Mortgage Rates Florida: Get The Lowest Rates In The Sunshine State

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If you like sunny skies and beautiful beaches, then Florida is the place to live. But the housing market has stiff competition and buying a property in the state isn't that easy –⁠ you need to outbid other buyers to get a house that checks all the boxes on your wishlist.

To help you gain an advantage, check out this guide on the home buying process, complete with access to the latest Florida mortgage and refinance rates. With this information, you can get the best deal on your mortgage!

Mortgage Loan Options In Florida

Most people who purchase real estate take out a home loan, otherwise known as a mortgage. You can get one from banks, credit unions, and private lending firms.

Your loan's mortgage rate, minimum down payment (DP) amount, and borrower qualifications will depend on the type of mortgage you choose. Generally, you can select from the following:

Conventional Loans

Conventional home loans are those that are not backed by a federal government agency. As such, they come with higher mortgage rates and stricter credit requirements. Conventional mortgages can be used to finance any property type, such as a vacation home or an investment property.

In some cases, you can get a conventional loan for a DP as low as 3% of the home price. However, you might be required to pay private mortgage insurance (PMI) if your DP is below 20%.

Government-Backed Loans

Government-insured mortgages are those that are backed by federal agencies. Typically, this type of loan comes with low/no-down-payment options as well as low interest rates. However, government-backed mortgages also have strict eligibility requirements.

Some types of government-insured home loans include the following:

Federal Housing Administration (FHA) Loans: FHA loans enable people with less-than-ideal credit to own a home. Most borrowers can qualify if they have a credit score of 500 and a DP of 10% of the home price. People with a credit score of 580 or higher can also get this type of mortgage if they can make at least a 3.5% DP.
Department of Veterans Affairs (VA) Loans: VA loans are benefits offered to members of the military, veterans, and their surviving spouses. This kind of loan comes with a below-market mortgage rate and does not require a DP.
US Department of Agriculture (USDA) Loans: This loan type is designed to boost homeownership in eligible rural areas. Like VA loans, USDA loans are offered at a low rate and don't require a DP.

Loan Terms

The loan term determines whether your interest rate can change as well as how much interest you will pay over the life of the loan. You can choose between the following loan terms:

Fixed-Rate Mortgage

A fixed-interest mortgage has a consistent rate. Because of that, the monthly payment stays the same throughout the life of the loan. While fixed-rate mortgages come with high interest rates, they're popular among buyers because of their predictability.

With most lenders, you can choose from 15-, 20-, and 30-year fixed-rate loans.

Adjustable-Rate Mortgage

Adjustable-rate mortgages (ARM) have an initial fixed interest rate period. Once that period ends, the ARM rate can increase or decrease based on the market.

If you want to pay less during the first few years, getting an ARM may be ideal for you. However, note that your monthly payment amount may increase over time, and fluctuating rates are more challenging to budget for.

Mortgage Refinancing

Mortgage refinancing is when you take out a new loan to pay off your existing mortgage. Most people do this to lower their rates, lengthen/shorten their payment terms, or cash out a portion of their home equity.

Today's Mortgage Rates In Florida

Before you take out a loan, make sure to check the data below to learn more about Florida mortgage rate trends. This will give you an idea of which lender offers the best rate.

We update the data regularly, so visit this page again for the latest mortgage and refinance rates.

Florida Mortgage Rates

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In general, mortgage rates in Florida trend slightly below the national average. If you want a personalized mortgage rate, use the calculator at the top of this page. Simply enter your financial information, and we'll provide you with personalized Florida mortgage rates.

Apart from the interest rate, please make sure to check the annual percentage rate (APR), as well. The APR represents the mortgage rates and other charges, such as loan origination fees. This gives you a more accurate view of how much you have to pay for your loan.

Homebuyer Assistance Programs In Florida

To boost homeownership in Florida, the Florida Housing Finance Corporation offers a few loan programs. Here are some of your options:

The Florida Assist (FL Assist): This program provides eligible borrowers with down payment assistance of $7,500 as well as a 0% interest deferred second mortgage.
HFA Preferred Mortgage: Under this program, borrowers can take out a mortgage at a cheaper rate than government-insured loans. To qualify, you must make a down payment of at least 3% of the home price.
Florida Homeownership Loan Program (FL HLP) Second Mortgage: Eligible borrowers can get up to $10,000 down payment assistance under this program. You can also get a second mortgage at a rate of 3% for a 15-year term.

