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• Mortgage interest rates are impacted by a variety of factors. The most important ones to watch are the U.S. economy and your own credit history.
• A fixed-rate mortgage is a popular choice for homebuyers, offering borrowers consistent monthly payments over the complete term of the loan.
• Adjustable-rate mortgages (ARMs) often carry lower interest rates, but the rates can change — moving up or down — along with benchmark rates.
• Government-backed FHA, VA, and USDA loans can be a great option, often with the potential for low down payments.
• You can work to elevate your credit score and manage your debt-to-income ratio to be eligible for a better interest rate.
• &nbsYou should also explore assistance programs in Florida, which can help you find routes to more affordable homeownership.p;
Introduction to Mortgage Rates
As a potential homebuyer, you’ll want to have a good understanding of mortgage rates. This information is valuable if you’re looking to purchase in the Jacksonville, Florida area, and the following guide offers you a look at exactly how they work. It will explain how they’re determined, plus give you advice for securing the best possible home loan rate for yourself.
All of this will be especially helpful if you’re buying your first home. Step one in the mortgage journey? You need to understand where the rates you’ll see advertised in Jacksonville originate. Plus, we’ll provide tips to act on and practical guidance to navigate the mortgage landscape with confidence, potentially saving a substantial amount during the life of your loan.
Mortgage interest rates are basically the fees that lenders charge for advancing you the money to buy your home. Lenders’ mortgage rates are determined using a complex combination of factors. You might envision them going into two buckets: the state of the economy and your financial situation.
Where Mortgage Rates Come From
Mortgage interest rates can figure differently for every person, and in every state or city in the U.S. Rates are influenced by the bond market, with the 10-year U.S. Treasury Note being their primary benchmark. An interest rate any homebuyer receives on a home loan is impacted by a number of factors, beginning with their credit score. Keep reading to learn more.
Economic Factors Influencing Mortgage Rates
• The bond market, and the 10-year U.S. Treasury Note in particular, have long been considered primary indicators of the direction mortgage rates are headed. When the note’s rate goes up, mortgage interest rates often head in a similar direction.
• The health of the housing market is also a factor. If the housing market starts cooling down, more homes are likely to be available than there are buyers to purchase them. One result may be that lenders lower rates in order to continue attracting borrowers.
• Inflation and unemployment also play a role in the determination of mortgage rates. When the economy is strong, rates often rise. This reflects the potential for increased borrowing demand and possibly higher costs for lenders providing consumer loans. Lower mortgage rates are likely to come when lenders respond to a recession.
Borrower Factors Influencing Mortgage Rates
• Your credit score is a significant predictor of the rate lenders will offer you. The better the state of your credit and the higher your score, the lower — a.k.a. Better — the mortgage interest rate you’re likely to get.
• The amount of your down payment plays a role as well. Larger down payments tend to result in lower interest rates, since borrowers who have more equity in their newly purchased property are perceived as a lower default risk by lenders.
• Your debt-to-income (DTI) ratio is another important one, as lenders unfailingly look at a borrower’s income in relation to their monthly debts. In general, mortgage lenders like you to have a DTI ratio of 36% or lower, though that’s not necessarily the highest it can be to be granted a mortgage.
See what factors impact your mortgage.
See how different loan amounts, down payments, and other factors impact your home mortgage with our mortgage calculator.
See what factors impact your mortgage.
See how different loan amounts, down payments, and other factors impact your home mortgage with our mortgage calculator.
The type of home mortgage loan you choose and its term will impact your interest rate, too. We’ll get into that in more detail below.
How Interest Rates Affect Home Affordability
Every househunter should know: Mortgage rates have a huge impact on your monthly loan payment, and therefore on how much home you can afford. A $400,000, 30-year loan at a 6.00% interest rate will require a payment of $2,398 per month. But if the rate is 7.00%, your monthly payment jumps to $2,661. Over the 30-year term, that percentage point difference in the interest rate will have you paying almost $100,000 more in interest. That’s a lot.
Take a look at this chart to understand how your interest rate and loan term could impact your monthly payment amount and the total interest you’ll pay on a $300,000 mortgage.
Interest Rate
Loan Term
Monthly Payment
Total Interest
6.00%
30-year
$1,799
$347,515
6.00%
15-year
$2,532
$155,683
7.00%
30-year
$1,996
$418,527
7.00%
15-year
$2,697
$185,367
Mortgage Rate Trends in Jacksonville
Examining historical mortgage rates in Florida and across the country may give you an idea of what the future will hold for Jacksonville’s rates.
Historical U.S. Mortgage Rates
Mortgage rates in the U.S. have been up and down in recent history. They have reached as high as 18.00% and at times plummeted below 3.00%.
