Mortgage rates in Florida
Quick insights
- Mortgage rates can shift frequently, so it’s important to check current mortgage rates in the specific Florida market you're interested in—whether it’s Miami, Tampa or Orlando.
- Mortgage rates in Florida may vary based on loan type, local housing trends and national economic conditions like inflation or changes to the federal funds rate.
- Your mortgage interest rate affects how much you pay over time and directly impacts your monthly housing costs, making the rate a key factor in both short-term budgeting and long-term affordability.
From waterfront condos in Miami to cozy homes in Orlando and beachside properties along the Gulf Coast, Florida offers a wide range of housing options—and mortgage rates can play a crucial role in how affordable those options may be. In such a diverse state, rates may vary by region and can influence both your monthly payments and long-term costs. While interest rates are often shaped by a mix of factors, you can understand what causes changes to stay informed.
In this article, we’ll walk through how mortgage rates work in Florida, what could influence them and where to explore rate information as you prepare to buy or refinance.refinance-hl000061
How to find Florida mortgage rates
Mortgage rates can vary depending on where in Florida you’re purchasing a home. To find current mortgage rates for a specific area, visit our current mortgage rates page and enter the five-digit zip code where you’re looking to buy. Our rate table is updated every weekday, Monday through Friday, so you’ll have access to the latest rates available.
If you’re considering refinancing, be sure to check out our mortgage refinance rates page, as those rates may differ from new purchase loans. A local Home Lending Advisor in Florida can offer personalized guidance, or you can start the mortgage prequalificationec-mortgage-prequalification-preapproval or preapproval process to better understand the loan options available for your financial profile and goals.
U.S. mortgage rate trends
Current 30-year mortgage rates have been between 5% and 10%.ec-30-year-fixed-rate-ma Here are some annual averages of 30-year fixed-rate mortgage rates since 1971:ec-30-year-fixed-rate-ma
- 1974: 9.19%
- 1982: 16.04%
- 1990: 10.13%
- 1998: 6.94%
- 2006: 6.41%
- 2014: 4.17%
- 2020: 3.11%
- 2024: 6.72%
Factors affecting mortgage rates in Florida
Mortgages rates in Florida can be influenced by a combination of personal financial factors and broader market conditions. While some elements are unique to each borrower, others reflect trends in the national economy or local housing markets.
Personal factors that may influence your mortgage rate
When applying for a mortgage in Florida, your financial background—along with factors like credit history, income stability and the size of your down payment—can play a major role in shaping the rate you’re offered. While broader economic trends may affect mortgage rates across the board, loan providers often review your individual profile to assess potential lending risk.
- Credit health: Your credit history and score can help loan providers gauge how responsibly you manage debt. A strong track record could lead to more competitive rate offers, while missed payments or high credit balances might result in higher rates.
- Job and income consistency: A steady employment history and reliable income can offer reassurance to mortgage providers. This stability may support better loan terms and smoother approval.
- Monthly debt load: Loan providers often review how much your income is already committed to debt payments. A lower debt-to-income (DTI) ratio may indicate better financial balance and increase your chances of securing a more favorable rate.
- Savings and financial reserves: Loan providers may consider your overall financial strength, such as emergency savings, investments or other assets. Having more financial cushion can help present you as a lower-risk borrower.
- Employment: In Florida, the length and type of employment can indicate financial stability. Long-term or permanent positions could positively influence your mortgage rate. In contrast, short-term or irregular work might raise concerns with mortgage providers and potentially lead to higher rates due to perceived risk.
- Other factors: Lenders in Florida also evaluate your full financial picture, including loan amount, the size of your down payment, the type of property you’re purchasing and your overall DTI ratio. All of these details help determine risk-based pricing and, ultimately, your interest rate.
Economic trends and market forces
Mortgage rates in Florida are heavily influenced by national economic trends, especially policy decisions made by the U.S. Federal Reserve (commonly referred to as “the Fed”). When the Fed raises the federal funds rate, the rate banks charge each other to borrow money; mortgage lenders often follow suit by increasing their rates. Keeping an eye on Fed announcements can help you anticipate changes in Florida mortgage rates.
Mortgage rates by loan type
Your mortgage rate in Florida will also depend on the type of loan you choose. Each option comes with unique terms and implications:
- Fixed-rate mortgages: With this option, your interest rate stays the same for the entire length of the loan. That means your monthly principal and interest payments remain predictable.
- Adjustable-rate mortgages (ARMs): ARMs start off with a set interest rate for an initial period, often lower than fixed-rate options. After that, the rate can change at scheduled intervals based on the market. This may appeal to some homebuyers who expect to move, sell or refinance before the adjustment period kicks in.
- Federal Housing Administration (FHA) loans: Backed by the Federal Housing Administration, FHA loans are a great option for many first-time homebuyers and individuals with smaller down payments. This type of loan often comes with lower rates and more lenient credit requirements.
- Veteran’s Affairs (VA) loans: Reserved for eligible veterans and active-duty service members, VA loans are supported by the U.S. Department of Veterans Affairs. VA loans usually have lower interest rates and no down payment requirement.
- Jumbo loans: If you’re eyeing a high-value home that exceeds standard loan limits, a jumbo loan may be needed. Because they fall outside conforming guidelines, lenders typically apply stricter criteria and higher rates when reviewing applications for a jumbo loan.
How rates affect affordability in Florida
Mortgage rates play a significant role in shaping home affordability. Even small rate shifts can impact monthly payments and total loan costs. A lower interest rate reduces what you pay, not just month-to-month, but also across the entire life of your loan. Your mortgage term (such as 15 or 30 years) also affects how much you’ll pay over time.
To better understand how these factors work together, tools like mortgage affordability calculators or conversations with mortgage professionals can provide helpful guidance.
Interest rate example
Let’s say you take out a mortgage loan for $389,000 with a 20% down payment and 30-year term. A 20% down payment on a $389,000 loan is $77,800. Therefore, the loan amount after the down payment would be $311,200 ($389,000 – 77,800).
Formula: M = P[r(1+r)^n]/[(1+r)^n – 1]
- M is your monthly payment.
- P is the principal loan amount (purchase price minus down payment)
- R is your monthly interest rate (annual interest rate divided by 12)
- N is number of payments (months you will be paying the loan)
With some sample calculations using the formula above, you can see how the interest affects the payment and total costs:
- With a 6% interest rate: Estimated monthly costs would be $1,870 with a total cost of $671,690 over the lifetime of the loan. The total interest paid would be approximately $360,490.
- With a 7% interest rate: Estimated monthly costs would be $2,070 with a total cost of $745,350 over the lifetime of the loan. The total interest paid would be approximately $434,150.
In summary
If you’re planning to buy a home or refinance in Florida, connecting with a Home Lending Advisor can be a good first step. They’ll provide tailored insights into the Florida housing market, help you navigate current mortgage rates and offer guidance that fits your financial goals. With the right support, you can move forward with confidence and get one step closer to owning a home.
