Free Dallas, TX Home Mortgage Loan Calculator
Dallas, TX Mortgage Calculator
By SoFi Editors | Updated October 22, 2025
Thinking of buying a home in the Big D? A Dallas, Texas, mortgage calculator can be a valuable tool for estimating your monthly payments and understanding the overall cost of a home loan. It doesn’t matter whether you’re a first-time homebuyer or looking to trade up to a newer or bigger home — this guide can walk you through all the factors that will influence your mortgage so you can find a home that fits within your budget.
Key Points
• The Dallas mortgage calculator will help you estimate your monthly payments and the total costs of taking on a home loan.
• Some key factors that influence your mortgage payment include the home price, your down payment amount, the interest rate, and the loan term.
• The calculator can help Dallas-area buyers determine a home’s affordability and assess the impact of various loan terms and interest rates.
• Many lenders recommend choosing a property at a price that lets you keep mortgage payments under 28% of your gross monthly income.
• Ways to reduce your housing expenses if you already own a home include dropping private mortgage insurance (PMI) once you reach 20% equity in your home, refinancing, or shopping for a lower homeowners insurance rate.
Dallas Mortgage Calculator
Calculator Definitions
Before you start plugging in the numbers, here’s a breakdown of key terms you’ll see in the calculator:
• Home price: This is the purchase price that you and the home seller agree upon mutually. The amount could differ from the real estate listing price or the initial offer you make as a potential buyer.
• Down payment: This is the amount you pay upfront when you buy a home. Down payment amounts are often expressed as a percentage of the home price, typically between 3% and 20%.
• Loan term: The loan term represents the length of time you will have to repay your home loan — usually 15 or 30 years. A shorter term comes with higher monthly payments but saves you money on total interest. In contrast, a longer term offers lower monthly payments but increases the overall amount of interest you’ll pay.
• Interest rate: The interest rate is what you’ll pay to borrow the money to buy your home, expressed as a percentage of the total loan amount. Interest rates vary based on the type of mortgage loan, borrower qualifications, and market trends.
• Annual property tax:The local government levies property taxes on land and buildings within their jurisdictions. This tax is usually expressed as a percentage of the assessed property value, and can be higher in major cities.
• Total monthly payment: This is the amount you must pay on your home loan each month. It will include a portion of the principal loan amount, interest, and likely property tax. Other costs it might include are private mortgage insurance (PMI), homeowners insurance, and homeowners association (HOA) fees.
• Total interest paid: This is the cumulative interest a borrower must pay over a home loan’s duration. It’s a number influenced by both the interest rate and the loan term.
• Total loan cost: This is the cumulative interest a borrower must pay over a home loan’s duration. It’s a number influenced by both the interest rate and the loan term.
How to Use the Dallas Mortgage Calculator
To use the Dallas mortgage calculator, follow these steps:
Step 1: Enter Your Home Price
Type in the agreed-upon purchase price. This figure will assist the calculator in estimating your home loan payment and overall costs.
Step 2: Select a Down Payment Amount
Choose the percentage of the home price you plan to pay upfront. The larger your down payment, the lower your monthly installments and total interest paid will be.
Step 3: Choose a Loan Term
Most borrowers select a 15- or 30-year term. A 30-year term generally lets you make lower monthly payments, while a 15-year term reduces the total interest you’ll pay.
Step 4: Enter an Interest Rate
Type in the interest rate you desire or have been offered to the second or third decimal point. This number will impact your monthly payment and the loan’s total cost.
Step 5: Add Your Property Tax Rate
Fill in the property tax rate as a percentage. The average property tax rate for Dallas is 1.68%. The calculator uses this number to add estimated property taxes to your monthly mortgage payment.
Benefits of Using a Mortgage Payment Calculator
A mortgage calculator can help you estimate your monthly payments for a potential home purchase. It will very quickly give you an idea of what the true cost of homeownership will be. If you’re buying a home for the first time, a mortgage calculator can help you see in a few moments just how much house you may be able to fit into your budget.
Another useful tool is called a home affordability calculator. This widget works a little differently, but it can be a big help if you’re dreaming of buying a home, since it allows you to work backward from your income level to figure out a house price you can afford with certainty.
You can also begin to get a clear view of your purchase budget and figure out what your ideal down payment would be by using a down payment calculator, which lets you explore amounts that might work for you.
One more path to enlightenment is to go through the mortgage preapproval process with a lender. This is a more in-depth process. Doing it will require you to locate and input real data and documents, usually doable on the lender’s website, but you will end up with specifics on what amount of money they would be willing to lend you, and at what interest rate.
Deciding How Much House You Can Afford in Dallas
The median single family home sale price in Dallas in 2025 was $425,000. Lenders advise a mortgage payment that does not exceed 28% of your gross monthly income. Within this parameter, you’d need an annual income of $122,000 to afford a home at this price. This assumes you would put down 20% ($85,000) and obtain a 30-year mortgage at 7.00%. The monthly payment on this loan, including principal, interest, and property taxes, would be $2,857.
When it comes to certain higher-priced properties, some homebuyers may need to seek out a jumbo loan. This sort of home mortgage loan requires a higher minimum down payment.
