Purchasing a home in Louisiana involves more than just the principal and interest on your loan. Your actual monthly mortgage payment, often referred to as PITI, is composed of several components: Principal, Interest, Taxes, and Insurance. This calculator helps you estimate this total monthly outlay, providing a clearer picture of your potential homeownership costs.
The Components of Your Monthly Payment (PITI):
Principal: This is the amount you borrow from the lender to purchase the home. Your monthly payment includes a portion that goes towards reducing this outstanding balance over the life of the loan.
Interest: This is the cost of borrowing the money. The interest rate is a key factor in your monthly payment; a higher rate means more of your payment goes towards interest.
Taxes: This refers to the annual property taxes levied by local Louisiana authorities. These taxes are typically paid monthly by your lender into an escrow account and then disbursed when they are due. Our calculator estimates this based on the annual amount you provide.
Insurance: This includes your homeowner's insurance policy premium, which protects against damage or loss to your property. Like property taxes, this is often collected monthly and held in escrow. This calculator uses the annual premium you enter.
HOA Fees: If your property is part of a Homeowners Association, you may have monthly or annual fees. These are included in our calculation if provided.
How the Calculation Works:
The core of the mortgage payment calculation involves determining the monthly principal and interest (P&I). This is typically calculated using the following formula:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]
Where:
M = Your total monthly mortgage payment (Principal & Interest)
P = The principal loan amount (Home Price – Down Payment)
i = Your monthly interest rate (Annual Interest Rate / 12)
n = The total number of payments over the loan's lifetime (Loan Term in Years * 12)
To this P&I amount, we add the monthly property taxes (Annual Property Tax / 12), the monthly homeowner's insurance premium (Annual Homeowner's Insurance / 12), and any monthly HOA fees.
Louisiana Specific Considerations:
While the calculation formula is standard, property taxes and insurance rates can vary significantly across different parishes and regions within Louisiana. Flood insurance, in particular, is a crucial consideration for many Louisiana homeowners due to the state's geography and susceptibility to hurricanes and flooding. Ensure you factor in the specific insurance requirements and costs for your chosen location. Lenders often require flood insurance in designated flood zones.
This calculator provides an estimate. For precise figures, consult with a mortgage lender and consider obtaining quotes for homeowners and flood insurance specific to the property address.
function calculateMortgage() {
var homePrice = parseFloat(document.getElementById("homePrice").value);
var downPayment = parseFloat(document.getElementById("downPayment").value);
var loanTerm = parseInt(document.getElementById("loanTerm").value);
var interestRate = parseFloat(document.getElementById("interestRate").value);
var propertyTax = parseFloat(document.getElementById("propertyTax").value);
var homeInsurance = parseFloat(document.getElementById("homeInsurance").value);
var hoaFees = parseFloat(document.getElementById("hoaFees").value);
var resultContainer = document.getElementById("result-container");
var monthlyPaymentDisplay = document.getElementById("monthlyPayment");
// Input validation
if (isNaN(homePrice) || homePrice <= 0) {
alert("Please enter a valid Home Price.");
return;
}
if (isNaN(downPayment) || downPayment < 0) {
alert("Please enter a valid Down Payment.");
return;
}
if (isNaN(loanTerm) || loanTerm <= 0) {
alert("Please enter a valid Loan Term in years.");
return;
}
if (isNaN(interestRate) || interestRate < 0) {
alert("Please enter a valid Annual Interest Rate.");
return;
}
if (isNaN(propertyTax) || propertyTax < 0) {
alert("Please enter a valid Annual Property Tax amount.");
return;
}
if (isNaN(homeInsurance) || homeInsurance < 0) {
alert("Please enter a valid Annual Homeowner's Insurance amount.");
return;
}
if (isNaN(hoaFees) || hoaFees homePrice) {
alert("Down payment cannot be greater than the home price.");
return;
}
var loanAmount = homePrice – downPayment;
var monthlyInterestRate = (interestRate / 100) / 12;
var numberOfPayments = loanTerm * 12;
var principalAndInterest = 0;
if (monthlyInterestRate > 0) {
principalAndInterest = loanAmount * (monthlyInterestRate * Math.pow(1 + monthlyInterestRate, numberOfPayments)) / (Math.pow(1 + monthlyInterestRate, numberOfPayments) – 1);
} else {
// Handle case for 0% interest rate
principalAndInterest = loanAmount / numberOfPayments;
}
var monthlyPropertyTax = propertyTax / 12;
var monthlyHomeInsurance = homeInsurance / 12;
var totalMonthlyPayment = principalAndInterest + monthlyPropertyTax + monthlyHomeInsurance + hoaFees;
monthlyPaymentDisplay.textContent = "$" + totalMonthlyPayment.toFixed(2);
resultContainer.style.display = "block";
}