Louisiana Mortgage Calculator
Calculate your exact monthly payment (PITI) for Louisiana real estate. This tool automatically processes Louisiana's unique 10% assessment ratio, the $75,000 Homestead Exemption, and coastal hazard insurance benchmarks.
Understanding Louisiana's unique real estate laws
The 10% Assessment Ratio
Unlike states that tax you on the full purchase price of your home, Louisiana state law dictates that residential property is only assessed at 10% of its fair market value. For example, if you buy a home for $300,000, your local Parish Assessor will record the "Assessed Value" as just $30,000.
The Generous Homestead Exemption
Louisiana offers one of the most powerful homestead exemptions in the country. If the home is your primary residence, the state exempts the first $7,500 of your assessed value from parish and state taxes. Because of the 10% ratio, this essentially wipes out the taxes on the first $75,000 of your home's actual market value. Note: This exemption generally does not apply to separate city/municipal taxes, except in Orleans Parish.
Calculating with "Mills"
Louisiana property tax rates are expressed in "Millage Rates" rather than simple percentages. One mill equals one-tenth of one cent ($0.001). To calculate your tax, you multiply your taxable assessed value by your local millage rate and divide by 1,000. A typical Parish has a rate between 90 and 120 mills.
The Civil Law Notary System
Louisiana operates under Napoleonic Civil Law, making its real estate closing process completely unique. Closings are not handled by escrow agencies in the traditional sense; they require an "Act of Sale" executed before a commissioned Civil Law Notary or a real estate attorney[cite: 1]. Expect to see Notary/Attorney fees ranging from $500 to $800 on your final closing disclosure[cite: 1].
Zero State Transfer Tax
Louisiana is one of the rare states that does not charge a statewide real estate transfer tax (or documentary stamp tax) on the sale of a home[cite: 1]. This saves buyers and sellers thousands of dollars at closing. The only major exception is Orleans Parish, which charges a flat documentary transaction fee of $325 per document[cite: 1].
Frequently asked questions
Why is Louisiana homeowners insurance so expensive?
Louisiana faces extreme hurricane, wind, and severe weather exposure. Following a series of catastrophic storms, many national insurance carriers left the state, forcing homeowners into the state-backed insurer of last resort (Louisiana Citizens Property Insurance). It is critical to budget $2,500 to $6,000+ per year for your hazard policy depending on how close you live to the Gulf Coast[cite: 1].
Does standard homeowners insurance cover flooding?
No. Standard hazard policies explicitly exclude flood damage. If your home is located in a FEMA Special Flood Hazard Area (SFHA, such as Zone AE or VE), your mortgage lender will legally require you to purchase a separate National Flood Insurance Program (NFIP) policy. Depending on the property's elevation certificate, this can add $800 to $2,000+ per year.
What is the Louisiana Housing Corporation (LHC)?
The LHC offers programs designed to assist low-to-moderate-income residents and first-time homebuyers with down payments and closing costs[cite: 1]. These programs can provide cash assistance ranging from 3% to 4% of the loan amount, but they come with strict income and purchase price limits based on the specific Parish.
About this calculator
This calculator models mortgage payments by combining standard amortization formulas with Louisiana's statutory property tax logic (10% assessment ratio and $7,500 assessed homestead exemption).
The calculation engine utilizes the following logic:
Loan Amount = Home Price − (Home Price × Down Payment %)
Monthly P&I = Loan Amount × [r(1+r)^n] / [(1+r)^n - 1]
*Where r is the monthly interest rate and n is the total number of months.
Assessed Value = Home Price × 10%
Homestead Exemption (If Primary Residence) = $7,500
Taxable Value = Max(0, Assessed Value − Homestead Exemption)
Annual Parish Tax = Taxable Value × (Millage Rate ÷ 1000)
Monthly Escrow = (Annual Tax ÷ 12) + (Hazard Insurance ÷ 12) + (Flood Insurance ÷ 12)
Total Monthly PITI = Principal & Interest + Monthly Escrow + HOA + PMI
Monthly P&I = Loan Amount × [r(1+r)^n] / [(1+r)^n - 1]
*Where r is the monthly interest rate and n is the total number of months.
Assessed Value = Home Price × 10%
Homestead Exemption (If Primary Residence) = $7,500
Taxable Value = Max(0, Assessed Value − Homestead Exemption)
Annual Parish Tax = Taxable Value × (Millage Rate ÷ 1000)
Monthly Escrow = (Annual Tax ÷ 12) + (Hazard Insurance ÷ 12) + (Flood Insurance ÷ 12)
Total Monthly PITI = Principal & Interest + Monthly Escrow + HOA + PMI