As a potential buyer, you may find the idea of putting down 20% on a pricier property daunting. In some cases, you might be able to opt for a smaller down payment — but that isn’t necessarily advisable. Keep in mind that doing this will increase your loan size, and in turn your monthly costs. It will also trigger PMI, which will add to your monthly payment. A mortgage calculator will help you run the numbers to make the best decision for your financial situation.
If you are looking at the possibility of a home loan guaranteed by the Federal Housing Administration (FHA), you can use an FHA mortgage calculator, which will factor in both upfront and ongoing mortgage insurance premiums that are specific to this option.
A VA mortgage calculator is another tool that you may find useful — look at this option if you are weighing the benefits of a loan backed by the U.S. Department of Veterans Affairs.
Recommended: Do You Qualify as a First-Time Homebuyer?
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
Your mortgage payment every month will be the sum of a few different amounts, including a portion of the mortgage principal (the amount you’ve borrowed) and interest accrued (the borrowing cost you pay your lender to let you use the money). The Dallas mortgage calculator includes property tax, too, since many lenders want you to take care of your taxes as part of your monthly payment.
Other components of a mortgage payment may include:
• Homeowners insurance: Protection against damage to your home and personal property.
• Private mortgage insurance (PMI): Required if your down payment is less than 20% of the home’s value.
• HOA fees: Monthly or annual fees paid to a homeowners association for maintenance and management of common areas and amenities in a community.
Recommended: Average Monthly Expenses for One Person
Cost of Living in Dallas, TX
The cost of living in Dallas is just above the national average, according to COLI 2024 Annual Average Data, which means you’ll need a reasonable budget both to buy property and to live in this city. On an index where 100 is the U.S. average cost of living, the Big D weighs in at 101.8, making it the priciest of all the larger cities in Texas to live in.
When planning your housing budget, remember to account for additional expenses — utilities, healthcare, and other essentials — which tend to cost more than the national average and are generally higher than in other Texas cities.
Despite its posh reputation, Dallas makes the list of the best affordable places in the U.S. This city of 1.3 million people is a bit pricey for Texas, but relatively affordable when you compare it with other major U.S. cities. Dallas has a lot to offer, too — places to mingle with nature, vibrant nightlife and cultural offerings, major sports teams, and a bustling technology job market. Here’s how living costs in Dallas compare to the national index.
| Dallas Cost-of-Living Stats | |
|---|---|
| Overall Cost of Living | 101.8 |
| Groceries | 98.8 |
| Housing | 95.0 |
| Utilities | 115.9 |
| Transportation | 91.0 |
| Health Care | 104.8 |
| Miscellaneous Goods/Services | 107.5 |
Recommended: The Cost of Living in the U.S.
Run the numbers on your home loan.
-
Mortgage calculator
Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.
-
Down payment calculator
Enter a few details about your home loan and we’ll provide your monthly mortgage payment.
-
Home affordability calculator
Provide us with a few details and see how much you can afford to spend on a home purchase.
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.
Dallas First-Time Homebuyer Assistance Programs
If you have your sights set on buying your first home, there is support for you in Texas. The state has down payment asssitance programs in place that may be able to help you cover the initial costs. You may also qualify as a first-time homebuyer if you’ve not been the owner of a primary residence within the past three years.
Recommended: First-Time Homebuyer Guide
Tips to Reduce Your Mortgage Payment
If you find that the interest rate on your mortgage loan or your monthly payment doesn’t feel workable, there are some strategies you can try to lower it. Here are a few options to consider:
• Keep a watchful eye on your equity as it accrues, and ask your lender to remove PMI charges immediately when you reach 20%.
• Recast your mortgage by paying a lump sum toward the principal, then asking the lender to revise your monthly payment.
• Thinking about pursuing a mortgage refinance if your calculations show that current rates and costs overall could amount to a welcome savings for you.
• Consider an appeal of your property taxes — though only if you feel yours are unnecessarily high. Reassessments can backfire, resulting in your property tax going up instead of down, so exercise caution.
• If you run into financial hardship, ask your lender for a modification of the loan to increase its manageability.
• Look for ways to lower the cost of your homeowners insurance. This may be possible by increasing your deductible or bundling together cheaper policies.
The Takeaway
The Dallas mortgage calculator can be a powerful helper for anyone who is hoping to secure a home loan in this Texas city. The tool will help you estimate your monthly payments and total interest, plus show you the approximate overall cost of your mortgage, taking into account factors like down payment amount and property tax rate. Simply enter in the purchase price of the home, your down payment amount, the interest rate, the loan term, and the property tax rate to view your potential monthly mortgage payment.
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.
FAQ
What is a mortgage payment?
A monthly mortgage payment consists of your home loan’s principal and the interest you are paying on it. If you put down less than 20% of the purchase price, your payment will also include PMI, or private mortgage insurance. Lenders tend to roll property tax and homeowners insurance into the total, as well.
How will my credit score affect my mortgage loan interest rate?
Your credit score plays a large role in determining your mortgage interest rate. A higher score will generally lead to a more favorable rate and terms. You can work on building your score by making sure to pay all of your bills on time, keeping your credit utilization ratio low, and disputing any errors on your credit report.
What are the principal and interest on a mortgage loan?