The Federal Reserve’s response to economic red flags has been behind some of these shifts. If you can develop an understanding of the most important influences, you’ll be in a position to make informed decisions when you make a home purchase.
Historical Interest Rates in Jacksonville
The table shows how Texas rates have compared to the national average in recent decades. As you’ll see, the state rate, while similar to the national rate, generally remains a bit lower. (The Federal Housing Finance Agency stopped compiling this state-level data after 2018.)
Year
Florida Rate
U.S. Rate
2000
7.96
8.14
2001
7.03
7.03
2002
6.53
6.62
2003
5.78
5.83
2004
5.75
5.95
2005
5.94
6.00
2006
6.70
6.60
2007
6.55
6.44
2008
6.17
6.09
2009
5.11
5.06
2010
4.87
4.84
2011
4.59
4.66
2012
3.67
3.74
2013
3.86
3.92
2014
4.19
4.24
2015
3.96
3.91
2016
3.77
3.72
2017
4.10
4.03
2018
4.62
4.57
Source: Federal House Finance Agency
Types of Mortgages Available in Jacksonville
You have opens when you’re looking for the type of mortgage loan that will best set you up to purchase your home in Jacksonville. Understanding all the choices will help you make informed decisions at every point in the process.
Fixed-Rate Mortgage
A fixed-rate mortgage is the what-you-see-is-what-you-get choice when it comes to home loans. The interest rate it comes with will remain constant over the loan’s entire life. This makes the loan predictable and stable, meaning your monthly payments will stay the same, and your budget should be straightforward to plan. A variety of terms — 10, 15, 20, 30, or even 40 years — are available when you look at a fixed-rate mortgage with most lenders.
Adjustable-Rate Mortgage (ARM)
Adjustable-rate mortgages, often referred to as ARMs, offer lower interest rates compared to fixed-rate loans — at least in the beginning. They tend to be popular among homebuyers who plan to sell their home before the initial fixed-rate period is over. With an ARM, the borrower gets a steady interest rate for the first part of the loan’s term, but as time passes (typically 5 or 7 years), the rate can adjust up or down. It depends on the market; the flexibility works in a borrower’s favor if rates fall, but then again, your payment amount may go up if rates rise.
FHA Loan
This type of loan is offered by the Federal Housing Administration (FHA). It exists to allow a broader audience the advantages of homeownership. Qualify for an FHA loan and you’ll have more flexible eligibility criteria than you might with other loan types — like possible approval with a minimum 580 credit score, and a low down payment option. These loans may be particularly appealing if you qualify as a first-time homebuyer in Jacksonville.
VA Loan
The Veterans Affairs (VA) administration designs loans for homebuyers who have served our country, and they are a great opportunity for eligible active-duty military personnel, veterans, reservists, National Guard members, and surviving spouses. One VA loan benefit is that it doesn’t require a down payment. These loans are an option for you even if you don’t have a lot of savings. VA loans offer competitive rates, and are meant to keep the cost of your mortgage down.
Jumbo Loan
In Jacksonville and many other U.S. cities, the 2025 conventional mortgage loan limit for a single-family home purchase is $806,500. If you have your eye on a property at a price that is higher than this figure, you’ll need a jumbo loan to finance it. They can come with slightly higher interest rates than other loans, and stricter requirements to qualify, but they can help you secure the funds to purchase the home you really want.
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:
Should You Wait for Interest Rates to Drop?
Whether you qualify as a first-time homebuyer in Jacksonville or not, you may be wondering if you should wait for mortgage rates in Florida to drop. Forecasters are predicting a fairly steady path for rates in Florida through 2025 and 2026. What plan is best for you? Most likely you should start by carefully considering your financial readiness. Assess your savings and your credit score, along with market conditions. You can then decide if you want to buy now.
One thing potential homebuyers should know: If interest rates drop after you’ve purchased a home, you haven’t made a mistake. You can pursue a mortgage refinance to help you take advantage of the lower rates.
How Do Jacksonville’s Costs Stack Up?
Jacksonville’s cost of living is pretty affordable compared to other Florida cities. The cost of living is 8% lower than the state average, and 7% lower than the national average. But overall, it is expensive to live in Florida compared to other states. The median monthly mortgage payment in Florida is $2,275.
The chart below shows you how Jacksonville compares to other Florida cities on an index where 100 equals the average cost of living in the U.S.
City
Cost of Living
Cape Coral-Fort Myers
104.9
Daytona Beach
99.1
Fort Lauderdale
121.8
Jacksonville
92.9
Miami-Miami Beach
120.8
Orlando
96.4
Sarasota
104.5
Tallahassee
93.0
Tampa
97.6
How to Get Your Best Possible Rate in Jacksonville
To secure the best rate possible in Jacksonville, make an effort to increase your credit score while reducing your debt-to-income (DTI) ratio. Conventional loans are a common choice and typically require a credit score of 620 or higher, but in 2024 the average credit score of approved applicants was 758, according to Experian®, one company that tracks consumer credit scores.
