See Mortgage Rate Quotes for Your Home
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In Florida, the average rate for a 30-year fixed-rate mortgage is currently 3.97%. The 15-year fixed-rate average is 3.45%, while the 5/1 adjustable-rate mortgage (ARM) average is 3.62%.
|Loan type||Average rate||Weekly change||3-month change|
|Loan type||Average rate||Weekly change|
Mortgage rates can change from week to week, which makes it harder to know when you should lock in your rate. To understand more about comparing loan offers, read our analysis of Florida's home loan rates and how they vary by company and location.
How Much Do Florida Mortgage Rates Vary?
The highest and lowest mortgage rates in the Sunshine State cover a range of 150 basis points. The low rate for a 30-year mortgage was 3.38%, compared to a high of 4.88%. To show what this significant difference can mean for your budget, we applied these rates to real dollar amounts and calculated the difference in interest.
Taking a home value of $200,000 as an example, we found that the lowest and highest rates in Florida resulted in a difference of almost $50,192 in lifetime interest. Each month, the principal and interest you pay at the highest rate would be $140 more than the lowest rate. While your own numbers will vary, this example demonstrates the potential value of a lower mortgage rate. You can start your own search for rates with the tool above.
Comparing Home Loan Rates by Bank
Our survey of mortgage rates in the Sunshine State also covered rates offered by each major bank. The following graph visualizes the variations among some of Florida's largest mortgage lenders.
While these rates may change from day to day, it's clear from the data that there's a fair amount of variation from bank to bank. Based on the theoretical assumptions used to obtain these estimates, a mortgage at the lowest rate would cost $708 per month in principal and interest, which is significantly less than the monthly cost of $848 at the highest rate.
Are Home Loan Rates Rising in Florida?
For 2019, mortgage rates in Florida and across the rest of the country might not rise as much as previously anticipated. The Federal Reserve's Open Market Committee (FOMC) recently announced that it would adopt a data-dependent "wait-and-see" approach to future rate hikes, which may potentially indicate a reduction in the number of rate hikes we saw in 2018.
The target federal funds rate represents the interest rate that banks pay to borrow money to fund their operations. Due to the correlation of the federal funds rate to long-term mortgage rates, the FOMC's periodic announcements are viewed as indicators of future rate trends. There may be slight disconnects between mortgage rates and the fed funds rate due to changes in consumer demand, credit concerns and incremental costs incurred through the lending process.
For homebuyers in Florida, the news of a possible stabilization in rates creates some breathing room for the upcoming homebuying season. In times of rising rates, shoppers often rush to secure financing before interest rates rise too high. With the FOMC announcing its intent to base future rate hikes on economic data, buyers can take comfort in the knowledge that mortgage rates are more likely to remain steady while they shop for a home.
Comparing Home Loan Rates in Florida's Cities
Besides considering the change in rates over time, we also considered the relationship between mortgage rates and geography. Interest rates can vary slightly between different cities within the same state, such as Jacksonville and Sarasota. If you're thinking about moving to another city, the table below shows mortgage rates and median property values in Florida's largest metro areas.
|MSA||Average mortgage rate||Median home value||Estimated monthly cost|
|Miami-Fort Lauderdale-West Palm Beach||4.61%||$259,731||$1,067|
The differences we saw weren't enormous. Mortgage rates in Florida's biggest cities ranged between 4.60% and 4.70%. Relatively speaking, the purchase price of your home will be a much bigger influence on your final mortgage expenses. Still, there are a few things you can adjust in your mortgage shopping to make sure your costs fit your financial situation. Consider the following example to see a cost comparison of different loan types and terms.
Evaluating Mortgage Options: An Example in Miami
Miami is the most populous and valuable metropolitan market for real estate in Florida, with a median owner-occupied home value of nearly $260,000. While this is considerably higher than the state and national average, there are a number of different loan options you can choose in order to control the cost of buying a house.
As a baseline, we begin with the standard picture of a 30-year fixed rate mortgage at Miami's median home value, with a traditional 20% down payment and an interest rate of 4.61%. In this picture, your monthly principal and interest equal $1,068 while the total cost of interest on the loan is $176,316. Depending on your preferences, there are several ways to adjust both these figures.
|30-year fixed||FHA 30-year||5/1 ARM|
If it's unrealistic for you to save up a down payment of 20%, you may need to look at loan programs that allow for smaller down payments such as FHA loans. Such programs can drop your minimum down payment to a 3.5% threshold—in this case, $9,100 compared to $52,000. Of course, you'll have to make up for the difference over time with higher payments and more interest. In our example, switching to a 3.5% down payment mortgage would raise your monthly costs by about $221, while lifetime interest would increase by $36,366.
If you plan to move within a few years and repay the mortgage by selling the house, the low initial rates on an adjustable-rate mortgage (ARM) could give you a way to shrink expenses. Based on the average rate of 4.05% for a 5/1 ARM in Florida, you'd pay $40,225 of interest in the initial five-year period. This represents a savings of $5,752 compared to a regular fixed-rate loan. However, be aware that ARM rates can rise after the initial period, threatening your savings.