Point of Interest
Are you considering a move to Louisana? You may be able to save a ton on your cost of living thanks to low property taxes, housing prices, interest rates and ownership costs, all of which are attractive elements of buying a home in Louisiana.
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|Term||Rate||Rate Last Week|
|30-year fixed jumbo||4.75%||4.75%|
When it comes to getting a mortgage or refinancing a home in the state of Louisiana, the interest rates are one important piece of the puzzle. The interest rates on mortgage loans and refinances are currently slightly lower than the national average across most lending products.
If you’re new to the state of Louisiana, you will want to look at other metrics, too. The property taxes in the state are some of the lowest in the country, and the housing prices and cost of ownership are also much lower than the national average.
Getting a mortgage in Louisiana
When you start looking at the costs of getting a mortgage and living in Louisiana, you’ll see a lot of average and middle of the road statistics, along with some positives. Is this a good or a bad thing? It depends on your current situation.
First, the median home price in the state is almost $50,000 lower than the national average and the median monthly ownership cost is almost $300 lower than the national average. The average mortgage rates are also slightly below the national average. All of these three metrics together create a favorable buying climate. Other factirs to consider are that the state ranks 20th in the cost of living and 17th in most expensive average homeowner’s insurance.
- Median home price: $157,800
- Average 30-year fixed rate: 3.6%
- Median monthly ownership costs: $1,267
- Homeownership rate: 65.3%
*Rates and data as of May 5, 2020. Assuming 3.72% APR national average on a 30-year fixed-rate mortgage.
Louisiana state mortgage rate trends
In May of 2018, mortgage and refinance rates in the state of Louisiana were somewhat higher than they were in many other states. The rates have mirrored the ups and downs of the national market since that time, and are currently close to the national averages.
Interest rates on 30-year fixed-rate loans were about 4.3% in May of 2018. Rates rose slightly in the months following May 2018 and started to slide in late 2018 and early 2019. Rates continued to drop until a short-lived spike in early 2020. Rates have been falling over the last few months across most lending products. Other fixed-rate term mortgages, refinances and ARMs followed suit.
Louisiana state current mortgage rates
Mortgage rates across Louisiana are currently close to the national average, leaning toward the low side. Interest rates on 30-year fixed-rate loans average about 3.6%, just slightly below the national average of 3.72%. Interest rates on 20-year mortgage rates are about 3.5% currently, and 15-year rates are in the high 2% range.
Refinance rates on 30- and 20-year fixed-rate loans are slightly lower than the interest rates on conventional mortgages, and 15-year refinance rates are similar to the current conventional loan interest rates. Interest rates on 7/1 and 5/1 ARMs are currently in the low 3% range for both purchase and refinance. Much like the rest of the country, interest rates on 3/1 ARMs have been consistent over the past few months, with rates just below the 4.5% mark in Louisiana.
Most and least expensive places to live in Louisiana
Least expensive places to live in Louisiana
1. New Iberia, LA — When it comes to inexpensive living, New Iberia takes the cake in the state. The median value of a house in New Iberia is only $106,900. The median gross rent from 2014-2018 was $750, and the cost of homeownership in New Iberia is exactly $500 lower than the national average.
2. Sulphur, LA — With the median cost of homes clocking in at about $20,000 less than the median state figure and over $60,000 less than the national average, Sulphur earns the title of one of the least expensive cities to live in. The cost of owning a home in the area is also over $500 less than the national average.
3. Shreveport, LA — People buying in Shreveport can expect savings across all areas that make up the cost of living. The biggest savings are on housing, with a median home price of $290,786 in Sulpher and a median rent of $910.91.
4. West Monroe, LA — West Monroe’s cost of living index averages about 7% below the national average. The biggest break comes with the cost of housing, which is 17% below the national average. The median home price in West Monroe is $288,704, and the median rent is $904.38.
5. Lake Charles, LA — At 5% below the national average for cost of living, the city of Lake Charles is one of the least expensive spots in the state. You can expect to see the biggest savings on utilities, with the average energy bill at $150.39. The median home price in the state is $348,388 and the median rent is $1,091.
Most expensive places to live in Louisiana
1. Oak Hills Place, LA — The median value of a home in Oak Hills Place as of the last Census was $331,600. The cost of owning a home in the area is $1,733, which is almost $200 higher than the national monthly average. In a state where the average housing costs are low, the cost of buying a house in Oak Hills Place, a suburb of Baton Rouge, is quite high.
2. Prairieville, LA — The cost of housing in Prairieville is 9% higher than the national average, making it one of the more pricey areas in Louisiana to live in. The median home price in Prairieville is currently $376,588 and the median rent in the city is $1,180.
3. Zachary, LA — According to the PayScale cost of living index, Zachary is 2% higher than the national average, and housing alone is 4% higher than the national average. The median home price is $361,457, and renters in the area should expect to see average rent prices of $1,132.
4. Inniswold, LA — The city of Inniswold is another area in Louisiana with high housing costs. The median value of a home in the city of Inniswold is $282,700. If you are renting, expect to pay about $1,027 on average in monthly rent.
5. Shenandoah, LA — Another expensive place to live in the state of Lousiana is Shenandoah. The median gross rent in the area is $1,129, and the median value of a home in the area is just over a quarter of a million dollars — much higher than the median numbers for the state.
Louisiana state mortgage resources and intricacies
Two great resources for homebuyers in Louisiana are the Louisiana Housing Corporation— a state-run website — and the HUD website for the state of Louisiana. By using these websites and working with a trained and licensed mortgage broker or realtor in the state, you can set yourself up for success. These resources can help walk you through the intricacies of the mortgage application process, the refinancing process or the home buying process.
There’s also good news when it comes to property taxes in the state of Louisiana. With the state property tax rates at 0.18%, Louisiana has some of the lowest property taxes in the entire country.
The final word
Buying a home down on (or near) the bayou in Louisiana may be a wise decision, but it all depends on your financial situation and future goals. With Louisiana’s slightly lower mortgage rates than the national average, the third-lowest property taxes in the nation and lower home costs than the national average, Louisiana may offer some great deals compared to where you’re coming from.