taxes, providing significant savings for owner-occupants.
Louisiana averages around $2,600 per year for homeowners insurance — one of the highest rates in the country — due to hurricane and flood risk. Many properties near the Gulf Coast, in coastal parishes, and along bayou areas require separate flood insurance through FEMA's National Flood Insurance Program (NFIP), which adds additional cost. Buyers should obtain flood zone determinations before purchasing.
Louisiana Housing Corporation (LHC) offers the Market Rate GNMA and Conventional programs with competitive interest rates and the Soft Second Mortgage program providing up to $35,000 in down payment and closing cost assistance. The LHC also offers the MRB Home and MRB Assisted programs specifically for lower-income first-time buyers in targeted areas.
Whether flood insurance is required depends on the property's FEMA flood zone designation. Properties in high-risk zones (Special Flood Hazard Areas) with a federally backed mortgage are required to carry flood insurance. Even outside mandatory zones, flood insurance is strongly recommended in Louisiana. Contact your lender and check the FEMA Flood Map Service Center to determine your property's flood zone before closing.