Florida Mortgage Rates
Compare Florida mortgage rates and choose the best option for your needs.
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Today's Mortgage Rates Trends in Florida
|Product||Rate||1w change||APR||1w change|
|30-year fixed-rate FHA||7.045||3.99%||8.169||3.33%|
|30-year fixed-rate VA||7.094||3.96%||7.336||3.88%|
- 30 Year Fixed
- 20 Year Fixed
- 15-Year Fixed
Mortgage in Florida
The U.S. estate market has been actively growing in recent years, and now most homes are purchased using mortgage loans (use our mortgage calculator to estimate your future expenses). In particular, Florida is among the top states taking the most home loans. This article answers some frequently asked questions concerning mortgage loans in Florida. Moreover, several top lenders operating in the state territory are also highlighted.
Best mortgage lenders in Florida
PenFed Credit Union
Pentagon Federal Credit Union was established in 1935 and has historically specialized in serving members of the armed forces. These days, however, its doors stand open for everybody.
The minimum satisfactory credit score is ‘typically’ 650, according to the PenFed’s website.
The APR amounts to 5.596% for a conventional 15-year, 6.078% for a 20-year, and 6.548% for a 30-year mortgage (given a 700 - 739 credit score and 20% prepayment).
|No lender fees. This may save you a fair amount of money during the closing stage.||No USDA loans. USDA offers federal insurance for mortgages in rural areas with excellent rates, minimal down payment, and a low entry barrier.|
|Allows calculating rates instantly. Other lenders may require you to jump through hoops before letting you know what to expect.||You must be a member of the union in order to apply for a mortgage. Nowadays this is merely an annoyance – all it takes to become a member is to fill out an online form and deposit $5 into a savings account.|
Anchor Home Mortgage
Anchor Home Mortgage is not actually a lender in the conventional sense of the word, but rather a broker that connects various lenders with borrowers. Accordingly, there is no single figure for its credit rates. It operates exclusively in Florida and Georgia. The partner network encompasses over 50 banks and mortgage companies. The required credit score for borrowers seeking conventional loans is 620. This broker’s good business practices have earned it an A+ rating from BBB.
|Aggregates many different programs. This is easier than negotiating with dozens of lenders on your own.||Broker fee. Anchor Home Mortgage charges a flat underwriting fee, typically $1,050.|
|Relatively fast mortgage closing (in most cases, you can close up to within 30 days).||Unpredictable rates. The website does not advertise the partners’ current rates.|
Gateway Capital Mortgage
Gateway Capital Mortgage is another mortgage lender that works in several states. Its website promises extremely lucrative rates: 4.902% for a 15-year mortgage, 5.578% for 20 years, and 5.594% for a 30-year one. It doesn’t detail all the assumptions that go into this calculation, though. The minimum credit score is 620 and the floor for the down payment is 5%. The company was started in 2005 and boasts an A+ rating from BBB.
|Advertises very low rates.||Information on fees charged is untransparent.|
|Tempting offers for first-time home buyers.|
Rocket Mortgage is the top consumer lender in Florida and across the United States. Also known as Quicken Loans, it offers a variety of programs, among them conventional fixed-rate 30-year mortgages under a 7.199% APR, variable rates, FHA, and VA loans. The required credit score is the usual 620.
|Tried and tested. Being the most popular lender comes with an inherent advantage in the form of an abundance of guides, advice, reviews, and similar information. All your questions have probably been answered online, and all potential problems encountered by someone else.||High mortgage rates. In general, Rocket Mortgage promises worse APRs than any of the other lenders reviewed here.|
|Adjustable-rate mortgage loans are available. Starting from a low APR, you can benefit from paying off earlier.||No USDA loans.|
Average Mortgage Rate in Florida from 1978 to 2018
The chart shows average conventional mortgage 30-Year Fixed Rates in Florida.
Source: Federal Housing Finance Agency Monthly Interest Rate Survey
Information about the Housing Market and Real Estate Prices in Florida
|The median home value in Florida||$326,621|
|The income required to buy the median priced home in Florida||$53,516|
|The monthly mortgage payment required to buy the median priced home in Florida||$1,239|
|The median household income for Florida||$64,115|
What factors should be considered when selecting a lender for a mortgage?
A number of factors should guide your decision when choosing a lender. The foremost of these is the APR, whose value subsumes the interest rate, as well as annual fees. The APR can be fixed at the time of closure or reflect the market rate during the lifetime of the loan. The second option is typically cheaper at first, but at the same time riskier. There are also other fees to consider, paid during the mortgage closing. These inflate the closing costs, which can end up amounting to a good portion of the loan amount.
If you don’t own a residence or are low on money, you should check if you are eligible for one of the special programs, more on which below. You may also qualify for down payment assistance in the form of a second mortgage.
Who is the top mortgage Lender in Florida?
With $22.4 billion in volume, Rocket Mortgage comes out on top when it comes to the big players. This is not surprising, given the fact that it is also the biggest consumer lender in the United States. Other strong contenders are, with increasing distance, UWM, Wells Fargo, Pennymac, and Chase. Together they account for more than 1/4 of all mortgages issued in FL.
Florida first-time homebuyer programs
Those who qualify as first-time homebuyers may find government-backed mortgage plans more attractive than conventional ones. They come in several kinds, not all of which are restricted to first-timers.
First, there are the FHA- and USDA-insured loans. These federal agencies insure loans that are made available under special, relaxed conditions. Thus, credit scores as low as 500 are permitted, and the down payment ranges from none at all in case of USDA to 3.5% (or 10% for credit scores below 580) for FHA. This is much lower than normal. In exchange, however, you have to pay the insurance premium, which increases the APR. USDA-backed mortgages are restricted to rural areas; additionally, the borrowers must fall into a low to average income category. FHA is more permissive.
Former servicemen have another option available to them in the form of loans insured by the Department of Veteran Affairs.
Then we have the state-level HFA program. It requires the borrower to be a first-time buyer and also sets an upper limit on income and purchase price. The threshold varies depending from county to county. In most of them, the property value cannot exceed $420,680, but it raises accordingly in the more expensive areas. Unlike federal-ensured loans, offered by virtually all lenders, HFA plans are only made available through a network of accredited partners.
All of the above are 30-year fixed-rate mortgages. If you need more flexibility, you may be better served by conventional (or even non-qualified) offers.
How do I get pre-approved for a house in FL?
You are not going to be taken seriously by home sellers unless you get the mortgage pre-approval. The pre-approval is valid within a certain period of time (usually for 60 days) and serves as a confirmation of the potential borrower’s solvency.
At the pre-approval stage, the lender evaluates the potential borrower's reliability to make mortgage payments by looking at their credit score, proof of employment and income, etc.
In order to receive pre-approval, you need to show your lender that your self-presentation matches reality. You must provide a complete standardized 1003 form (URLA) and attach up-to-date payment stubs, account statements, W-2, tax returns, or other tangible proof of your income. You can do this for any number of lenders.
What do I need to qualify for a mortgage in Florida?
The first requirement concerns your credit score. Typically, 620 is the bare minimum accepted, although it can be higher depending on the lender. Another is a debt-to-income ratio that cannot exceed a certain point, normally 43% (in the best case, for conforming mortgages, it can be as high as 50%). You will also need to provide proof of your income and ability to put up the down payment. The documentation involved will likely include employment information, tax statements, pay stubs, credit reports, as well as proof of identity, and similar. Refer to your lender of choice for more precise conditions.