Current Florida Mortgage Rates
Florida is one of the hottest markets to buy a home, especially for those looking for warmer weather or coastal views. But before you make the jump, it’s important to check the area’s mortgage rates since they can vary by location.
What Are the Current Mortgage Rates in Florida?
As of June 8, 2022, mortgage rates averaged the following in Florida, according to Bankrate data:
- 30-year fixed: 5.49%
- 15-year fixed: 4.65%
- 5/1 ARM: 4.38%
Those rates are slightly higher than the national averages published by Freddie Mac. Nationally, in the week ending June 3, the 30-year fixed-rate mortgage averaged 5.9%, the 15-year fixed-rate mortgage averaged 4.32% and the 5/1 ARM averaged 4.04%.
What Kind of Mortgage Is Right for You?
Related: Best Mortgage Lenders
Any home loan that’s sold to Fannie Mae and Freddie Mac is considered a conventional mortgage. These tend to have stricter requirements than other mortgage types as well as more favorable terms.
Federal Housing Administration (FHA) loans tend to have more lax restrictions on credit score and down payment. This makes homeownership more widely available to borrowers. However, FHA loans often have higher interest rates than conventional mortgages and always require private mortgage insurance (PMI).
Department of Veterans Affairs (VA) loans are available for active-duty military and veterans. These loans have even more favorable terms for those who qualify, including the ability to roll your closing costs into the mortgage.
United States Department of Agriculture (USDA) loans are available for homebuyers in certain rural areas. These can also be financed with no down payment and carry other favorable terms.
What You Should Know About Buying a Home in Florida
Mortgage rates in Florida may be slightly higher than the national average right now, but property taxes can make up for that. In 2020, median property taxes were $1,992, according to data from the U.S. Census. This is lower than the national median of $2,551.
Help for First-time Homebuyers
There are several programs that can help you secure a mortgage as a first-time homebuyer. Keep in mind that a first-time buyer is someone who has not owned a primary residence within the last three years.
Florida’s statewide agency, Florida Housing, offers a loan program and several down payment assistance programs to buyers who meet certain criteria—such as a 640 credit score and having a home purchase price and income below the county limits.