Louisiana Mortgage Rates | LA Mortgage Options

Whether you’re a first-time homebuyer in Louisiana, or you’ve lived in LA your entire life, it’s important to understand the mortgage process. With so many mortgage options available, it’s easy to become overwhelmed by facts, figures, and fine-print.

 

Maybe you’re looking for a home on the Gulf in New Orleans, or a fixer-upper in Monroe off of Interstate 20, or a home in Alexandria near Kisatchie National Forest. Whatever your Louisiana home-owning goals or past experience, our company proudly offers valuable, informative Louisiana mortgage information and lender referrals.

 

Step 1: Establish a Budget

How can you pick the right Louisiana mortgage if you don’t know how much you can afford to pay for it each month? Before being bombarded with mortgage facts and figures, take the time to create

a comprehensive monthly budget. Figure out how much you currently spend (and save) each month. In doing so, you’ll b

e able to estimate how much you can afford to spend on your monthly mortgage. Keep in mind that the magic number is 30; that is, do not apply for a mortgage that is more than 30% of your gross monthly income (unless, of course, you can count on an increase in income in the future).

 

Step 2: Understand Louisiana Mortgage Options

There are several types of Louisiana mortgages to choose from, each with potential pros and cons.

  • Perhaps you are a diehard fisherman and want to retire near the Mississippi River. Since you plan to stay in the riverside Louisiana home for the rest of your life, a Fixed Rate Mortgage (FRM) is a great option. With a FRM, the interest rate and monthly mortgage payment are fixed, or remain the same, for the entire loan term. This is a smart option for retired homeowners on a fixed income, because their payment is stable and predictable.
  • Let’s suppose you’re moving to Baton Rouge for a new job, but plan to relocate again in about 5 years. If so, you may want to consider an Adjustable Rate Mortgage (ARM). An ARM begins with a low interest rate and monthly payment. After a few years (usually 5-7 years), the interest rate could rise or fall according to current market rates. If you only plan to live in the Baton Rouge home for a few years, though, an ARM would allow you to take advantage of a low initial interest rate and monthly payment.
  • What if you already own a home in Shreveport, Louisiana, but need a lower monthly mortgage payment? In this case, you could refinance your existing home loan or apply for a loan modification. Though loan modification is a cheaper and easier solution to a high mortgage payment, refinancing is popular because it will permanently lower your mortgage payment. Loan modification is only a temporary solution.
  • If you currently have a LA mortgage and need to generate extra cash to pay for living expenses, renovations, or repairs, you can apply for a Home Equity Loan (HEL). A HEL allows homeowners to tap into their home equity and receive much-needed cash. Keep in mind that Home Equity Loans generally have higher interest rates than that of refinancing.

 

Step 3: Finding the Best Louisiana Mortgage Rate

To find the lowest Louisiana mortgage rates, you’ll have to do your research and comparison shop. Request quotes from various Louisiana mortgage lenders. Remember that lenders generally reserve their lowest mortgage rates for applicants with good credit scores.

 

Or, you can depend on us! If you’re short on time, we’ll be happy to do the research for you and match you with a top-rated Louisiana mortgage lender offering bargain rates and dependable customer service. Contact us today for a free no-obligation rate quote, and envision opening the door to your new Louisiana home!