Land Loan Calculator - Estimate Land Loan Payments | Casaplorer (2024)

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August 17, 2022

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Land Loan Calculator

Land Loan Calculator - Estimate Land Loan Payments | Casaplorer (2)Inputs

$

Down Payment

$

OR

%

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Land Loan Summary

Monthly Payment:$1,060.66

Land Loan Amount:$100,000

Total Land Loan Payments:$127,278.62

Total Land Loan Interest Cost:$27,278.62



Comparing Land Loan Payment Frequency
Payment FrequencyTotal Interest CostSavings
Monthly$27,278.62-
Quarterly$27,685.66-$407.04
Semi-Annual$28,294.26-$1,015.64
Annual$29,504.57-$2,225.96
Comparing Land Loan Term Lengths
Term LengthMonthly PaymentTotal Interest CostSavings
30 Years$536.82$93,255.78-$65,977.17
25 Years$584.59$75,377.01-$48,098.39
20 Years$659.96$58,389.38-$31,110.76
15 Years$790.79$42,342.85-$15,064.23
10 Years$1,060.66$27,278.62-
5 Years$1,887.12$13,227.4$14,051.22
2 Years$4,387.14$5,291.34$21,987.28

About the Land Loan Calculator

This land loan calculator can help those looking for land financing by estimating your land loan payments and creating an amortization schedule. You can also compare different land loan rates and loan terms, such as changing your land loan payment frequency or the term length, to see how it will affect your land loan payments and the total cost of the loan.

In order to estimate your land payments, this land loan calculator uses the following:

  • Purchase Price
  • This is the cost of purchasing the land lot. Besides the purchase price, you may also need to pay additional costs, such as real estate agent commissions , legal fees, and closing costs.

  • Down Payment
  • You will need to make a down payment in order to get a land loan. The minimum down payment required will depend on the type of land that you are financing and your land loan lender. This can range from a 20% minimum down payment to as high as a 50% minimum down payment.

  • Interest Rate
  • This is your land loan interest rate. The default land loan rate that this calculator uses is 5%. You can customize this to match your own financing situation more closely.

  • Loan Term
  • The loan term is the number of years that you will be paying your land loan for. Your land loan payments will be amortized over this period, which means that your land loan will be fully paid off after the end of your loan term.

  • Payment Frequency
  • Payment frequency is how often you will make land loan payments. Common land loan payment frequencies are monthly payments, quarterly payments, semi-annual payments, and annual payments. Your payment frequency choice can affect the total cost of your land loan. For example, making more frequent loan payments can slightly reduce the total interest paid on your land loan.

Land Loan Calculator - Estimate Land Loan Payments | Casaplorer (4)Land Loan Calculator - Estimate Land Loan Payments | Casaplorer (5)

Land Loan Calculations

These are the steps to calculating your land loan payment amount:

  • Determine land loan amount

    The first thing to calculate is the amount of money that you need to borrow. This would simply be the purchase price of the land subtracted by your down payment. The down payment would be paid in cash from money that you have saved up, so you wouldn’t be borrowing the down payment amount.

    For example, if your purchase price is $125,000 and you make a $25,000 down payment, then your land loan amount would be $100,000.

    Land Loan Amount = Purchase Price - Down Payment


  • Find the number of payments

    The number of payments you make will depend on your loan term length and your payment frequency. To find the number of payments, you will multiply the number of payments you will make in a year by the term length of your loan in years.

    For example, if you make monthly payments, you will make 12 payments in a year. A loan term of 10 years would then be 10 years x 12 payments per year = 120 payments. Similarly, there are four quarterly payments in a year. If you make quarterly payments for 10 years, it would be 4 x 12 = 48 payments.

    Number of Payments = (Number of Years) x (Number of Payments in a Year)


  • Find the periodic interest rate

    Your land loan lender will usually give you a quote for an annual land loan rate. If your payment frequency is not annual payments, you will need to find your periodic interest rate. This can be found by dividing your annual land loan rate by your payment frequency.

    For example, if your annual rate is 10%, then your semi-annual periodic rate would be 5% (from 10% divided by 2), your quarterly periodic rate would be 2.5% (from 10% divided by 4), and your monthly periodic rate would be 0.833% (from 10% divided by 12).

