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When you’re considering purchasing a home in the Sunshine State, understanding your potential mortgage payments is a big first step. A Florida mortgage calculator can provide clarity on what your monthly expenses might look like and assist you in making informed decisions about your down payment, loan term, and more. This article will guide you through using a Florida mortgage calculator and help you get the most out of this tool.
Key Points
• Using a mortgage calculator involves inputting purchase price, down payment, interest rate, and loan term.
• Typing in the home’s Florida property tax rate will also impact the monthly payment amount.
• A loan term might be 10 to 30 years and will help govern overall costs.
• First-time homebuyer programs can help new buyers afford a down payment or closing costs.
• Using a mortgage calculator can help you determine what home price, down payment, and interest rate you can afford.
Florida Mortgage Calculator
Calculator Definitions
• Home price: The home price is the purchase price you have agreed to with the home seller. It may differ from the listing price and your first offer.
• Down payment: The down payment is the amount the homebuyer pays upfront, often expressed as a percentage of the total purchase price. Most buyers put down between 3% and 20%. A down payment calculator can show you what percentage of the home price your chosen payment is.
• Loan term: The loan term represents the length of time a borrower has to repay the mortgage. Terms come in lengths of either 10 to 30 years. A shorter term means paying less interest over the life of the loan. A 30-year term offers lower monthly payments.
• Interest rate: The interest rate is the cost of borrowing money, expressed as a percentage of the loan amount. Interest rates vary based on borrower qualifications, market trends, and type of mortgage loan.
• Annual property tax: Property tax typically expressed as a percentage of the property’s assessed value. In Florida, the average effective property tax rate is 0.82%. For your specific number, search the city, county name, or ZIP code and “effective property tax rate.”
• Monthly payment: The monthly payment includes the principal loan amount and the interest accrued, as well as the property tax. Additional costs, such as private mortgage insurance (PMI), homeowners insurance, and homeowners association (HOA) fees, are sometimes included in a mortgage payment.
• Total interest paid: The total interest paid is the amount of interest you will pay over the entire life of the loan. A mortgage calculator can help you explore different scenarios to minimize this cost.
• Total loan cost: The total loan cost includes both the principal loan amount and the accumulated interest. Factors such as loan term, interest rate, and down payment size influence this cost.
How to Use the Florida Mortgage Calculator
Step 1: Enter Your Home Price
Type in the agreed-upon purchase price of the property.
Step 2: Select a Down Payment Amount
Choose the down payment you plan to pay upfront. You can type in the dollar amount or use a percentage.
Step 3: Choose a Loan Term
Select the time you’ll need to repay the home loan. Common terms are 15 or 30 years.
Step 4: Enter an Interest Rate
Input your desired interest rate to the second or third decimal point. This affects your monthly payment and total loan cost.
Step 5: Add Your Property Tax
Enter the percentage representing the rate of the property’s annual property taxes. Florida’s average effective property tax rate is 0.82%.
Benefits of Using a Mortgage Payment Calculator
A mortgage calculator helps you estimate how much house you can afford and provides a clear picture of what your monthly costs would be. It estimates these payments based on loan amount, interest rate, and term, and factors in the property taxes you’ll pay as well. A Florida mortgage calculator is particularly helpful if you’re buying your first home, as it allows you to play with different scenarios (raising and lowering the down payment amount, for example) to find your sweet spot. Using a mortgage calculator allows you to consider multiple scenarios and avoid surprises.
If you’re considering a home loan guaranteed by the Federal Housing Administration (FHA), try using an FHA mortgage calculator, which factors in both the loan’s upfront and ongoing mortgage insurance premiums.
A VA mortgage calculator will be useful if you’re looking at a loan backed by the U.S. Department of Veterans Affairs.
In Florida, the median home sale price is around $400,000. Lenders advise a mortgage payment of no more than 28% of gross monthly income. To afford a $400,000 home with a 20% down payment ($80,000), a 7.00%, 30-year mortgage requires about $95,000 in annual income, before taxes. Your monthly payment would be $2,139, excluding homeowners insurance or HOA fees.
