Florida Mortgage Calculator
Use the Mortgage Readiness Calculator to help you determine if you are ready to apply for a mortgage to buy your first home, dream home, investment property, or vacation home
Florida Mortgage Calculator: See How Much Home You Can Afford
Overview of the Florida Housing Market
Florida offers a unique housing market with diverse options across the state, from affordable inland communities to high-end beachfront properties. However, buying a home in Florida comes with some important considerations:
- Higher homeowners insurance premiums due to hurricane risks
- Competitive mortgage rates for buyers with strong financials
- Moderate property taxes, with an average effective rate of 0.80%, below the national average
Ready to see how much home you can afford in Florida? Use our Florida mortgage calculator below to get an estimate of your monthly payments, including property taxes and insurance.
Additional Financial Considerations
When budgeting for a home in Florida, it’s important to factor in more than just your monthly mortgage payment. Here are a few additional costs to keep in mind:
- Property Taxes: Florida’s average property tax rate is 0.80%, which varies by county. For example, Miami-Dade County’s rate differs from Orange County’s.
- Homeowners Insurance: Florida homeowners insurance is higher than the national average due to hurricane risks, with annual premiums often reaching $1,800.
- Flood and Sinkhole Insurance: If you live in a high-risk flood zone or near a known sinkhole area, you’ll need additional coverage.
Florida Mortgage Rates Today
| Mortgage Product | Rate | Last Week | Change |
|---|---|---|---|
| 30-Year Fixed | 5.38% | 5.50% | -0.12 |
| 15-Year Fixed | 4.38% | 4.50% | -0.12 |
| 5/1 ARM | 5.75% | 5.75% | 0.00 |
| 30-Yr Fixed Refi | 6.50% | 6.31% | +0.19 |
| 15-Yr Fixed Refi | 5.88% | 5.63% | +0.25 |
Factors That Influence Your Florida Mortgage Payment
Property Taxes: Depending on the county, property taxes can significantly affect your monthly mortgage payment. In high-demand areas like Miami or Orlando, taxes may be higher than in more rural parts of the state.
Homeowners Insurance: Florida is prone to hurricanes, which can push insurance premiums higher than average. Insurers also consider whether your home has wind-resistant features or is located in a flood zone.
Flood and Sinkhole Insurance: Many parts of Florida are susceptible to floods and sinkholes. In some cases, these policies are required by lenders if you live in a high-risk area.
Closing Costs in Florida
Before purchasing a home in Florida, it’s crucial to understand the typical closing costs, which range between 2% to 5% of the home’s purchase price. These include:
- Mortgage Origination Fees: Charged by the lender for processing the loan.
- Title Insurance: Protects you and your lender from claims against your property.
- Transfer Taxes: Florida charges $0.70 per $100 for real estate transfers.
- Documentary Stamp Tax: This tax applies to both the mortgage and the deed transfer.
- Attorney and Inspection Fees: While not mandatory, these services ensure the legality and safety of your property.
How to Lower Your Monthly Payment
There are several strategies to make homeownership in Florida more affordable:
- Increase Your Down Payment: A higher down payment reduces the loan principal and can lower your interest rate.
- Shop for Better Insurance Rates: Comparing homeowners insurance rates can save you hundreds of dollars annually.
- Explore Loan Options: Consider adjustable-rate mortgages (ARMs) or FHA loans if you’re a first-time buyer.
Frequently Asked Questions (FAQs)
What is the minimum down payment required for a mortgage in Florida? Most conventional loans require a 20% down payment, but you can qualify for as low as 3% with FHA or VA loans.
Are there any first-time homebuyer programs in Florida? Yes, Florida offers down payment assistance, mortgage credit certificates, and affordable loan options through the Florida Housing Finance Corporation.
Is homeowners insurance required in Florida? Yes, all Florida homeowners must have homeowners insurance, which typically includes windstorm damage. Additional flood or sinkhole insurance may be required depending on your location.