    Periodic Interest Rate =


  • Calculate the Land Loan Payment Amount

    This will be the amount that you would need to pay on each payment date. To calculate your payment amount, the formula is:

    Periodic Interest Rate =

    Where n = Number of Payments found in step 2

    And i = Periodic Interest Rate found in step 3

    For example, let’s say that your loan amount is $100,000 for a loan term of 10 years at an interest rate of 5%. This means that your total number of payments is 120 and your periodic interest rate is 0.4167%. Using the land loan payment formula:

    Loan Payment =

    Loan Payment =


    Loan Payment =

    Loan Payment = $1,060.66

    The monthly land loan payment would be $1,060.66 for 10 years.

  • Total Land Loan Payment

    Once you have found your loan payment amount, you can now find your total payment amount and the total interest cost of your land loan. Your total land loan payments would be your regular loan payment amount multiplied by the number of payments that you have to make.

    For example, if your monthly payment was $1,060.66 for 10 years, then the total loan payments amount would be $1,060.66 x 12 months x 10 years. This gives a total loan payment amount of $127,279.20.

    Total Loan Payments = Loan Payment Amount x Total Number of Payments

  • Total Land Loan Interest Cost

    This would be the amount of interest that you would have had to pay over the entire term of your land loan. This can be found by subtracting the original loan amount from the total loan payments that you have made.

    For example, if you made $127,279.20 in loan payments over 10 years when the initial amount that you borrowed was $100,000, then the total interest cost of your loan is $27,279.20.

    Total Interest Cost = Total Loan Payments - Initial Loan Amount Borrowed

Land Loan Calculator - Estimate Land Loan Payments | Casaplorer (6)Land Loan Calculator - Estimate Land Loan Payments | Casaplorer (7)

Current Land Loan Rates

Some land loan lenders post their rates online. However, for most lenders, you will need to contact them for a customized rate. That’s because each land loan purchase is unique and rates can vary significantly based on the location, land type, zoning, acreage, and amount. Below is a list of current land loan rates as of February 2022.

Land Loan Calculator - Estimate Land Loan Payments | Casaplorer (8)Land Loan Calculator - Estimate Land Loan Payments | Casaplorer (9)

Members Choice Credit Union

Members Choice Credit Union (MCCU) operates in West Houston, including Katy and Cy-Fair. As of February 2022, you can borrow up to $500,000 to finance the purchase of farming, hunting, or fishing land at a fixed interest rate. Their land loan rates start as low as 6.403% APR for a 10-year term. They also offer balloon payments for their 30/15 year-term.

Members Choice Credit Union Land Loan Rates
TermLand Loan Rate (Starting From)
5-Year Fixed6.499%
10-Year Fixed6.403%
15-Year Fixed6.537%
30/15-Year Balloon6.837%

Source: Members Choice Credit Union. Posted rates are as of February 2022.

Land Loan Calculator - Estimate Land Loan Payments | Casaplorer (10)Land Loan Calculator - Estimate Land Loan Payments | Casaplorer (11)

Washington Federal Bank (WaFd Bank)

Washington Federal Bank (WaFd Bank) operates in eight states: Washington, Oregon, Idaho, Nevada, Utah, Arizona, New Mexico, and Texas. With WaFd Bank, you can borrow up to $700,000 with a land loan with a maximum LTV of 70% on improved land.

WaFd Bank offers two land loan terms: an interest-only 24 month term and a 20-year fixed rate term. As of February 2022, WaFd's land loan rates for a 24-month interest-only term is 5.75%. For a 20-year fixed rate term, the rate is 5.875%. If you have a credit score of at least 720 and a down payment of 50%, you may be eligible for a discount of 2% off of your land loan rate.

WaFd Bank Land Loan Rates
TermLand Loan Rate (Starting From)
24-Month Interest-Only5.75%
20-Year Fixed5.875%

Source: WaFd Bank. Posted rates are as of February 2022.

Land Loan Calculator - Estimate Land Loan Payments | Casaplorer (12)Land Loan Calculator - Estimate Land Loan Payments | Casaplorer (13)

Michigan Schools and Government Credit Union

Michigan Schools and Government Credit Union (MSGCU) is only available to residents of Michigan. MSGCU offers vacant land loans for up to $200,000 for land lots of up to 10 acres. As of February 2022, MSGCU's vacant land loan rate for a 10-year fixed term starts from as low as 4.125%, or a 4.730% APR based on a loan of $50,000.