Principal is the amount you borrow to purchase the home. Interest is what it costs you to borrow that principal, and it’s expressed as a percentage of that amount. Your early mortgage payments will mostly cover interest, but as you keep making your monthly payments, you’ll pay more and more to the principal, and pay it off little by little. You also build greater amounts of equity as you go.
Can I afford a $400K house on a $100K salary?
Whether or not you can afford a $400,000 house on a $100,000 salary depends on your personal financial circumstances. A $400,000 house, assuming a 20% down payment ($80,000), would be $2,129 per month for a 7%, 30-year loan. Lenders advise housing expenses to be no more than 28% of your monthly income. To afford that monthly payment, you’d need to make roughly $91,000 per year.
However, it’s important to also factor in your other debt obligations, which lenders advice be no more than 36% of your income (including your mortgage). If you are currently paying more than $600 per month in other debts, a $400,000 home would be a stretch.
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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Get prequalified in minutes for a SoFi Home Loan.
Free Tucson, AZ Mortgage Loan Calculator
Tucson, AZ Mortgage Calculator
By SoFi Editors | Updated October 13, 2025
Getting a mortgage in Tucson is easier when you’ve done your homework in advance. Put a few basic numbers into this mortgage calculator and you’ll learn the monthly payment amount and total interest cost for your home purchase. You can also use the calculator to try out different scenarios to find the home price, down payment, and interest rate that are best for you.
Key Points
• Using a mortgage calculator involves inputting your estimated purchase price, down payment, interest rate, loan term, and property tax rate.
• A mortgage term is typically 10 to 30 years and helps govern overall costs.
• First-time homebuyer programs can help buyers afford a down payment, closing costs, or both.
• A mortgage calculator can help you determine what home price, down payment, and interest rate you can afford.
• There are ways to lower your monthly mortgage costs even after you make your home purchase.
Tucson Mortgage Calculator
Calculator Definitions
• Home price: The home price is the purchase price that you have agreed upon with the home seller. This is a key figure when it comes to determining your home loan amount.
• Down payment: The down payment is the amount you pay upfront. Buyers typically put down between 3% and 20%. A down payment calculator can show you how much you would need to put down to reach 20%, which would likely eliminate the need to pay for private mortgage insurance (PMI).
• Loan term: The loan term is the length of time you have to repay the loan. Common terms are 15 and 30 years. A shorter term can reduce total interest paid but increases monthly payments. A longer term offers lower monthly payments but results in more interest overall.
• Interest rate: The interest rate is the cost of borrowing money, expressed as a percentage of the total loan amount. Interest rates vary based on factors such as your credit score and the type of mortgage loan you choose.
• Annual property tax: Property tax is often rolled into your monthly housing payment.
• Monthly payment: The monthly payment represents what you would pay toward the loan’s principal and interest each month, plus a sum that goes toward your property tax. This calculator does not include home insurance, private mortgage insurance, or homeowners association (HOA) fees.
• Total interest paid: The total interest paid represents the amount of interest you will pay over the life of your home loan. A larger down payment, lower interest rate, or shorter loan term can reduce this amount.
• Total loan cost: The total loan cost represents the entire amount you will pay for the loan, including both the principal borrowed and the accumulated interest.
How to Use the Tucson Mortgage Calculator
Step 1: Enter Your Home Price
Type the home price, which is the agreed-upon purchase price with the home seller.
Step 2: Select a Down Payment Amount
Choose the percent of the home price you will pay upfront. A larger down payment can reduce monthly payments and total interest paid. Use a down payment calculator to determine the right figure for your budget.
Step 3: Choose a Loan Term
Select the length of time you would like to repay the mortgage, anywhere from 10 to 30 years. A longer term means lower monthly payments but more interest over time.
Step 4: Enter an Interest Rate
Input your estimated interest rate to the second or third decimal point. A lower rate reduces monthly payments and total interest paid.
Step 5: Add Your Annual Property Tax Rate
Enter the home’s property tax rate. The average effective property tax rate in Pima County, where Tucson is located, is 0.84%.
Benefits of Using a Mortgage Payment Calculator
A mortgage calculator helps you estimate how much house you can afford by calculating monthly payments based on loan amount, interest rate, and repayment term. Use this tool to compare costs, like how the interest rate affects your monthly payments. Check out different loan terms to see their impact on expenses and total interest.
A Tucson 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).
Deciding How Much House You Can Afford in Tucson
In Tucson, the median home sale price in late 2025 was $310,000 — much more affordable than the national median of around $443,000, according to Redfin. Lenders recommend that a mortgage payment not exceed 28% of your gross monthly income. You’d need to earn an annual income of about $71,000 if you were looking to afford a $310,000 home with a $1,657 monthly payment. That payment factors in a 20% down payment ($62,000), an interest rate of 7.00% on a 30-year mortgage, and a property tax rate of 0.84%.
Because lenders typically recommend total debt payments stay under 36% of your gross monthly income, your other monthly debts shouldn’t exceed about $473 in this case. If you want to factor in other debts, such as a car loan or student loan, you can use a home affordability calculator.
A more reliable method to help you determine affordability is to go through the mortgage preapproval process with a lender, where you provide detailed financial information. The lender will let you know whether you qualify for a loan and, if so, in what amount and under what terms.
If you need a jumbo loan, you’ll need to put down at least 10%.
