Land Payment Calculator – Lot Loan Payment Estimator
Estimate land loan payments with flexible payment frequency options.
Results are estimates only and do not constitute a loan offer. Consult a lender for actual rates and terms.
Table of Contents
How to Use
- Enter the land purchase price and your down payment percentage.
- Input the annual interest rate and loan term in years.
- Select your preferred payment frequency: monthly, biweekly, or weekly.
- Optionally add annual property tax and insurance amounts.
- Click Calculate to view your payment amount and breakdown.
How payment frequency affects your loan
Choosing a more frequent payment schedule can reduce total interest paid and shorten your loan term. Biweekly payments result in 26 payments per year, equivalent to 13 monthly payments, helping you pay off the loan faster.
- Monthly: 12 payments per year, standard schedule.
- Biweekly: 26 payments per year, saves interest over time.
- Weekly: 52 payments per year, maximum interest savings.
Understanding land loans
Land loans typically have higher interest rates and shorter terms than traditional mortgages because lenders consider undeveloped land riskier. Down payments often range from 20% to 50% depending on the land type.
- Raw land: Highest rates, largest down payments required.
- Improved lots: Better rates with utilities and road access.
- Construction-ready: May qualify for construction-to-permanent loans.
Tips to reduce land purchase costs
- Make a larger down payment to reduce the loan amount and interest.
- Shop multiple lenders including credit unions and local banks.
- Consider owner financing for potentially better terms.
- Choose biweekly or weekly payments to pay off faster.
- Negotiate closing costs and fees with your lender.
Frequently Asked Questions
- What is a typical interest rate for land loans?
- Land loan rates typically range from 6% to 12%, higher than traditional mortgages. Rates depend on the land type, your credit score, down payment, and whether the land has utilities and road access.
- How does biweekly payment save money?
- Biweekly payments mean you make 26 half-payments per year, equivalent to 13 full monthly payments instead of 12. This extra payment goes toward principal, reducing total interest and shortening the loan term.
- Can I include property taxes in my land payment?
- Yes, many lenders offer escrow accounts that include property taxes and insurance in your regular payment. This calculator shows how these costs affect your total payment amount.