MSGCU Land Loan Rates
TermLand Loan Rate (Starting From)
10-Year Fixed4.125%

Source: Michigan Schools and Government Credit Union. Posted rates are as of February 2022.

Land Loan Calculator - Estimate Land Loan Payments | Casaplorer (14)Land Loan Calculator - Estimate Land Loan Payments | Casaplorer (15)

Randolph-Brooks Federal Credit Union

Randolph-Brooks Federal Credit Union (RBFCU), a credit union based in Texas, offers land loans for up to 90% LTV (10% down payment), 60-day rate locks, and no building requirements. As of February 2022, their land loan rates start as low as 4.75% for a 4-year term or a 5.365% APR. Mortgage points are also available to be purchased to lower your land loan rate.

RBFCU Land Loan Rates
TermLand Loan Rate (Starting From)
4-Year Fixed4.75%
7-Year Fixed5.375%
10-Year Fixed5.50%
15-Year Fixed5.625%

Source: Randolph-Brooks Federal Credit Union. Posted rates are as of February 2022.

Any calculators or content on this page is provided for general information purposes only. Casaplorer does not guarantee the accuracy of information shown and is not responsible for any consequences of its use.

Greetings, enthusiasts of land financing and real estate! I am here to share my expertise and delve into the intricacies of the Land Loan Calculator and related concepts. As someone deeply immersed in the world of real estate financing, I can assure you of my comprehensive understanding and practical knowledge in this domain.

Let's dissect the key elements mentioned in the provided article:

Land Loan Calculator:

The Land Loan Calculator is a valuable tool for individuals seeking land financing. It aids in estimating land loan payments and creating an amortization schedule. The calculator allows users to compare different land loan rates and terms, providing insights into how adjustments in payment frequency or loan term length can impact payments and the overall loan cost.

Concepts Used in the Calculator:

  1. Purchase Price:

    • Definition: The cost of acquiring the land.
    • Role in Calculation: Used as the basis for determining the loan amount.
  2. Down Payment:

    • Definition: Initial payment made to secure the land loan.
    • Role in Calculation: Influences the loan amount, calculated as the difference between the purchase price and the down payment.
  3. Interest Rate:

    • Definition: The rate at which interest accrues on the land loan.
    • Role in Calculation: Affects the overall cost of the loan; users can customize this rate based on their financing situation.
  4. Loan Term:

    • Definition: The duration for which the land loan is to be repaid.
    • Role in Calculation: Affects the frequency and amount of payments, influencing the total cost of the loan.
  5. Payment Frequency:

    • Definition: How often land loan payments are made (e.g., monthly, quarterly, semi-annually, or annually).
    • Role in Calculation: Impacts the total cost of the loan; more frequent payments may reduce total interest.

Land Loan Calculations:

Determining Land Loan Payment Amount:

  1. Land Loan Amount Calculation:

    • Formula: Land Loan Amount = Purchase Price - Down Payment
  2. Number of Payments Calculation:

    • Formula: Number of Payments = (Number of Years) x (Number of Payments in a Year)
  3. Periodic Interest Rate Calculation:

    • Formula: Periodic Interest Rate = (Annual Interest Rate) / (Payment Frequency)
  4. Land Loan Payment Amount Calculation:

    • Formula: Land Loan Payment = Loan Amount * (Periodic Interest Rate / (1 - (1 + Periodic Interest Rate)^(-Number of Payments)))

Total Land Loan Payments and Total Interest Cost:

  1. Total Land Loan Payments Calculation:

    • Formula: Total Loan Payments = Loan Payment Amount * Total Number of Payments
  2. Total Land Loan Interest Cost Calculation:

    • Formula: Total Interest Cost = Total Loan Payments - Initial Loan Amount Borrowed

Current Land Loan Rates:

The article provides information on land loan rates from specific lenders as of February 2022. Notable lenders include Members Choice Credit Union, Washington Federal Bank, Michigan Schools and Government Credit Union, and Randolph-Brooks Federal Credit Union. The rates are categorized by term length and loan type.

In conclusion, the Land Loan Calculator is a powerful tool that empowers users to make informed decisions about land financing. Understanding the concepts and calculations involved is crucial for individuals navigating the complex landscape of land loans. If you have any specific questions or need further clarification, feel free to ask!

Land Loan Calculator - Estimate Land Loan Payments | Casaplorer (2024)
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