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
A mortgage payment mainly covers the principal (borrowed amount) and interest (borrowing cost). But your monthly payment might also include property tax, which is based on your home’s assessed value. If your down payment is less than 20%, you may be required to purchase PMI. Other potential costs that are often rolled into the payment are homeowners association (HOA) fees and homeowners insurance.
Homebuyers who are considering purchasing with the help of a Federal Housing Administration (FHA) loan will have an upfront and ongoing mortgage insurance premium to pay. These loans are still very affordable and are popular with first-time buyers. If you are considering an FHA loan, use an FHA mortgage calculator. Similarly, if you are purchasing with a loan backed by the U.S. Department of Veterans Affairs, you’ll want a VA mortgage calculator.
Recommended: Average Monthly Expenses for One Person
The Cost of Living in Tucson
Tucson has a relatively low cost of living, being 2% less expensive than the national average and 1% less expensive to live in than the average city in Arizona, according to the Economic Research Institute (ERI). The cost of living reflects how far your dollar goes when purchasing a home, buying groceries, paying for utilities, transportation, health care, and other necessities. For instance, your Tucson dollar would go further than it would in Flagstaff.
Arizona’s 2024 cost of living index (COLI) was 110.7, according to the Council for Community and Economic Research, making the state more expensive than New Mexico (93.7) and Utah (102.2), but living in Arizona is still much more affordable than it is in California (142.3) or Massachusetts (141.2), two of the most expensive states in the country.
This chart highlights the cost of living for some of the major cities in Arizona:
| Arizona Cities’ Cost-of-Living Stats | |
|---|---|
| Flagstaff | 121.6 |
| Lake Havasu City | 125.2 |
| Phoenix | 106.3 |
| Prescott Valley | 120.2 |
Source: Council for Community and Economic Research’s Cost of Living Index.
If you were looking to purchase a home in one of the best affordable places in the U.S., you’re in luck because Tucson is considered one of the best affordable places to live in Arizona.
Recommended: The Cost of Living in the U.S.
Run the numbers on your home loan.
-
Mortgage calculator
Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.
-
Down payment calculator
Enter a few details about your home loan and we’ll provide your monthly mortgage payment.
-
Home affordability calculator
Provide us with a few details and see how much you can afford to spend on a home purchase.
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
Once you purchase a home in Tucson, it might still be possible to reduce your mortgage payment. Here are some strategies you can explore after you’re settled in.
• Make additional payments toward the principal to decrease both the term of your loan and the total interest paid over its lifetime.
• Once you’ve built 20% equity in your home, request that your lender cancel PMI payments.
• Review your property taxes regularly. If you think your property taxes are too high, the Pima County Assessor’s Office can inform you about the appeals process.
• See if your insurer offers a discount for bundling policies. Sometimes if you purchase more than one policy with them — both a homeowners and auto policy, for instance — they may offer a discount.
• If mortgage rates have dropped since you made your purchase, consider a mortgage refinance.
Tucson’s First-Time Homebuyer Assistance Programs
If you’re considering buying your first home in Tucson, there are down payment assistance programs available to help you cover the initial costs associated with purchasing property. Anyone who hasn’t owned a primary residence in the past three years is considered a first-time homebuyer.
For example, the Arizona Industrial Development Authority administers the Home+Plus Down Payment Assistance Program, which offers qualifying buyers a 30-year fixed-rate mortgage along with down payment assistance.
Recommended: Do You Qualify as a First-Time Homebuyer?
The Takeaway
Using a Tucson mortgage calculator is a valuable step in the home-buying process. It helps you estimate monthly payments, understand the impact of different down payment amounts, and compare various loan terms and interest rates. This tool can provide a clearer picture of your financial obligations and help you make informed decisions about your home loan. Especially if you are a first-time homebuyer in Tucson, the mortgage calculator can be a practical resource in planning your homeownership journey.
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.
FAQ
How much should I put down on a mortgage?
You should put as much money as you comfortably can toward a down payment on a home, while ensuring that you aren’t pinching your finances to the bone. A first-time homebuyer can sometimes put down as little as 3% toward the purchase price of a home. And repeat buyers may be able to contribute just 5%. If you put down less than 20%, you will likely have to add private mortgage insurance payments to your monthly bill. Look at the entire financial picture to determine if that makes sense for you.
How can I get a lower mortgage interest rate?
For the lowest mortgage interest rate, work to cultivate a strong credit score (aim for 700 or more, which is well over the 620 score you’ll need to qualify for a home loan). Go through the online prequalification process with multiple lenders to see how low a rate you might be able to obtain. A higher down payment may help, too, if you can afford to make one. If you already own a home, you can explore a mortgage refinance and compare the costs of your old loan versus a new one (plus closing costs) at a new, lower rate.
Should I choose a 30-year or 15-year mortgage term?
A 30-year mortgage offers lower monthly payments, but you will pay more interest over time. A 15-year mortgage has higher monthly payments but saves on interest. Consider your financial goals and budget, and choose the shortest term that you feel you can comfortably afford.
How much is the payment on a $300,000, 30-year mortgage?
