Louisiana mortgage calculator

What Louisiana actually costs a homeowner

Low rate, but among the highest insurance costs in the country, and parishes exempt the first slice of homestead value entirely.

On the state median home value of $198,300, the property tax bill works out at roughly $1,091 a year, or $91 a month before anything else. That is below the national effective rate of 0.86% — 0.6 times the US average.

Insurance is the other half of the escrow payment. At about $6,100 a year, Louisiana sits above the national average of roughly $2,400. Together, tax and insurance add around $599 a month to the loan payment on a median-priced home here.

Why your bill will differ

The figure above is a state average, and property tax is set locally. Two houses of the same value in different counties of Louisiana can carry bills that differ by thousands. Check your county assessor before treating any estimate as final, and check whether a homestead exemption applies to you — in most states it does, and in several it is substantial.

A low rate, which is not the same as a low bill

At 0.55% Louisiana has one of the lowest effective rates in the country. Whether that translates into a small bill depends entirely on value: the state median of $198,300 produces about $1,091 a year, but the same rate on a $396,600 home is $2,181. Rate rankings flatter states with expensive housing.

Insurance is the bigger problem

At roughly $6,100 a year, homeowners insurance in Louisiana costs more than the property tax bill on a median home. It is also the volatile half: tax assessments move on a schedule, premiums move after a bad season. Budget for renewal increases rather than treating today’s quote as fixed, and get a quote on the specific address before you are under contract — carrier appetite varies street by street here.

Insurance costs more than the tax

On a median-priced home in Louisiana the insurance premium of about $6,100 exceeds the $1,091 property tax bill by 459%. That inverts the usual advice: shopping carriers is worth more here than appealing an assessment, and a claims-free discount is worth more than a homestead exemption.

Stepping up from the median

At $300,000 — about half again the Louisiana median — the annual tax becomes $1,650 and the escrow portion of the payment rises to roughly $646 a month. With 20% down at 6.5% over thirty years, the all-in payment is about $2,163.

Low values, and what that does to fees

With a median home value of $198,300, fixed closing costs weigh more heavily. An $1,800 appraisal-and-title package is 0.9% of a median purchase here against roughly 0.5% in the most expensive states, so shopping the fee sheet matters as much as shopping the rate.

Comparison with neighbouring states