Land Loan Calculator
Land loans — for raw, unimproved land or lots with utilities already in place — typically carry higher rates and shorter terms than a standard mortgage, since land is considered riskier collateral than a home. Enter your loan amount, rate, and term to estimate your monthly payment.
Enter your numbers and select Calculate to see your estimated payment.
How this calculation works
Standard amortization formula applied to the loan amount, rate, and term entered.
Example calculation
An $85,000 land loan at 8.75% over 15 years runs about $850 per month, with roughly $68,000 in total interest.
Frequently asked questions
Are land loan rates higher in Texas specifically?
Texas has a large, active rural and recreational land market with many dedicated land and ranch lenders, but rate levels still depend on the individual lender, your down payment, and whether the land is raw, unimproved, or has utilities and access already in place — not the state alone.
Why do land loans need bigger down payments?
Because land alone is harder to resell than a home if a borrower defaults, many lenders require 20–50% down, especially for raw or rural land without immediate development plans.
Does financing change once I build on the land?
Often yes — many borrowers use a land loan short-term, then refinance into a construction or conventional mortgage once building begins, sometimes through a construction-to-permanent loan.
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This calculator provides estimates for informational purposes only and is not a loan offer or financial advice. See our Disclaimer.