Louisiana Mortgage and Refinance Rates

Current mortgage rates in Louisiana

As of Tuesday, November 5, 2024, current mortgage interest rates In Louisiana are 6.94% for a 30-year fixed mortgage and 6.22% for a 15-year fixed mortgage. The homeownership rate in New Hampshire is about 71 percent, according to Census estimates, and median home sale prices have been steadily creeping upward in recent years, the New Hampshire Housing Finance Authority reports. Mortgages in New Hampshire are offered by private lenders as well as the state’s housing authority, which runs a variety of programs designed to make homeownership more accessible.

Refinance rates in Louisiana

Like purchase-loan rates, refinance rates have also been trending upward in Louisiana. If you’re considering refinancing, use Bankrate’s mortgage calculator to figure out what the monthly payments would be and determine how much you may save by resetting your mortgage.

Louisiana mortgage rate trends

While mortgage rates are difficult to predict, the current consensus is for rates to remain well above historical lows for the foreseeable future, including in Louisiana. As the Federal Reserve may cut rates this year, rates are expected to trend downward in 2024 and into 2025.

National mortgage rates by loan type

Mortgage statistics for Louisiana

Here are some statistics about mortgages and the housing market in Louisiana:

• Average home value (as of Mar. 2024): $194,308 (Zillow)
• Homeownership rate (as of Q4 2023): 68.8% (U.S. Census Bureau)
• Homes with price drops (as of Feb. 2024): 23.8% (Redfin)
• Number of homes for sale (as of Feb. 2024): 13,613 (Redfin)

Mortgage options in Louisiana

There are plenty of mortgage options in Louisiana. The most common types of loans include:

• Louisiana conventional mortgages: Rates and requirements will vary depending on the area you want to live in and your financial situation. You can compare mortgage rates to find the option that’s right for you.
• Louisiana FHA loans: Home loans backed by the Federal Housing Administration (FHA) are offered throughout the U.S. While the FHA doesn’t offer loans directly, you can find one through an FHA-approved lender in Louisiana. They are offered to first-time homebuyers, as well as repeat buyers. FHA loans are generally designed for low- to moderate-income borrowers with lower credit scores.
• Louisiana VA loans: Guaranteed by the Department of Veterans Affairs, VA loans are offered to eligible veterans and active-duty service members. While the VA doesn’t offer loans directly, you can find one through a VA-approved lender in Louisiana. They require no down payment and typically have lower interest rates than conventional mortgages.

First-time homebuyer programs in Louisiana

The Louisiana Housing Corporation (LHC) offers a diverse list of programs to help make homeownership possible for state residents, including first-time homebuyers. Some of the agency’s programs support purchases in specific regions, or parishes, of Louisiana. Others offer down payment and closing cost assistance no matter where the property is located. Many of the programs have income and purchase price limits.

• Mortgage Revenue Bond (MRB) Program: Created for first-time homebuyers whose household income is 80 percent of the area median income (AMI) or less, the Mortgage Revenue Bond (MRB) Program offers down payment and closing cost assistance, along with lower interest rates. The down payment and closing cost assistance ranges from 5 percent to 9 percent, and is based on the loan principal. Homes purchased using this program must be located in Louisiana, and buyers must have a minimum credit score of 640. There are also income and purchase price limits, which vary by region.
• Mortgage Revenue Bond Assisted Program: Not to be confused with the Mortgage Revenue Bond Program, the Mortgage Revenue Bond Assisted Program also helps first-time homebuyers who may not have enough money for a down payment or closing costs. However, unlike the Mortgage Revenue Bond Program, the interest rates associated with the Mortgage Revenue Bond Assisted Program are comparable to market rates, and there are exceptions to the limits of the program. For instance, if the property is in what’s known as a “targeted area,” the annual income limit may go as high as 140 percent of the median income. Like the Mortgage Revenue Bond Program, borrowers in the Mortgage Revenue Bond Assisted Program must meet local income requirements, and the purchase property be in Louisiana. In addition, there is a 640 minimum credit score requirement.
• Delta 100 Program: The Delta 100 Program is parish-specific and aimed at first-time homebuyers who do not have a traditional credit history, meaning there’s no minimum credit score to qualify. The program provides as much as 100-percent financing and 3 percent of closing costs. For those who meet program requirements, Delta 100 offers a 30-year, 2 percent fixed-rate mortgage, with no mortgage insurance requirement. Homebuyers must go through a buyer education course, and also meet minimum investment requirements (1 percent of the property purchase price or $1,500, whichever is less), as well as have sufficient cash reserves to qualify. One caveat: Gifts are not permitted. Another: The maximum loan amount is $242,000.
• Mortgage Credit Certificate (MCC): Aimed at first-time homebuyers and also low- to moderate-income buyers who plan to purchase a property in a designated area in Louisiana, the Mortgage Credit Certificate (MCC) program offers a federal tax credit of as much as 40 percent of the annual mortgage interest payments, up to $2,000 per year, for the life of the loan. The tax credit is available as long as the home remains the primary residence of the buyer. As with MCCs in other states, household income limits vary based on the number of people in the home and the purchase property’s location.
• Resilience Soft Second Program: For those with affordability constraints, LHC offers the Resilience Soft Second Program. Through this program, borrowers can get 20 percent of the purchase price, up to $55,000, as well as a maximum of $5,000 in closing costs, in a deferred mortgage, which is only payable if the borrower refinances or sells. If the borrower is in the home for the loan term — 10 years — it will be forgiven. To be eligible, prospective homebuyers must not have owned a property during the past three years. Single parents who only owned a home with a former spouse while married are also eligible, as are individuals who are displaced homemakers who only owned a home with a spouse previously. Applicants must also have an annual household income at or below 80 percent of the area median income (AMI).

How to find the best mortgage rate in Louisiana

• Step 1: Strengthen your credit score - Long before you start looking for a mortgage lender or applying for a loan, give your finances a checkup, and improve your credit score if needed.
• Step 2: Determine your budget - To find the right mortgage, you’ll need a good handle on how much house you can afford.
• Step 3: Know your mortgage options - There are a few different types of mortgages.
• Step 4: Compare rates and terms from several lenders - Rate-shop with at least three different banks or mortgage companies.
• Step 5: Get preapproved for a mortgage - Getting a mortgage preapproval is the only way to get accurate loan pricing for your specific situation.

Additional Louisiana mortgage resources

• Louisiana loan limits: Learn the FHA and conforming loan limits broken down by county in Louisiana.
• Louisiana mortgage lenders: Research mortgage lenders in Louisiana.
• Louisiana homeowners insurance: Find the right insurance coverage for your home.

Meet our Bankrate experts

Written by: Jeff Ostrowski, Principal Reporter, Mortgages

I cover mortgages and the housing market. Before joining Bankrate in 2020, I spent more than 20 years writing about real estate and the economy for the Palm Beach Post and the South Florida Business Journal. I’ve had a front-row seat for two housing booms and a housing bust. I’ve twice won gold awards from the National Association of Real Estate Editors, and since 2017 I’ve served on the nonprofit’s board of directors.

Read more from Jeff Ostrowski

Edited by: Suzanne De Vita, Senior Editor, Home Lending

I’ve covered the housing market, mortgages and real estate for the past 12 years. At Bankrate, my areas of focus include first-time homebuyers and mortgage rate trends, and I’m especially interested in the housing needs of baby boomers. In the past, I’ve reported on market indicators like home sales and supply, as well as the real estate brokerage business. My work has been recognized by the National Association of Real Estate Editors.

Read more from Suzanne De Vita