What You Need to Know About Mortgage Rates in Florida

by Vickie Ventresca and Angelo Ventresca 02/16/2020

Photo by OpenClipart-Vectors via Pixabay

Mortgage rates in Florida are some of the best in the nation. The housing market is growing so fast that builders and sellers are seeing homes come off the market just days after the property has been listed. When it comes time to buy your home in Florida, it's a good idea for you to know how the state-specific mortgage rate works. What you learn may end up helping you save money for years to come. Here are the key factors regarding mortgage rates that you will want to know. 

Calculation Method

When you make a payment on your mortgage in Florida, you will find that some money goes towards the principal of the loan and the rest is for interest. In some cases, the payment may include escrow money, but the idea is still the same.

When the interest is calculated the length of the loan, the amount, type of loan and payment time frame all affect how much interest is charged based on the percentage that you agree to. To help you save money on your loan make extra principal payments. This will cut down on the amount of interest you will pay over the life of your loan in Florida.

Fixed or Adjustable Rates

Florida's lenders can issue a home loan as a fixed-rate loan or one that has an adjustable rate. There is a big difference between the two different types. The fixed-rate loan has an interest rate that does not change. No matter what happens with the national average your rate will not change. An adjustable rate will fluctuate under certain conditions. If the national mortgage rate drops, you can see your rate go down as well. But it can also increase. There is a certain amount of uncertainty that comes with an adjustable-rate mortgage. 

Loans that Charge Interest Only

This feature comes down to the terms of your loan. In Florida, some lenders are allowed to charge you only the interest you owe per month. The danger of this kind of mortgage is that the principal amount never changes unless you pay more than the interest being charged to you. You'll typically see this type of rate on home equity loans. These loans are usually set up to be interest-only for a certain amount of time before they convert to a repayment plan that would include the principal.

Mortgage Rates and Your Taxes

The great thing about living in Florida is that there is no state income tax. This means you only have to file federal taxes, and your mortgage rate is deductible on your taxes. This, in turn, lowers your taxable income and saves you money on your taxes. Having a mortgage with a good rate can save you thousands of dollars over the life of the mortgage. 

Your mortgage rate can be used for your benefit or it can benefit the lender more. When choosing a mortgage rate in Florida you have options and the right to shop around for the best rate that fits your financial budget.

About the Author

Vickie Ventresca and Angelo Ventresca

We are Your Brother and Sister Team for Real Estate in Southwest Florida.

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Vickie Ventresca


Telephone: 239-390-4050 | Email: [email protected]

  • 40-year career as an administrator with the New York State Department of Health.
  • Eight (8) years experience in Florida Real Estate as a real estate assistant.
  • Three (3) years experience as a real estate sales professional in Southwest Florida

Angelo Ventresca

Telephone: 239-390-4070 | Email: [email protected]

  • 40-year career as an administrator in the healthcare industry in Upstate New York
  • Three (3) years experience as a real estate sales professional in Southwest Florida