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• Orlando homebuyers should review their credit score before shopping for a mortgage.
• Making a larger down payment can help to lower the rate a lender offers.
• Compare costs associated with fixed-rate and adjustable-rate mortgages.
• Utilizing a mortgage payment calculator can help homebuyers estimate costs.
• Government programs can help make ownership possible for first-time homebuyers.
Introduction to Mortgage Rates
Mortgage rates in Orlando, Florida, are influenced by a variety of economic indicators in conjunction with personal financial factors that are specific to each borrower. This guide explains in greater detail how these elements affect mortgage rates in Florida and provides advice on how to secure the best rate possible when you are applying for a home loan. Understanding these dynamics is important because it can help you make more informed decisions during the home-buying process and potentially save a significant amount of money over the life of your mortgage rates.
First-time homebuyer programs usually consider anyone who hasn’t owned a home in the previous three years to be a “first-timer.” If you think you might qualify as a first-time homebuyer, you could enjoy special benefits such as lower down payment minimums, grants, and closing cost assistance.
Where Mortgage Rates Come From
In Florida, mortgage rates are heavily influenced by the bond market, especially the 10-year U.S. Treasury Note. When the yield on the T note moves up, rates on home loans generally do, too. The housing market and the rate of inflation also have a big impact on the direction of rates. A good economy and a low unemployment rate tend to push rates up, while a struggling economy and high unemployment rate tend to bring rates down. By keeping an eye on these key economic indicators, you can get a better sense of when to lock in a good rate.
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.
How Interest Rates Affect Home Affordability
Particularly if you are buying your dirst home, it can sometimes seem as if all the talk is about mortgage rates. But a fraction of a percentage point can have a genuine impact on your monthly budget and your long-term financial health.
The median sale price of a home in Orlando tops $400,000, according to Redfin, so it’s not unusual for a buyer to borrow more than $300,000. The chart below shows how the interest rate and loan term on a $300,000 mortgage can affect both your monthly payments and the total amount of interest you pay over the life of the loan. Once you realize that switching from 6.00% to 7.00% can cost you roughly $70,000 over a 30-year loan term, keeping an eye on those percentage points begins to look pretty smart, indeed.
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
Orlando, Florida Mortgage Rate Trends
Historical U.S. Mortgage Rates
When you’re in the market for a mortgage in Orlando, it helps to have perspective on the history of mortgage rates in the area. While it’s true that average mortgage rates have risen since hitting a historic low in 2021, they are still well below the high points of previous decades.
To get some perspective on what “high” and “low” rates have looked like over the last half-century, consider the graph below. The chart shows how Florida’s average rate has compared to the national average in recent decades. (The Federal Housing Finance Agency stopped compiling this data after 2018.) Rates have experienced significant fluctuations over the past two decades. From a high of 7.96% in 2000, rates steadily declined to 5.78% by 2003. While rates have risen in recent years, they remain below historic highs.
Year
Orlando 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 Orlando
In Orlando, borrowers have different types of mortgage loans to consider when purchasing a home. Carefully consider each of these options to find the best fit for your financial situation and homeownership goals.
Fixed-Rate Mortgage
A fixed-rate mortgage in Orlando is a popular choice for many homebuyers because the interest rate is set for the life of the loan. With a fixed-rate mortgage, your monthly payment will remain the same for the entire term of your loan, whether it’s 10, 15, 20, 30, or 40 years. This predictability can make it easier to budget for your mortgage from month to month. And a fixed-rate mortgage can also protect you against the possibility of rising interest rates in the future, which is especially important if you plan to stay in your home for a long time.
Adjustable-Rate Mortgage (ARM)
Adjustable-rate mortgages (ARMs) start off with a lower rate than fixed-rate loans, which is great if you’re planning to sell before the fixed period ends. Here’s how they work: You’ll get a fixed rate for a set period of 5, 7, or 10 years, and after that, the rate will periodically adjust based on the market. In a declining interest rate environment, you could benefit, but if rates go up, it could be risky. ARMs are attractive to many borrowers because the introductory rate is often lower than that for a fixed-rate loan. ARMs can offer initial savings, but it’s essential to weigh the long-term possibility that interest rates will rise.
FHA Loan
With the Federal Housing Administration standing behind them, FHA loans are often more attainable than conventional loans. If you’ve got a credit score of 580 or above, you could be looking at a down payment as low as 3.5%. And even those with lower credit scores may be able to borrow with a larger down payment of 10%. FHA loans offer competitive rates and lower upfront costs than other loan types, but keep in mind that a mandatory mortgage insurance premium will be required as part of the deal.
VA Loan
VA loans are a fantastic opportunity for those who have served our country. This loan is available to eligible active-duty military personnel, veterans, reservists, National Guard members, and surviving spouses. One of the main benefits of a VA loan is that they don’t require a down payment. This is a great option for those who may not have a large amount of money saved up. VA loans also offer competitive rates, which can help keep the cost of your mortgage down.
Jumbo Loan
In Florida, with the exception of Monroe County (home of Key West), a conventional mortgage loan is capped at $806,500 for a single-family home (Monroe’s cap is $967,150). If you’re eyeing a property that’s well beyond this price point, a jumbo loan is what you need. While jumbo loans might come with slightly higher interest rates and more stringent qualification requirements, they’re the key to unlocking the door to your dream home.