Steps To Buying Real Estate In Florida

Purchasing real estate in Florida doesn't have to be complicated. Here are the six easy steps to buying a house in the state:

Step 1: Check Your Finances

Paying off a mortgage will take years ⁠–⁠ possibly, even decades⁠⁠. Before you start the process, make sure you're financially prepared to make this commitment.

You should take the following into account:

Down payment: If you're getting a conventional loan, you need to prepare a DP of at least 20% of the property value.
Closing costs: Closing costs and lender fees can add up to 2-5% of the purchase price.
Debt-to-income ratio (DTI): Ideally, you should be using less than 36% of your income on debt.
Credit score: Lenders would want you to have a credit score of at least 620. If you have less-than-ideal credit, you can look at lending companies that offer homebuyer assistance programs for people within your credit score range.

Step 2: Look For Lenders In Florida

The next step is looking for lenders to finance your home purchase. You can use our mortgage tools to compare interest rates from various lenders in the state.

Once you've chosen a lender, request a preapproval letter by submitting your financial documents and personal information. Getting pre-approved shows sellers that you can afford future mortgage payments.

Note that some lenders offer a rate lock for an additional fee. This ensures that the rate on your loan quotation will not change once you're ready to apply for a mortgage.

Step 3: Start House Hunting

Viewing homes in Florida is the most exciting part of the entire home buying process, but it’s also one of the more tedious ones. To make the process easier, look for a realtor who is licensed to practice in the state. Not only will they help you look for properties within your budget, but they can also help you negotiate with sellers in your desired neighborhood.

Once you've found an ideal home in Florida, you can have your real estate agent draft an offer. To outbid other buyers, you may need to make an offer that's above the asking price.

Step 4: Apply For A Mortgage

If a seller accepts your offer, you can begin the formal mortgage application process. You send an application to the lender that gave you the preapproval letter or you can choose another one that offers a better deal. As always, check the data on this page for the latest rates.

Note that if you paid for a rate lock with your original lender, the interest on your initial quotation should not increase.

Step 5: Hire Inspectors

Before you close the sale, hire a home inspector to check the property for any issues. The Florida state government recommends that you get radon testing and termite inspection aside from a general inspection.

If the inspectors find any issues, you can renegotiate with the seller and have them cover any necessary repairs.

Step 6: Close The Sale

Once everything is in order, it's time to close the deal. This involves signing several documents regarding the home purchase.

Keep in mind that, in Florida, you're required to get a real estate attorney to finalize the paperwork. They will review your documents and make sure the contract represents your interests.

After signing, you can get your keys and move to your new home!

How To Get Better Mortgage Rates

If you want to save money on your home purchase, you have to look for ways to lower your mortgage rates. Here are some of your options:

Improve Your Credit Score

Lenders typically offer lower interest rates to borrowers with good credit scores. That’s because they view those borrowers as low risk. So, before you take out a mortgage, try to boost your score first by:

Paying off your credit cards and student loans.
Paying all your bills on time.
Checking your credit report for inaccurate/outdated information.
Maintaining lines of credit (avoid closing old bank accounts and credit cards with a balance).

Buy Discount Points

A simple way to reduce your mortgage rate is by buying discount points or mortgage points. One point can cost 1% of your mortgage amount. So, if you borrow $100,000, for example, you have to pay $1,000 for each point.

The interest rate reduction depends on the lender and the market. You can request sample computations from your lender to see if the cost of buying discount points will lead to bigger savings in the long run.

Choose Shorter Loan Terms

If you choose a shorter loan term, you can get a lower rate. For example, instead of getting a 30-year fixed-rate loan, you can opt for a 20-year mortgage instead. This will also allow you to pay off your mortgage balance faster.

Closing Thoughts

Buying a house in Florida doesn't have to be an unpleasant experience. Just follow the steps on our guide and you'll know exactly what to do to get the property you want. You can also use our mortgage tools to see which lender offers the best rates in the state.

For more advice on getting a home loan, get in touch with Wesley LLC. We have all the mortgage resources you need to get a great deal on your next home!