Summary List Placement
Table of Contents: Masthead StickyBuying a home in Louisiana
According to Zillow, the typical home value in Louisiana is lower than the typical US home price of $259,906. The typical home value in Louisiana is $176,987, and Zillow expects the value to increase to $188,000 by September 2021.
First-time homebuyer programs in Louisiana
The Louisiana Housing Corporation has several types of financial assistance if you get a mortgage from a participating lender:
Home | MRB Program: If you earn a low-to-moderate income, you can get a discount on mortgage insurance and a loan of 4% to 9% of your mortgage amount as down payment/closing cost assistance.
Mortgage Revenue Bond Assisted Program: You may receive a loan for up to 4% of your mortgage amount for down payment and closing cost assistance, and you could pay reduced mortgage insurance costs.
Market Rate GNMA Program: If you’re getting a government-backed mortgage, you can get a loan for up to 4% of your mortgage amount, and you won’t have to pay origination fees.
Delta 100 Program: If you live in certain parishes, you can receive a mortgage at a 2% fixed rate, and get up to 3% of your mortgage amount toward closing costs.
Mortgage Credit Certificate Program: Claim 40% of the interest paid on your mortgage on your federal taxes, up to $2,000 per year.
Resilience Soft Second Program: This program is meant to help buyers who can’t afford a mortgage to cover the full cost of a home. You’ll receive a loan of up to 20% of the home purchase price, up to $55,000, and the government will forgive the loan if you live in the home for at least 10 years. You may also get an additional $5,000 toward closing costs.
If you’re buying a home in New Orleans, you may be eligible for the Direct Homebuyer Soft Second Mortgage Assistance Program through the local government. You’ll get a soft second mortgage for up to $45,000, plus $5,000 for closing costs.
In Kenner, you can get up to $50,000 as a soft second mortgage through the First-Time Homebuyers Assistance Program. Depending on how much you borrow, the local government will forgive your loan if you live in the home for five to 15 years.
Historic mortgage rates for Louisiana
By looking at the average mortgage rates in Louisiana since 2010, you can see trends for 30-year fixed mortgages, 15-year fixed mortgages, and 5/1 adjustable mortgages:
Seeing how today’s rates compare to historic Louisiana mortgage rates may help you decide whether you’d be getting a good deal by getting a mortgage or refinancing now.
How do 30-year fixed rates work?
You’ll pay a higher interest rate on a 30-year fixed mortgage than on a shorter-term fixed-rate mortgage. The 30-year fixed rates used to be higher than adjustable rates, but recently 30-year terms have been the better deal.
Monthly payments are relatively low for a 30-year term, because you’re spreading payments out over a …read more
Source:: Business Insider