Louisiana Mortgage Rates

December 3, 2016 06:38 AM Eastern

Refinance rates now in New Orleans, LA [Change this]

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    Home Price (Purchase)
    When you get a mortgage to purchase a home, the lender uses the lower of the agreed-upon purchase price or the property's appraised value to determine your maximum loan amount. The loan amount divided by the property home price equals your loan-to-value ratio, or LTV. That ratio is one of the major factors that lenders use to set your mortgage rate. If your LTV exceeds 80 percent, you'll probably be required to pay mortgage insurance, which increases your monthly payment. If the property appraises for less than the agreed-on purchase price, you are not usually required to complete the purchase.
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    Home Value (Refinance)
    This is your estimate of the current value of your property. When you refinance, your home is almost always evaluated by a licensed appraiser. The refinance loan amount divided by the property's appraised value equals your loan-to-value ratio (LTV), and that number is one of the major factors that determine your mortgage rate. To get an accurate refinance rate quote, your home value estimate must be reasonably accurate.
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    Down Payment
    The down payment is the amount you pay upfront when you finance property. Your purchase price minus your down payment equals your mortgage amount. The higher your down payment, the more likely you are to be approved for a home loan. If your down payment is less than 20 percent of the purchase price, you'll probably be required to pay for mortgage insurance, which increases your monthly payment.
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    Credit Score
    Your credit score is a number designed to measure your credit-worthiness. It's based on a formula that combines many factors, including your payment history, amount of credit used and number of accounts. This number is used by lenders to calculate the probability that you'll default on your mortgage. Most lenders won't approve mortgages to applicants with credit scores lower than 620. Your credit score is one of the most important factors that determines your mortgage rate - applicants with higher scores are offered better mortgage rates.
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Mortgage rate quotes displayed on LendingTree LoanExplorer℠, including loan pricing data, rates and fees, are provided by third party data providers including, but not limited to, Mortech®, a registered trademark of Zillow®, LoanXEngine, a product of Mortgage Builder Software, Inc., and LoanTek, Inc.

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Louisiana mortgage lenders are ready to provide you with home loan quotes and information about available programs. Mortgages in the Bayou State are regulated by the Office of Financial Institutions.

Louisiana Mortgage Rates

Mortgage rates are different in each state. The state economy, its lending laws and competition among mortgage lenders are factors that contribute to current Louisiana mortgage rates. If you are looking for a mortgage in Louisiana, here is a sampling of current rates:

 Buying a Home in Louisiana

Home prices in Louisiana have remained stable despite the recession, declining less than one percent from their peak in the first quarter of 2009. They continue to rise and are expected to increase another two percent over the next twelve months, outperforming housing prices in the rest of the country.

Closing costs in Louisiana are a little higher than the national average at $2,443. Check with your lender about rolling them into your mortgage.

Home buyers who need additional assistance with down payments and financing can turn to a number of state, regional and local community programs, including these:

FHA Mortgages in Louisiana

FHA mortgages allow borrowers to put as little as 3.5% down on their homes. In Louisiana, FHA mortgages are not as popular as they are in much of the country. This means it you might have to work a little harder to get mortgage quotes from FHA-approved mortgage lenders.

In the New Orleans metro, the borrowing cap on FHA loans is $287,500 and in Baton Rouge, it's $280,000. For the rest of the state, the limit is $271,050. You can compare rates from FHA-approved Louisiana lenders just as you would for conventional home loans.

VA Home Loans

If you're a veteran or serve in the military or the National Guard, you're probably eligible to borrow with a VA mortgage. You can finance 100 percent of your home's purchase up to the limit imposed by your mortgage lender (the VA does not cap loan amounts). Most lenders in Louisiana limit 100 percent VA home loans to $417,000.