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Louisiana vs Minnesota:
Mortgage & Housing Costs

Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Louisiana and Minnesota. Updated for 2026.

MetricLouisianaMinnesota
Median Home Price$195K$335K
Property Tax Rate0.55%1.12%
Avg Closing Costs$3K$5K
Closing Cost %1.6%1.4%
Transfer TaxNone0.33%
Homeowners Insurance$3,500/yr$2,100/yr
First-Time Buyer Program
LHC Mortgage Revenue Bond
Up to $10,000 soft second loan
Minnesota Housing Start Up
Up to $18,000 deferred loan
Verdict

Louisiana wins 4 of 6 cost categories, making it the more affordable state for homebuyers overall. With a median home price of $195K and lower overall costs, Louisiana offers meaningful savings compared to Minnesota. Both states offer first-time buyer programs — explore the state pages for full details.

Monthly Payment Comparison

Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI.

Louisiana
Home Price$195,000
Down Payment (10%)$19,500
Loan Amount$175,500
Monthly P&I$1,109
Monthly Property Tax$89
Monthly Insurance$292
Monthly PMI$73
Total PITI$1,563/mo
Annual property tax: $1,073
Minnesota
Home Price$335,000
Down Payment (10%)$33,500
Loan Amount$301,500
Monthly P&I$1,906
Monthly Property Tax$313
Monthly Insurance$175
Monthly PMI$126
Total PITI$2,519/mo
Annual property tax: $3,752

Buying in Louisiana saves you approximately $956/month ($11,472/year) compared to Minnesota, based on median home prices with identical loan terms.

Which State Is Right for You?

Louisiana offers meaningfully lower home prices than Minnesota, with median prices running 42% less ($140K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of Minnesota may find Louisiana far more accessible, particularly when combined with local down payment assistance programs.

Louisiana has a moderate property tax advantage at 0.55% versus Minnesota's 1.12%. While the rate gap of 0.57% may seem small, it translates to an annual difference of approximately $2,680 when applied to each state's median home price. Over a typical homeownership period of 7-10 years, that adds up to $21K in savings.

Insurance costs favor Minnesota at $2,100/year versus $3,500/year in Louisiana, a difference of $1,400 annually. While not the largest cost factor, this adds up to over $14K over a decade of homeownership. Shop multiple carriers in either state — actual premiums depend on your specific property, coverage level, and claims history.

Both states offer down payment assistance for first-time buyers. Louisiana's LHC Mortgage Revenue Bond provides Up to $10,000 soft second loan, while Minnesota's Minnesota Housing Start Up offers Up to $18,000 deferred loan. These programs can significantly reduce your upfront costs and make homeownership accessible even if you haven't saved a full 20% down payment. Check eligibility requirements on each state's housing finance agency website — income limits and purchase price caps apply.

Key Takeaway

The bottom line: Louisiana homes cost $140K less than Minnesota on average. That translates to roughly $956 less per month in total housing costs if you choose Louisiana. For most buyers, this price gap is the single biggest factor — it affects your loan size, monthly payment, and how quickly you build equity.

Compare Other States

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