Getting a Mortgage in Florida

If you’re interested in getting a mortgage in the Sunshine State, there are several important factors to consider. The median home price and median monthly ownership costs in the state are right on par with the national average. That being said, there is a major disparity between different cities in the state, with some offering cheap housing and cost of living and others offering expensive housing and living costs well above the national median.

Mortgage rates in Florida as a whole are slightly below the current national average, offering savings on the biggest expense of homeownership. The average cost of homeowner’s insurance is high due to hurricane and other natural disaster insurance, making Florida 14th highest in the country for insurance coverage costs. The state ranks the 26th least expensive in the country for cost of living, landing it right in the middle of the road.

• Median home price: $196,800
• Average 30-year fixed rate: 3.55%
• Median monthly ownership cost: $1,466
• Homeownership rate: 65%

*Rates and data as of May 5, 2020. Assuming 3.72% APR national average on a 30-year fixed-rate mortgage.

Florida state mortgage rate trends

Over the last two years, Florida mortgage and refinance rates across all products have largely followed the interest rate trends of the rest of the country. In May of 2018, the average interest rate on 30-year fixed-rate loans in Florida was just above 4.25%. Shortly thereafter, interest rates in Florida climbed to an average of about 4.85% before starting a downward trajectory that has held steady through today.

The one bump in the downward trend came in early 2020, when interest rates on 30-year fixed-rate loans climbed quickly to around 4.25% before falling again and continuing the downward trajectory. All other fixed-term lending products in Florida and most adjustable-rate mortgages (ARMs) followed suit. The one exception was the 3/1 ARMs, which was on a volatile path of spikes and drops and stopped at a baseline just above the 30-year fixed rate.

Florida state current mortgage rates

You can currently get a 30-year fixed-rate loan in Florida with an interest rate of about 3.55%. This could offer some savings when compared to the average national interest rate of 3.72%. Your exact savings will depend on your creditworthiness and loan terms, though, as these rates assume a 20% down payment and a 740 or higher credit score.

Shorter-term fixed-rate loan interest rates in Florida are somewhat lower, with 20-year rates at about 3.45% and 15-year rates just under 3%. The interest rates for 10-year loans are typically close to the 15-year interest rates, but have been a little higher as of late. While 7/1 and 5/1 ARM loan interest rates have been volatile over the years, the two types of loans currently have average interest rates of 3.15% in Florida.