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?
If you’re in the market for a home in Orlando, you might be wondering whether it’s worth waiting for mortgage rates to fall. The latest economic forecasts suggest that rates are likely to hold steady in the near term. The average rate for a 30-year fixed mortgage is expected to end 2025 at 6.30%, and the outlook for 2026 doesn’t call for much change. The good news is that homeowners can always do a mortgage refinance if rates do move lower, giving them some flexibility in managing their home loans.
The overall cost of living in Orlando has an impact on home prices and how you fit mortgage payments into your larger budget. As you can see below, Orlando is less expensive than the U.S. as a whole, and also a less expensive place to live than other Florida cities such as Fort Lauderdale and Miami.
Here’s how Orlando stacks up against some of its fellow Florida cities on an index where 100 is 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-Dade County
120.8
Orlando
96.4
Tallahassee
93.0
Tampa
97.6
Vero Beach-Indian River
98.4
How to Get Your Best Possible Rate in Orlando
To get the best mortgage rates in Orlando, Florida, consider this your to-do list:
• Safeguard your credit score by paying down your credit card balances and making your payments on time.
• Lower your DTI ratio by chipping away at your debts.
• Make a higher down payment to the extent possible.
• Consider going through the mortgage preapproval process. Doing so will give you a better idea of what you can afford.
Another thing to put on your list? Exploring government-backed loans and Florida programs for first-time homebuyers or those with limited resources. We’ll discuss that in more detail below.
Helpful Tools & Calculators
A mortgage payment calculator can be a very helpful tool, allowing you to estimate your potential monthly payments and the overall costs associated with different mortgage rates in Orlando. It’s just one of our favorite homebuyer calculators.
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 Orlando
As we’ve seen, a competitive mortgage rate can make a world of difference, saving you substantial money in the long run. When comparing loan offers, pay close attention to the annual percentage rate (APR). This is different from the interest rate because it encompasses fees and closing costs in addition to interest charges. Once you’ve found an offer that speaks to you, consider locking in your rate for up to 90 days, especially if you suspect rates may rise. This way, you can secure a favorable deal and protect your budget. After all, every penny saved is a penny earned.
Orlando Mortgage Resources
Florida offers several programs to support those who are first-time buyers or who have limited financial means. These can include down payment assistance programs and closing cost help, which can significantly reduce the financial burden of buying a home. Florida Housing offers 30-year fixed-rate first mortgage loans to first time homebuyers through participating lenders. Eligible borrowers may also participate in one of Florida Housing’s second mortgage programs to assist with down payment and closing costs. A minimum credit score of 640 is one of the program requirements.
By taking the time to explore Florida programs for first-time homebuyers, you can make more strategic and financially sound decisions. As noted above, many first-time homebuyer programs consider anyone eligible so long as they have not purchased a primary residence in the last three years.
Orlando house-hunters would be wise to set aside 2% to 5% of their home’s purchase price for closing costs. The nitty-gritty of what you’ll pay can be influenced by a variety of factors, from the property’s value to its location. Costs typically include the following:
• Abstract and recording fees: These are related to the title search.
• Application fee: Your lender’s charge to process a loan application.
• Appraisal and survey fees: This is usually in the $300 to $600 range and is sometimes paid before the closing.
• Credit reporting, underwriting, and origination fees: The lender may charge anywhere from $10 to $100 per applicant to check their credit score; underwriting fees (often in the $300 to $750 range) may also be added. Origination fees can be from 0.5% to 1% of the loan’s value.
• Flood certification fee: If required, the certification will state the flood zone status of the property.
• Title search and title insurance fees: The buyer typically pays for the title search that verifies there are no other claims on the property in question.
The Takeaway
Orlando’s mortgage landscape offers plenty of options for homebuyers, but no matter which loan type you are considering, staying in the know about current mortgage rates is key. By keeping your finger on the pulse of the market and exploring available assistance programs, you can make a smart choice that aligns with your financial goals.
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.
Economists are anticipating that mortgage rates will hover around 6.30% through 2025, with only marginal movement in 2026. But bear in mind that no one can predict the movement of financial markets with certainty.
Will Orlando, Florida home prices ever drop?
Orlando’s median home sale prices have hovered around a 5-year high of $415,000 for the last year. Local market experts see inventory growing, which might exert a downward pressure on prices. Homebuyer budgets could also be helped if mortgage rates in Orlando decrease slightly. But given that home insurance prices have been rising, there doesn’t seem to be much relief in sight for the total cost of homeownership in Orlando.
Is it a good time to buy a house in Orlando, Florida?
Whether it’s the right time to buy a house in Orlando, Florida, is a decision only you can make because it’s based as much on your personal needs as on the larger market conditions. Is your lease on a rental home ending? Is your family growing? Do you have a child entering kindergarten? Are you eager to build equity? Any of these could signal that the time to buy is now.
How do mortgage interest rates function?
Mortgage interest rates, presented as a percentage, reflect the cost of borrowing money to purchase a home. A lender determines how much interest to charge by applying the rate to the loan balance. Fixed-rate mortgages maintain a constant interest rate over the loan term, while adjustable-rate mortgages (ARMs) have rates that change in line with the market. Borrowers who want to know exactly how much of each month’s payment is going toward interest vs. the principal owed can consult the amortization schedule for their loan.
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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.