The cost of a $300,000 mortgage with a 30-year term will depend on your interest rate and a down payment. For instance, at an interest rate of 6.00%, and a down payment of 20% ($60,000), your monthly payment would be $1,439. This estimate includes principal and interest but not property taxes, insurance, or other fees.
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.
SOHL-Q325-142
Get prequalified in minutes for a SoFi Home Loan.
VA Loan Rates in Florida
Florida VA loan RATES TODAY
Current VA loan rates in
Florida.
Viewing your rate won’t affect your score.
Compare VA loan rates in Florida.
Key Points
• VA loan rates are influenced by economic factors such as inflation and bond market dynamics.
• A mere 1% drop in the VA loan rate can translate to hefty savings on interest.
• Opting for a 15-year mortgage could be a smart move, helping you save on interest in the long run, even if the monthly payments are a bit steeper.
• Some borrowers refinance out of or into adjustable-rate mortgages. These typically have lower initial refinance rates and could be a good option for those who plan to move or refinance in the near future.
• Homeowners can request a mortgage recast to lower monthly payments without changing the VA loan rate. The typical cost is $100 to $500.
Introduction to VA loan Rates
A VA loan is the process of replacing your existing home loan with a new one. The terms of the new mortgage can be different, but the most common goal is to secure a lower interest rate and reduced monthly mortgage payments. The type of refinance you choose will determine your interest rate. This guide will help you understand how current mortgage rates are set and how you can get the best available rate. By the end, you’ll have a better understanding of what to expect and how to make an informed decision about refinancing your home.
Where Do Mortgage Rates Come From?
The Federal Reserve, aka the Fed, sets the short-term interest rates that banks use. Although home loan rates aren’t directly tied to Fed rates, they follow the same economic trends. So when the Fed’s interest rate is high, chances are mortgage rates will be too.
Other mortgage rate influencers include the bond market, inflation, and the unemployment rate. We’ll get into those more below.
How Interest Rates Affect Home Affordability
Mortgage rates have a bigger impact on home affordability than you may realize. Consider the national median home price of $412,300 for Q2 2024. With a 30-year fixed mortgage at 3.00%, the monthly payment is approximately $1,390. However, if the interest rate increases to 6.00%, the monthly payment jumps to $1,977. Such an increase — more than 40% — can affect affordability for many buyers.
Should Homebuyers Wait for Interest Rates to Drop?
The burning question, especially if you’re buying your first home, is: Should I jump in now or wait? All else being equal, the answer is probably don’t wait. Although mortgage rates have been higher than they were during the pandemic, they’re actually close to the 50-year average. And when rates do drop, the housing market will be flooded by buyers who have been sitting on the sidelines.
While it’s always tempting to wait for lower rates, your personal circumstances are more important. If you’re ready financially and need a new home, higher interest rates shouldn’t deter you. After all, a mortgage refinance could still lower your rate later.
Understand Trends in Florida Mortgage Interest Rates
Understanding historical mortgage rate trends can provide valuable insights into the future. In Florida, mortgage 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 historical highs. Experts predict that Florida mortgage rates will likely stay above historical lows for the foreseeable future.
Below you’ll find the average annual interest rate for Florida and the United States for 2000 through 2018. (The FHFA stopped reporting the data in 2018.)
Historical U.S. Mortgage Interest Rates
Looking at a much longer span of time, a half-century, can give you perspective on the rates that are now available. As you can see from the graphic below, it’s pretty rare for rates to dip as low as they did in 2020 and 2021. By keeping an eye on these trends, you can make an informed decision about whether to pursue your VA loan, and when.
Historical Interest Rates in Florida
Florida VA loan rates have seen their share of ups and downs, for the most part trailing the national average just slightly. The chart below shows Florida rates from 2000 to 2018, when the Federal Housing Finance Agency stopped tracking state-specific averages.
| Year | Florida Rate | National Rate |
|---|---|---|
| 2000 | 8.03 | 8.14 |
| 2001 | 7.01 | 7.03 |
| 2002 | 6.61 | 6.62 |
| 2003 | 5.81 | 5.83 |
| 2004 | 5.94 | 5.95 |
| 2005 | 5.98 | 6.00 |
| 2006 | 6.71 | 6.60 |
| 2007 | 6.54 | 6.44 |
| 2008 | 6.15 | 6.09 |
| 2009 | 5.04 | 5.06 |
| 2010 | 4.76 | 4.84 |
| 2011 | 4.52 | 4.66 |
| 2012 | 3.59 | 3.74 |
| 2013 | 3.80 | 3.92 |
| 2014 | 4.08 | 4.24 |
| 2015 | 3.79 | 3.91 |
| 2016 | 3.66 | 3.72 |
| 2017 | 3.98 | 4.03 |
| 2018 | 4.57 | 4.57 |
Factors Affecting Mortgage Rates in Florida
As mentioned above, many factors influence mortgage rates in Florida and nationwide. Some of those are economic, but others are entirely within the homebuyer’s control. Here’s how they break down:
Economic Factors
• The Fed: The federal funds rate serves as a benchmark for other interest rates, including mortgage rates.
• Inflation: When inflation rises, the purchasing power of money decreases, making it more expensive for lenders to lend money. As a result, they may increase interest rates to compensate.