• Improve your credit score by making timely payments and paying down your credit cards — don’t carry balances.
• Lower your DTI ratio by paying off debts.
• A higher down payment on a home is a good idea if you can do it. That chunk of cash will likely help you get a lower interest rate.
• Lenders look for a steady source of income by checking up on your employment history. They want to make sure you’ve got the cashflow to make your monthly payment.
• You may want to gather your information and go through the mortgage preapproval process, which will give you a reliable idea of what you can afford.
• Check out government-backed loan programs, which tend to have lower interest rates than conventional mortgage loans.
A mortgage calculator is a helpful and easy-to-use tool. It will help you understand the impact of different interest rates on a loan in Jacksonville. It will also tell you how the rate you negotiate will affect monthly payments over your loan’s run. These calculators take the loan amount you request, the term length, and the interest rate, and provide a clear and accurate financial picture that can help you make smart decisions.
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.
How to Evaluate Loan Offers in Jacksonville
Grabbing a competitive mortgage rate is a smart move that can save you a substantial amount of money over the lifetime of your loan. It’s not only the interest rate that matters, though. You’ll also need to factor in fees, closing costs, and discount points. Found a loan offer that feels right? You’re ready to make a bid when you find a home you love.
Jacksonville Mortgage Resources
Florida is home to a lot of resources and programs offering assistance to homebuyers. If you are buying your first home or are worried about your financial scenario, you may find the support you need to buy a starter home in Jacksonville at a great mortgage interest rate.
You might even be considered a first-time buyer if you’ve owned a primary residence before — as long as it hasn’t been in the last three years — or qualify for a down payment assistance programs. The Florida Housing Finance Corporation offers the Florida First initiative, with 30-year fixed-rate FHA, VA, and USDA loans. And the Florida Assist Second Mortgage can provide up to $10,000 for your down payment and closing costs.
If you buy a home in Jacksonville, you can expect to pay between 2% and 5% of your loan amount in closing costs. For a $292,392 home — the average value for homes in Florida in early 2025 — that is between $5,800 and $14,700.
The amount you will pay will likely depend on a range of factors, from the home’s price to its location in the city. Closing costs in Jacksonville may include credit report fees, appraisal fees, loan origination fees, title insurance premiums, and property taxes. Understanding the costs and shopping for the best possible mortgage rates will result in you saving money when you purchase your home. You may find help with your closing costs, too, through local or state programs in Florida.
When you’re figuring out your budget for closing expenses, you may also consider reserving funds for mortgage points. (A mortgage point generally costs 1% of the mortgage amount, and each point lowers your mortgage interest rate by 0.25%.)
The Takeaway
The mortgage landscape in Jacksonville offers options if you’re looking to be a homebuyer. Staying up to date about current mortgage rates and exploring local and state assistance programs are important steps for prospective buyers, whether you’re a first time buyer or an experienced homeowner. Be sure to take advantage of all available resources — it will make the whole process easier and more affordable.
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.
Is it the right time to buy a home in Jacksonville?
Your decision on whether to buy a house in Jacksonville should depend significantly on your personal financial situation and conditions in the market. If you’re prepared moneywise to purchase property and you are able to secure a competitive interest rate, it can indicate that it’s a good time to buy. It’s important, however, to carefully consider your long-term financial goals and the economic climate overall before you make a decision about.
Will Jacksonville home prices go down?
The Jacksonville housing market is influenced by a wide variety of factors, including the state of the economy, locally and nationally. Supply and demand are also key in the home market. It’s hard to predict the exact direction home prices will go, especially when market volatility is increasing. A real estate agent with local knowledge can help you identify the most important points and figures to consider.
How do you lock in a mortgage rate?
Shop around. Compare offers from multiple mortgage lenders to zero in on the most attractive rates. Once you select a lender, ask how you can lock in your rate: A rate lock will most likely last 30 to 60 days. These freezes are free sometimes, but often carry a cost that can be between 0.25% and 0.50% of the loan amount.
How do mortgage interest rates work?
Mortgage interest rates are usually advertised as a percentage. They tell you, very basically, your cost to borrow the money to purchase a house. Rates are affected by economic conditions and your personal financial history. Fixed-rate mortgages carry stable rates, while adjustable-rate mortgages have fluctuating ones. It’s helpful for homebuyers to understand the basics, since even small rate changes can cost or save you thousands of dollars over a 30-year loan term.
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*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.
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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.
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.
