Florida Mortgage Rates
Florida mortgage rates are slightly below the national average, but you can expect to see a higher cost for homeowner’s insurance and middle of the road stats across most other metrics.
Buying a home in Florida may not be as expensive as you might think. Unlike some other major tourist destinations, Florida mortgage rates and home prices are not astronomically higher than the national averages. Compare national mortgage rates to see how the stack up against Florida mortgage rates.
Mortgage and refinance interest rates in Florida are currently slightly lower than the national average. Home prices, monthly ownership costs and cost of living metrics are all right on par with the national average, which — while, as a whole, Florida is not cheaper than other places — could be seen as a positive when you consider the allure of living in the state. Overall, buying a home in Florida could be a great option for people looking to head South and enjoy some fun in the sun.
Current Florida Mortgage Rates
|Product||Rate||Rate Last Week|
|30-Year Fixed Rate||3.070%||3.110%|
|30-Year FHA Rate||2.880%||3.130%|
|30-Year VA Rate||2.780%||3.060%|
|30-Year Fixed Jumbo Rate||3.110%||3.160%|
|20-Year Fixed Rate||3.090%||3.120%|
|15-Year Fixed Rate||2.700%||2.720%|
|15-Year Fixed Jumbo Rate||2.760%||2.790%|
|5/1 ARM Rate||3.180%||3.160%|
|5/1 ARM Jumbo Rate||N/A||N/A|
|7/1 ARM Rate||3.240%||3.260%|
|7/1 ARM Jumbo Rate||3.470%||3.500%|
|10/1 ARM Rate||3.500%||3.720%|
Rates data based on Tallahassee, Florida as of 7/31/2020
Getting a mortgage in Florida
If you’re interested in getting a mortgage in the Sunshine State, there are several important factors to consider. The median home price and median monthly ownership costs in the state are right on par with the national average. That being said, there is a major disparity between different cities in the state, with some offering cheap housing and cost of living and others offering expensive housing and living costs well above the national median.
Mortgage rates in Florida as a whole are slightly below the current national average, offering savings on the biggest expense of homeownership. The average cost of homeowner’s insurance is high due to hurricane and other natural disaster insurance, making Florida 14th highest in the country for insurance coverage costs. The state ranks the 26th least expensive in the country for cost of living, landing it right in the middle of the road.
- Median home price: $196,800
- Average 30-year fixed rate: 3.55%
- Median monthly ownership cost: $1,466
- Homeownership rate: 65%
*Rates and data as of May 5, 2020. Assuming 3.72% APR national average on a 30-year fixed-rate mortgage.
Florida state mortgage rate trends
Over the last two years, Florida mortgage and refinance rates across all products have largely followed the interest rate trends of the rest of the country. In May of 2018, the average interest rate on 30-year fixed-rate loans in Florida was just above 4.25%. Shortly thereafter, interest rates in Florida climbed to an average of about 4.85% before starting a downward trajectory that has held steady through today.
The one bump in the downward trend came in early 2020, when interest rates on 30-year fixed-rate loans climbed quickly to around 4.25% before falling again and continuing the downward trajectory. All other fixed-term lending products in Florida and most adjustable-rate mortgages (ARMs) followed suit. The one exception was the 3/1 ARMs, which was on a volatile path of spikes and drops and stopped at a baseline just above the 30-year fixed rate.
Florida state current mortgage rates
You can currently get a 30-year fixed-rate loan in Florida with an interest rate of about 3.55%. This could offer some savings when compared to the average national interest rate of 3.72%. Your exact savings will depend on your creditworthiness and loan terms, though, as these rates assume a 20% down payment and a 740 or higher credit score.
Shorter-term fixed-rate loan interest rates in Florida are somewhat lower, with 20-year rates at about 3.45% and 15-year rates just under 3%. The interest rates for 10-year loans are typically close to the 15-year interest rates, but have been a little higher as of late. While 7/1 and 5/1 ARM loan interest rates have been volatile over the years, the two types of loans currently have average interest rates of 3.15% in Florida.
Most and least expensive places to live in Florida
Least expensive places to live in Florida
1. Brooksville, FL — A small country town between Orlando and Tampa known as Brooksville takes the cake for the least expensive place to live in Florida. While there may not be a lot going on in the city outside of farming, the cost of living makes up for it. The median value of an owner-occupied unit in the area is only $49,000 and the median gross rent is $806.
2. Palatka, FL — If you’re looking for a cheap place to live, you may want to check out Palatka. The median value of a home in the area is only $78,100. If you’re looking to rent, recent data shows a median gross rent of $693.
3. Live Oak, FL — You can expect to catch a lot of breaks when it comes to the cost of living in Live Oak. The median price of a home in the area is only $88,700. The monthly costs of homeownership are also quite low at $975, and the median gross rent in the area is $675, according to the most recent Census data.
4. North Fort Myers, FL — While many parts of Florida have high housing costs, North Fort Myers comes in 58% below the national average. The median home price in the city is $145,823 and the median cost of rent is only $458.60. Utility costs are also 12% below the national average.
5. Orange City, FL — This Florida city comes in 6% below the national average for overall cost of living. The biggest savings come via housing, which is 17% below the national average. The median home price in the city is $288,704 and the median rent is $904.38.
Most expensive places to live in Florida
1. Windermere, FL — This cost of living in this Florida city, which is outside Orlando, comes in at 34% higher than the national average. The biggest expense in the area is housing, which is 101% over the national average. The median home price in the area is $698,692 and the median rent is $2,189.
2. Naples, FL — One of the most expensive cities to live in Florida is Naples, which is on the west coast of the state. The median price of a home in the area is $941,700 and the median gross rent is $1,343. The median monthly ownership cost in the area is $3,350.
3. Coral Gables, FL — Expect to pay a pretty penny to live in sunny Coral Gables, especially when it comes to housing. The median value of a home in the city is $795,600 and the median gross rent is $1,583. The homeownership rate in the city is on par with the national average, though, at about 64%.
4. Miami Shores, FL — The cost of living in Miami Shores is currently 30% higher than the national average. The biggest expense is housing. At 97% over the national average, you can expect to see a median home price of $684,636 and a median monthly rent of $2,145.
5. Key West, FL — At the southern tip of Florida sits a tourist destination that is not easy on the wallet for people who want to live there. The median price of a home in Key West is $578,100 and the median gross rent is $1,793. Homeownership rates in the area are low at 40.5%.
Florida state mortgage resources and intricacies
The Sunshine State has an effective property tax rate of 0.97%, which puts the state at 23rd in the nation. Remember, though, that property tax rates are not universal across the state and will vary based on what county or city you choose to buy in.
For prospective homebuyers looking to purchase in Florida, several great online resources exist to help you along the way. One of the best resources to check out is the HUD website for the state. You should also reach out to a realtor or mortgage banker licensed to work in the state of Florida. They can help walk you through the mortgage application and the refinancing or homebuying process. Each state does things a little differently and these experts can help.
The final word
Because of the mortgage rates, now might be an affordable time to pick up a home in one of the most sought after destinations in the country. Home prices and cost of living vary greatly by city, though, so make sure to research the different areas you might be interested in living.