This assumes that you don’t have any other significant debts — if you do, then you might need more earnings. A home affordability calculator can also help you estimate what you can afford relative to your income, simplifying Florida home-buying decisions.
Another way to get a clear picture of what your budget can bear is to go through the mortgage preapproval process with a lender. You’ll provide some detailed financial information, they’ll check your credit score and assess your stats and if you qualify, you’ll be preapproved for a loan amount.
Current mortgage rates by state.
Compare current home interest rates by state and find a mortgage rate that suits your financial goals.
Select a state to view current rates:
Components of a Mortgage Payment
The main components of a mortgage payment are the principal and the interest accrued on the loan. This Florida home mortgage loan calculator also factors in property tax, which is often included in a monthly mortgage payment. (It’s the lender’s way of making sure your home stays insured.) Your monthly payment could also include private mortgage insurance (PMI, paid if the homebuyer’s down payment is less than 20% of the purchase price) or homeowners association (HOA) fees, depending on the specific type of mortgage loan.
Cost of Living in Florida
Florida’s cost of living affects what you can afford when you’re shopping for a home. Higher cost of living areas typically have higher average home prices and above-average costs for utilities, home maintenance, transportation, and other necessities. Florida is somewhat expensive compared to the rest of the country, with a state average composite cost of living of 102%. Some coastal areas, such as Palm Beach and Miami, may require a jumbo loan.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
Tips on Reducing Your Mortgage Payment
Wherever you decide to put down roots in Florida, you may find that you get settled and wonder if there’s a way to reduce your monthly mortgage payment. You have a few options:
• Reach out to your lender to make sure that your PMI is dropped once you reach 20% equity in your home.
• Consider a mortgage recast: Make a lump-sum payment toward your loan principal and ask your lender to redo the math on future payments.
• Undertake a mortgage refinance if interest rates are lower now than they were when you purchased your home. Compare all-in costs of refinancing, as there will be closing costs as well.
• Appeal property taxes if you think yours are too high. Take care here, as sometimes asking for a property tax evaluation can result in higher taxes. If you have made major home improvements, for example, this might not be a good idea.
• Ask your lender to modify your loan if you are facing hardship.
• Extend your loan term (note that this will increase your total interest paid).
• Shop for cheaper homeowners insurance. You might adjust your deductible, bundle your home and auto policies, or request a discount for improving your home security.
Florida First-Time Homebuyer Assistance Programs
If you’re buying your first home, there could be financial help available. (To qualify as a first-time homebuyer, you must not have owned a primary residence within the past three years.) The Florida Housing Finance Corporation offers down payment assistance programs, closing cost assistance, and low-interest rate mortgage loans to low-to-moderate-income homebuyers, making homeownership more accessible.
A Florida mortgage calculator is a valuable tool, especially if you are seeking to estimate your monthly mortgage payments and understand the total cost of homeownership. It helps you assess affordability based on your down payment amount, interest rate, loan term, and even includes property taxes. By using a mortgage calculator, you can make well-informed decisions and find a home and loan that fits within your budget.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
How does my credit score affect my mortgage loan interest rate?
Your credit score significantly impacts your mortgage interest rate. Higher scores mean lower rates, while lower scores can lead to higher rates. Improving your score can secure a better rate and save you thousands in interest over a loan’s duration.
How much should I put down on a mortgage?
The down payment amount depends on your financial situation and the type of loan. A larger down payment can reduce monthly payments and total interest paid, and help avoid private mortgage insurance (PMI), which is paid when the down payment is below 20%. A smaller down payment preserves cash for other financial goals. Particularly if this is your first home purchase, it may be tough to come up with a large down payment, especially given the market’s high home prices.
How can I get a lower mortgage interest rate?
Improve your credit score, shop around for lenders, and increase your down payment. These actions can lead to a more affordable mortgage and long-term savings.
Can I afford a $300K house on a $70K salary?
It would be tough to afford a $300,000 property on earnings of $70,000 unless you can make a significant down payment or have another source of income or savings besides your salary. One general rule is that your house price should not exceed three times your salary. So a home priced around $210,000 would be a better bet.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
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