• Unemployment rate: Lower unemployment can result in higher mortgage rates. A low unemployment rate indicates a strong economy, which typically leads to increased demand for housing. This increased demand puts upward pressure on home prices and, not surprisingly, mortgage interest rates.
Consumer Factors
• Credit score: A higher credit score generally results in a lower mortgage interest rate. Lenders view borrowers with higher credit scores as less risky, making them more likely to offer favorable rates.
• Down payment: Increasing your down payment may reduce your mortgage rate. A larger down payment lowers the loan-to-value ratio (LTV), the portion of the home’s value financed by the loan. A lower LTV reduces the lender’s risk and may result in a lower interest rate.
• Income and assets: A steady income is important to lenders, who will check your employment history as well as your salary. Assets like investments and emergency savings also reassure lenders that you could still pay your mortgage in the case of a job loss or other financial setback.
• Type of mortgage loan: Certain types of mortgages tend to have lower rates. For instance, adjustable rate mortgages typically offer lower initial rates than fixed-rate mortgages. Some government-backed loans, like VA mortgages, can also have lower rates. And a shorter loan term usually comes with a lower rate than longer terms.
💡 Recommended: What Is the Average Down Payment On a House?
Mortgage Options for First-Time Homebuyers in Florida
An important step in deciding how to refinance your mortgage is selecting the type of loan you will refinance into. These are some of the most common types.
Conventional Refi
A conventional refinance, also known as a rate-and-term refinance, allows you to change your interest rate, loan term, or both. These loans typically offer higher rates than government-backed loans from the FHA or VA, for example. But a conventional refinance could be a good option if you’re looking to lower your interest rate, change your loan term, or both.
15-Year Mortgage Refi
Some people refinance into a loan with a shorter term than their original mortgage. It’s common to go from a 30-year term to a 15-year one. This means higher monthly payments in the short term, but it’s a savvy move that can slash the total interest you pay over the loan’s lifetime. And if you combine a shorter term with a lower interest rate, you might not even feel such a burden from the larger monthly payments. Some people like the fact that shortening the term helps them get rid of mortgage debt before retirement. (Of course other people might refi from a 15-year loan into a 30-year one. Choosing a term is based on your personal financial circumstances.)
Adjustable-Rate Mortgage Refi
Adjustable-rate mortgages (ARMs) offer a low initial interest rate and so might be attractive to some borrowers — especially those who know they plan to sell the home before the rate on their new loan begins to adjust. Some borrowers prefer to adjust out of an ARM and into a fixed-rate loan because they want their monthly payments to be steady and predictable.
Cash-Out Refi
This type of refinance is a powerful financial tool that allows you to leverage your home equity. By refinancing your mortgage for more than you currently owe, you can access a lump sum of cash that can be used for home improvements or debt consolidation, for example. Although a cash-out refinance typically carries a higher VA loan rate than a traditional refinance, it’s one of the more cost-effective ways to borrow a large sum of money.
FHA Refi
FHA loans, backed by the Federal Housing Administration, often offer attractive VA loan rates, making them a popular choice for homeowners. For those with existing FHA loans, the FHA Simple Refinance and FHA Streamline Refinance are designed to simplify the process and potentially reduce your rate. If you don’t have an FHA loan, you may still benefit from an FHA cash-out refinance or FHA 203(k) refinance. The latter is designed for home renovations.
VA Refi
VA loans, guaranteed by the United States Department of Veterans Affairs, are known for offering some of the best VA loan rates. To refinance with a VA interest rate reduction refinance loan (IRRRL), you’ll need to have a VA loan in the first place. There is also a VA cash-out refinance, and anyone who qualifies for a VA loan can use this to take advantage of their home equity in a refinance.
Compare Mortgage Refi Interest Rates
Once you know what type of refinance you’re going to pursue, it’s time to secure a competitive VA loan rate. Here’s what to do:
• Compare rates and fees from multiple lenders.
• Look at the loan’s annual percentage rate (APR), which includes interest and fees. These and other closing costs are part of the total picture of your mortgage refinancing costs.
• Weigh the cost of discount points against long-term savings, and decide whether or not you will purchase points.
A refinance calculator can help you estimate your savings and make an informed decision.
Use an Online Refinance Calculator
Online refinance calculators are a great way to get an estimate of what your new monthly payment may be and to compare different refinance options. You probably used a similar calculator during your home purchase process. Many online refinance calculators will also show you how much you could save by refinancing, which can help you decide if refinancing is the right choice for you.
Run the numbers on your home loan.
-
Mortgage calculator
Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.
-
Down payment calculator
Enter a few details about your home loan and we’ll provide your monthly mortgage payment.
-
Home affordability calculator
Provide us with a few details and see how much you can afford to spend on a home purchase.
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.
The Takeaway
Refinancing your mortgage can be a smart financial move, but it requires some careful consideration and planning. Whether you’re looking to get a lower VA loan rate, tap into your home’s equity, or consolidate debt, it’s important to understand the different types of refinances and the requirements for each. By taking steps to strengthen your credit score and lower your debt-to-income ratio, and by comparing offers from multiple lenders, you can help ensure that you get the best rate and terms for your situation.
SoFi can help you save money when you refinance your mortgage. Plus, we make sure the process is as stress-free and transparent as possible. SoFi offers competitive fixed rates on a traditional mortgage refinance or cash-out refinance.
