Florida Mortgage Rates

Your mortgage rates is used to determine your principal and interest payment. Your annual percentage rate is the true cost of the loan once you consider the origination charges and PMI factors associated with your home loan. The higher the origination charges for a mortgage rate and the higher the pmi factor, the higher the APR on a mortgage. Therefore, whenever your see a rate advertised you will also see an APR next to the rate. When comparing different loans its important to compare the APR as well.

Apply for a mortgage with three different mortgage lenders, mortgage brokers or banks and compare their rates by obtaining an official loan estimate on the same exact day since mortgage rates change daily. Pay attention to the adjusted loan origination charges associated with each rate quote and the annual percentage rate to determine which quote gives you the best effective rate.

No. The mortgage rates 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.

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.

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).