Best Mortgage Rates in Florida

According to Zillow, the housing market in Florida is currently considered “very healthy.” The median listing price in Florida is $289,900, while the Zillow home value index is $227,800.

This is slightly higher than the national median listing price of $275,000 and a home value index of $220,100.

There has not been much significant change on a month-to-month basis, but the increase over the last few years is somewhat surprising. In January of 2012, the median listing price in the U.S. was only $180,000, while in Florida it was $179,000; there has been an increase of approximately $100,000 in just short of seven years.

If you are looking to purchase a house in Florida, you should be aware that purchase and refinance rates are impacted by interest rates on a national scale. However, local economics directly influence rates as well. Some of these factors include Florida state laws, average home value, foreclosure rates, and competition among lenders.

In addition to these factors, there are several pieces of information that determine mortgage and refinance rates on a personal level. In this article, we’ll go over some of these elements and offer advice regarding how to get the best mortgage rates in Florida.

Elements Affect Mortgage Rates & Refinance Rates in Florida

There are plenty of factors that influence mortgage and refinance rates in Florida. Understanding these elements can be the difference between saving and spending thousands of dollars every year.

Credit Score

This is one of the major factors that determine if you can qualify for a home mortgage loan and the kinds of rates you can expect. Prospective buyers with higher credit scores are considered to be low risk, which makes them more likely to receive lower mortgage rates.

The lower your credit score, the less likely you will be to qualify for a loan. This is also the primary factor that determines your refinance rates. It is possible to get a mortgage with, but a lower score makes it substantially more difficult to get a loan.

Down Payment

When looking to qualifying for a mortgage, you should understand how your down payment affects your rates. Generally, a larger down payment leads to a lower interest rate, since buyers with more stake in the property are considered low risk. If you are able to put down 20 percent or more, you may notice significantly lower rates than if you put less than 20 percent down.

Loan Term

The duration of your loan is a significant factor that lenders use when deciding their mortgage rates. Loans with shorter terms typically have lower interest rates and overall costs but may have higher monthly payments. Homebuyers with a comfortable cash reserve may want to take on a short-term loan, while buyers with fewer savings may benefit from paying less over a longer period of time.

Type of Refinance

Just as a conventional mortgage, the refinance loan you opt for will determine your rate. If you are considering a rate-and-term refinance, which Zillow reports as the most, you will be offered different rates than you would if you were shopping for a cash-out or cash-in refinance loan.

When applying for refinancing, explore different options to determine which loan type offers rates that make the most sense for your finances.

It doesn’t only benefit borrowers to understand these elements. To find low rates on mortgage loans and refinance options, comparing offers from different lenders is a must.

How to Get the Best Mortgage & Refinancing Rates in Florida

To get the best mortgage rates and refinance options in the state of Florida, you have to shop around. Too many Americans fail to shop around for mortgage rates with multiple lenders, yet doing so can save them tens of thousands of dollars over the term of their mortgage. If you are interested in shopping around for rates but don’t know where to start, you might consider the following steps:

1. Consider different mortgage and refinance types: There is a lot of value in considering different types of mortgage and refinance options. Your rate can change as a result of the loan type and term you opt for. The best type of purchase or refinance loan may not necessarily be the cheapest or the same for every borrower. While some may benefit from a fixed-rate mortgage, others might fare better with a jumbo loan. Make sure you do your research on the various types of mortgage options and know exactly what you’re paying for before making a decision.
2. Contact multiple lenders: Getting the best rates on your purchase or refinance loan might require you to get on the phone with a few loan officers and do your own research. If you only receive rates from one or two lenders, you may be missing out on more affordable options. When speaking to different agents, you may also want to inquire about any perks lenders might be willing to offer you to help you close the deal. Some lenders may be willing to roll closing costs into your monthly loan repayments or eliminate some underwriting fees.
3. Factor in additional costs: Just because you see a low rate advertised does not mean it’s the cheapest option for you. Once the fees are added in, this rate might be significantly higher than other loans you’ve considered. To make sure you aren’t surprised when presented with the final numbers, ask the lender about potential underwriting costs, broker fees, prepayment penalties, and closing costs. They should also provide you with a Loan Estimate Form and Closing Disclosure form within a few days of submitting your loan application, which provide an approximation of the costs associated with your purchase or refinances loan.

Recommended Mortgage Companies in Florida

There are plenty of lenders that offer mortgages in Florida. When you take out a home loan, make sure you shop around and compare quotes from different lenders to ensure you’re getting the best deal possible.

Some of the top mortgage lenders in Florida include:

Quicken Loans

This lender is our #1 choice because of its 90-Day RateShield™ Approval benefit. This feature protects you if home mortgage rates go up within 90 days.

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LendingTree

LendingTree offers a convenient perk that many other lenders do not: immediate quotes online. You won’t need to dial a number or wait on hold to get the information you’re looking for.

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J.G. Wentworth

With an A+ rating with the Better Business Bureau, J.G. Wentworth is a desirable option. However, they typically only offer mortgages to buyers with a credit score of 620 or higher.

NBCK Bank

This bank offers many different types of mortgages, including VA and FHA loans, in all 50 states. They have origination, processing, underwriting, closing, and funding services on site, making them an all-in-one lender.

NASB

This BBB-accredited lender offers an online financial resource center that can help you understand the latest market trends and provide personal financing advice.

CrossCountry

They pride themselves on their excellent customer service and a wide selection of options for homebuyers. CrossCountry also offers a variety of refinance programs.