A mortgage refinance could be a game changer for your finances.
FAQ
How much would a 1% drop in interest rate affect your monthly payment?
You may be surprised at how much a 1% reduction in your VA loan rate can impact your monthly budget. Let’s say you have a $300,000, 30-year mortgage. If you’re currently paying 7.00% interest and can refinance to 6.00%, you could see your monthly payment amount drop by $197. Over time, that seemingly small change can add up to big savings. And of course the larger your loan amount, the larger your savings as well.
Can I lower my interest rate without refinancing?
It might be difficult to lower your mortgage interest rate without refinancing, but you can reduce your monthly payments by undertaking a mortgage recast. A mortgage recast involves making a lump-sum payment toward your principal balance. (Make sure you tell your lender the money is to be credited to the principal you owe.) You can request that your lender then “recast” your monthly payment amount to reflect the reduced principal. Of course, this only works if you have a lump sum on hand. If you’re facing financial hardship, you could also ask your lender about a loan modification. Your lender will have a formal request process for this type of adjustment.
Is there a fee to recast your mortgage?
The fee to recast your mortgage ranges from $150 to $500, which is far less than the cost of a refinance. To determine if recasting your mortgage is worth it, look at how the interest saved over the remaining life of your loan compares to the earnings or savings you might enjoy if you used that lump sum in another way — for example, to pay off some other form of debt, or to make investments.
How many times can you refinance your home loan?
There’s no official rule on how many times you can refinance your home. But, each time you do, there are closing costs to consider and a potential impact on your credit score. Take a step back and weigh the benefits of a lower VA loan rate against these costs and impacts. Before you make a decision, consider the current interest rate climate, your financial situation, and your long-term goals. Refinancing can be a savvy financial move, but it’s important to make sure it’s the right move for you.
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.
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.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
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.
SOHL-Q125-198
More VA loan resources.
-
How to Get Preapproved for a VA Home Mortgage Loan?
-
What is a VA Home Loan and How Does it Work?
-
Pros and Cons of VA Loans
Apply online or call for a complimentary mortgage consultation.
FHA Loan Rates in Florida
Florida FHA loan RATES TODAY
Current FHA loan rates in
Florida.
Viewing your rate won’t affect your score.
Compare FHA loan rates in Florida.
Key Points
• FHA loan rates are influenced by economic factors such as inflation and bond market dynamics.
• A mere 1% drop in the FHA loan rate can translate to hefty savings on interest.
• Opting for a 15-year mortgage could be a smart move, helping you save on interest in the long run, even if the monthly payments are a bit steeper.
• Some borrowers refinance out of or into adjustable-rate mortgages. These typically have lower initial refinance rates and could be a good option for those who plan to move or refinance in the near future.
• Homeowners can request a mortgage recast to lower monthly payments without changing the FHA loan rate. The typical cost is $100 to $500.
Introduction to FHA loan Rates
A FHA loan is the process of replacing your existing home loan with a new one. The terms of the new mortgage can be different, but the most common goal is to secure a lower interest rate and reduced monthly mortgage payments. The type of refinance you choose will determine your interest rate. This guide will help you understand how current mortgage rates are set and how you can get the best available rate. By the end, you’ll have a better understanding of what to expect and how to make an informed decision about refinancing your home.
Where Do Mortgage Rates Come From?
The Federal Reserve, aka the Fed, sets the short-term interest rates that banks use. Although home loan rates aren’t directly tied to Fed rates, they follow the same economic trends. So when the Fed’s interest rate is high, chances are mortgage rates will be too.
Other mortgage rate influencers include the bond market, inflation, and the unemployment rate. We’ll get into those more below.
How Interest Rates Affect Home Affordability
Mortgage rates have a bigger impact on home affordability than you may realize. Consider the national median home price of $412,300 for Q2 2024. With a 30-year fixed mortgage at 3.00%, the monthly payment is approximately $1,390. However, if the interest rate increases to 6.00%, the monthly payment jumps to $1,977. Such an increase — more than 40% — can affect affordability for many buyers.
Should Homebuyers Wait for Interest Rates to Drop?
The burning question, especially if you’re buying your first home, is: Should I jump in now or wait? All else being equal, the answer is probably don’t wait. Although mortgage rates have been higher than they were during the pandemic, they’re actually close to the 50-year average. And when rates do drop, the housing market will be flooded by buyers who have been sitting on the sidelines.
While it’s always tempting to wait for lower rates, your personal circumstances are more important. If you’re ready financially and need a new home, higher interest rates shouldn’t deter you. After all, a mortgage refinance could still lower your rate later.
Understand Trends in Florida Mortgage Interest Rates
Understanding historical mortgage rate trends can provide valuable insights into the future. In Florida, mortgage 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 historical highs. Experts predict that Florida mortgage rates will likely stay above historical lows for the foreseeable future.
Below you’ll find the average annual interest rate for Florida and the United States for 2000 through 2018. (The FHFA stopped reporting the data in 2018.)
Historical U.S. Mortgage Interest Rates
Looking at a much longer span of time, a half-century, can give you perspective on the rates that are now available. As you can see from the graphic below, it’s pretty rare for rates to dip as low as they did in 2020 and 2021. By keeping an eye on these trends, you can make an informed decision about whether to pursue your FHA loan, and when.
