Current Florida Mortgage Rates

It depends on the type of loan you are applying for. For instance, if you are getting an FHA loan, it doesn’t change your note rate whether your put the minimum 3.5% down or 20% down payment. On the other hand, if you are getting a conventional mortgage, there is a slight difference in the cost associates with the mortgage rate for a borrower putting 5% down payment versus another borrower that puts 20% down. Finally, on a conventional mortgage putting 20% down helps you avoid the PMI which results in a lower annual percentage rate (APR).

One of the most important factors that determines your mortgage rate is your credit score. The lower the credit score, the higher the interest rate. Usually any borrower with a credit score of 740 and higher receives the same rate as someone with a credit score of 800. On the other hand, below 740 credit scores, the lenders typically break up the rate adjustment every 20-point increment. For instance, a borrower with a credit score of 700 will have a higher rate than a borrower with a 720 credit score. This does not mean that a borrower with a 680 credit score cannot get the same rate as a borrower with an 800 score.

No. The interest rate for a conventional mortgage is different than an FHA loan or a VA loan. Depending on your credit score and the amount of down payment, the effective rate otherwise known as annual percentage rate (APR) will vary on each loan type. For instance, a borrower with a 620 credit score putting 5% down payment on a conventional mortgage loan will have a much higher APR than a borrower obtaining an FHA loan with the same score and down payment. This is primarily because the mortgage insurance (PMI) on a conventional mortgage is score driven and much higher for borrowers with low credit scores compared to FHA mortgage insurance which is not score driven meaning that a 620 credit score borrower will have the same mortgage insurance factor as someone with a 780 credit score.

Most people hate adjustable rate mortgages due to uncertainty of how much their mortgage payments can fluctuate when the teaser rate expires. Having a fixed rate mortgage gives borrowers a peace of mind their principal and interest portion of their mortgage payment always stays the same. This is particularly important for fixed income borrowers. On the other hand, adjustable rate mortgages can be attractive for borrowers with risk appetites and certainty that they will either pay off their mortgage fully or sell the property before the teaser rate starts to adjust.

The note rate on a VA home loan is usually .25-.5% better than a conventional mortgage rate. This is because the risk associated with a VA mortgage is much lower than any other mortgage since it is Guaranteed by the Veterans administration.

Several factors affect refinance mortgage rates. For instance, rate/term refinance rates are much lower than cash out refinance transactions. Also, shorter term mortgages such as 15 year fixed have almost .5% lower mortgage rates than a 30 year fixed mortgage. Also, borrowers that have a lot of equity in their home get a much lower mortgage rate than borrowers with little or low equity.

Closing costs can only be rolled into the loan when refinancing a mortgage. When purchasing a home, you can either convince the seller to cover closing costs as a seller concession or if you are working with a low cost lender or broker you can look at rate options that provide lender credit to cover all or part of the closing costs. If none of the stated options work, then you will have to pay for the closing costs out of pocket. Typical closing costs like doc stamps and title charges and pre-paid items such as home insurance and property tax equate to about 3% of the purchase price.

Florida  Mortgage rates for single family homes are usually much lower than rates on a condo. Also, single family homes have less restrictions on financing compared to a condo which requires HOA approval and review of condo bylaws, HOA master insurance and occupancy ratios, etc.

Mortgage rates vary by loan terms. Lower the term, lower the rate. For instance, a 15 year mortgage has a much lower rate than a 30 year mortgage. There is usually a half a percent rate difference between the two mortgages. On the other hand, 20 year mortgage rates are usually an eighth of a percent lower that 30 year mortgage rates.

Mortgage rates are lower for home buying purposes compared to getting a cash-out refinance mortgage to consolidate debt or do home improvements.

Risk plays a big factor on mortgage rates. The more equity you have in your property the less risk for the lender when it comes to conventional mortgage loans. For instance, if you are trying to get a loan for cash-out refinance, your interest rate is much better when the loan-to-value is under 60% of the property value.

Conventional mortgage loans offer the lowest mortgage rates when the homebuyer is putting 40% down payment based on the purchase price. Other loan programs like FHA loans do not offer a lower rate based on the amount of down payment or property value. On VA loans where the borrower is exempt from the VA funding fee due to disability, the mortgage rate works out to be even lower than the best conventional mortgage rate regardless of the amount of down-payment or home value.