Louisiana Mortgage and Refinance Rates

Current mortgage rates in Louisiana

As of Friday, February 21, 2025, current mortgage interest rates In Louisiana are 0.00% for a 30-year fixed mortgage and 0.00% for a 15-year fixed mortgage.

Refinance rates in Louisiana

Refinance rates are still far higher than the historic lows during the pandemic, but it looks like that might become the new normal, at least for the year ahead. With that in mind, you’ll need to compare your current rate with the 6 to 7 percent range that rates are expected to settle in for 2025 to determine your break-even point for refinancing the loan.

If you’ve owned your home for a long time and paid off a sizable chunk of your mortgage, a cash-out refinance may be a good option to consider if you’re focused on achieving other financial goals. In the third quarter of 2024, the average U.S. homeowner enjoyed a gain of $5,700 in equity, according to CoreLogic.

Louisiana mortgage rate trends

While mortgage rates seem poised to settle in 2025, housing experts say they aren’t likely to fall below 6 percent by the end of the year. That said, rates are likely to spend much of 2025 in the 6 to 7 percent range.

While rates aren’t offering buyers much relief, home price growth is slower in Louisiana than in other U.S. states. Between October 2023 and October 2024, median home sales prices in Louisiana only rose by 0.5 percent to $236,000, according to ATTOM data. Home prices in the state are also much lower than the nationwide median price of existing home sales, which was $407,200 in October 2024, according to the National Association of Realtors.

National mortgage rates by loan type

Mortgage statistics for Louisiana

Whether you’re thinking about planting roots in Shreveport or you’re hoping to turn every day into a celebration in New Orleans, consider these statistics about the housing market in Louisiana before you begin your search:

• Median sales price (as of Dec. 2024): $250,300 (Redfin)
• Homes with price drops (as of Dec. 2024): 20% (Redfin)
• Median days on market (as of Dec. 2024): 71 (Redfin)
• Homeownership rate (as of Q3 2024): 68% (Census Bureau)

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:

• 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 between 5 to 9 percent. You’ll need a credit score of at least 640 to qualify.
• 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, but income limits aren’t as restrictive. 
• 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. You’ll need to be able to contribute at least 1 percent of the purchase price or $1,500 (whichever is less) to get up to 3 percent of the purchase price for closing costs and prepaid items. 
• 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. 

How to find the best mortgage rate in Louisiana

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.
2. Determine your budget - To find the right mortgage, you’ll need a good handle on how much house you can afford.
3. Know your mortgage options - There are a few different types of mortgages.
4. Compare rates and terms from several lenders - Rate-shop with at least three different banks or mortgage companies, and read lender reviews to find the best one for your situation.
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: Laurie Richards, Editor, Home Lending

I’ve spent five years in writing and editing roles, and I now focus on mortgage, mortgage relief, homebuying and mortgage refinancing topics. I’m most interested in providing resources for aspiring first-time homeowners to help demystify the homebuying process. In 2021, I earned a Poynter ACES Certificate in Editing. I have an MA in English. 

Read more from Laurie Richards