Planning to build your dream home or invest in acreage? Use this 30-year land mortgage calculator to estimate your monthly payments for long-term land financing.
30-Year Land Mortgage Calculator
30-Year Land Mortgage Calculator Formula
Even for land loans, if you secure a 30-year term, the calculation uses the standard amortization formula. However, remember that interest rates for land are typically higher than for residential homes:
Variables
- M: Monthly Loan Payment.
- P: Principal Loan Amount (Land Price – Down Payment).
- i: Monthly Interest Rate (Annual Rate / 12).
- n: Total Payments (30 Years = 360 Months).
Related Calculators
- Construction Loan Calculator
- Lot Loan Calculator
- Raw Land Financing Calculator
- Farm and Ranch Loan Calculator
What is a 30-Year Land Mortgage Calculator?
A 30-year land mortgage calculator helps you estimate payments for long-term land financing. While many land loans (“lot loans”) are short-term (e.g., 2 to 5 years) with balloon payments, some lenders offer 30-year terms, especially for “improved” land (with utilities/road access) or via government programs like USDA loans for rural areas.
Because land is considered a riskier asset than a home (you can’t live in it immediately), down payments usually range from 20% to 50%, and interest rates are often 1-2 percentage points higher than standard mortgages.
How to Calculate 30-Year Land Mortgage (Example)
Let’s calculate a scenario for buying a plot of land:
- Land Price: $100,000.
- Down Payment: 30% ($30,000).
- Loan Amount (P): $70,000.
- Interest Rate (r): 8.0% (higher than residential).
- Term (n): 30 years (360 months).
- Monthly Rate (i): 0.08 / 12 = 0.006667.
- Result: The monthly payment is approximately $513.64.
Frequently Asked Questions (FAQ)
It is difficult but possible. Most raw land loans are short-term (3-5 years) or require balloon payments. 30-year terms are more common for construction-to-permanent loans where you plan to build immediately.
Lenders typically require a higher down payment for land to mitigate risk. Expect to put down 20% to 50%, depending on whether the land is improved (has utilities) or raw.
Yes. Land loan rates are generally higher than home mortgage rates because there is no home on the property to serve as primary collateral value.
The USDA offers Section 502 Direct Loans that can sometimes be used to buy land if you plan to build a home on it. These loans may offer 30-year terms and low interest rates for eligible low-income borrowers in rural areas.