Land Loan Calculator
(20.0% of land price)
Calculate land loan payments with our advanced calculator. Estimate monthly costs, amortization schedules, and total interest for raw land purchases. Perfect for investors and buyers.
What Is It?
A Land Loan Calculator helps potential buyers and investors estimate financing costs for purchasing undeveloped property. Key features include:
- Payment estimates for raw/unimproved/improved land
- Amortization schedules
- Comparison of loan types (fixed, variable, balloon)
- Tax and insurance cost projections
How to Use
- Enter Land Price: Total purchase amount
- Set Loan Terms:
- Down payment (typically 20-50% for land loans)
- Interest rate (higher than standard mortgages)
- Loan duration (shorter than home loans, usually 5-15 years)
- Select Loan Type: Choose fixed, variable, or balloon payment
- Calculate: View monthly payments, total interest, and amortization
FAQs
Q: Why are land loan rates higher?
A: Lenders consider raw land riskier (no structures = less collateral).
Q: What’s the minimum down payment?
A: Typically 20-50% (vs 3-20% for homes).
Q: Can I include construction costs?
A: No - use a construction loan for building. This calculates land purchase only.
Q: How accurate are the estimates?
A: Provides approximations - final terms depend on credit, location, and lender.
Key Terms Explained
- Raw Land Loan: For completely undeveloped property (highest rates)
- Balloon Payment: Large final payment after smaller periodic payments
- Amortization: Payment schedule showing principal/interest breakdown
- LTV (Loan-to-Value): Loan amount ÷ land value (lower = better rates)
Why This Calculator?
- Specialized: Accounts for land loan specifics (higher rates/down payments)
- Visual: Charts show payment allocations and equity growth
- Flexible: Compare multiple financing scenarios
- Educational: Explains unique aspects of land financing