Historical Interest Rates in Florida
Florida FHA loan rates have seen their share of ups and downs, for the most part trailing the national average just slightly. The chart below shows Florida rates from 2000 to 2018, when the Federal Housing Finance Agency stopped tracking state-specific averages.
| Year | Florida Rate | National Rate |
|---|---|---|
| 2000 | 8.03 | 8.14 |
| 2001 | 7.01 | 7.03 |
| 2002 | 6.61 | 6.62 |
| 2003 | 5.81 | 5.83 |
| 2004 | 5.94 | 5.95 |
| 2005 | 5.98 | 6.00 |
| 2006 | 6.71 | 6.60 |
| 2007 | 6.54 | 6.44 |
| 2008 | 6.15 | 6.09 |
| 2009 | 5.04 | 5.06 |
| 2010 | 4.76 | 4.84 |
| 2011 | 4.52 | 4.66 |
| 2012 | 3.59 | 3.74 |
| 2013 | 3.80 | 3.92 |
| 2014 | 4.08 | 4.24 |
| 2015 | 3.79 | 3.91 |
| 2016 | 3.66 | 3.72 |
| 2017 | 3.98 | 4.03 |
| 2018 | 4.57 | 4.57 |
Factors Affecting Mortgage Rates in Florida
As mentioned above, many factors influence mortgage rates in Florida and nationwide. Some of those are economic, but others are entirely within the homebuyer’s control. Here’s how they break down:
Economic Factors
• The Fed: The federal funds rate serves as a benchmark for other interest rates, including mortgage rates.
• Inflation: When inflation rises, the purchasing power of money decreases, making it more expensive for lenders to lend money. As a result, they may increase interest rates to compensate.
• Unemployment rate: Lower unemployment can result in higher mortgage rates. A low unemployment rate indicates a strong economy, which typically leads to increased demand for housing. This increased demand puts upward pressure on home prices and, not surprisingly, mortgage interest rates.
Consumer Factors
• Credit score: A higher credit score generally results in a lower mortgage interest rate. Lenders view borrowers with higher credit scores as less risky, making them more likely to offer favorable rates.
• Down payment: Increasing your down payment may reduce your mortgage rate. A larger down payment lowers the loan-to-value ratio (LTV), the portion of the home’s value financed by the loan. A lower LTV reduces the lender’s risk and may result in a lower interest rate.
• Income and assets: A steady income is important to lenders, who will check your employment history as well as your salary. Assets like investments and emergency savings also reassure lenders that you could still pay your mortgage in the case of a job loss or other financial setback.
• Type of mortgage loan: Certain types of mortgages tend to have lower rates. For instance, adjustable rate mortgages typically offer lower initial rates than fixed-rate mortgages. Some government-backed loans, like FHA mortgages, can also have lower rates. And a shorter loan term usually comes with a lower rate than longer terms.
💡 Recommended: What Is the Average Down Payment On a House?
Mortgage Options for First-Time Homebuyers in Florida
An important step in deciding how to refinance your mortgage is selecting the type of loan you will refinance into. These are some of the most common types.
Conventional Refi
A conventional refinance, also known as a rate-and-term refinance, allows you to change your interest rate, loan term, or both. These loans typically offer higher rates than government-backed loans from the FHA or FHA, for example. But a conventional refinance could be a good option if you’re looking to lower your interest rate, change your loan term, or both.
15-Year Mortgage Refi
Some people refinance into a loan with a shorter term than their original mortgage. It’s common to go from a 30-year term to a 15-year one. This means higher monthly payments in the short term, but it’s a savvy move that can slash the total interest you pay over the loan’s lifetime. And if you combine a shorter term with a lower interest rate, you might not even feel such a burden from the larger monthly payments. Some people like the fact that shortening the term helps them get rid of mortgage debt before retirement. (Of course other people might refi from a 15-year loan into a 30-year one. Choosing a term is based on your personal financial circumstances.)
Adjustable-Rate Mortgage Refi
Adjustable-rate mortgages (ARMs) offer a low initial interest rate and so might be attractive to some borrowers — especially those who know they plan to sell the home before the rate on their new loan begins to adjust. Some borrowers prefer to adjust out of an ARM and into a fixed-rate loan because they want their monthly payments to be steady and predictable.
Cash-Out Refi
This type of refinance is a powerful financial tool that allows you to leverage your home equity. By refinancing your mortgage for more than you currently owe, you can access a lump sum of cash that can be used for home improvements or debt consolidation, for example. Although a cash-out refinance typically carries a higher FHA loan rate than a traditional refinance, it’s one of the more cost-effective ways to borrow a large sum of money.
FHA Refi
FHA loans, backed by the Federal Housing Administration, often offer attractive FHA loan rates, making them a popular choice for homeowners. For those with existing FHA loans, the FHA Simple Refinance and FHA Streamline Refinance are designed to simplify the process and potentially reduce your rate. If you don’t have an FHA loan, you may still benefit from an FHA cash-out refinance or FHA 203(k) refinance. The latter is designed for home renovations.
VA Refi
FHA loans, guaranteed by the United States Department of Veterans Affairs, are known for offering some of the best FHA loan rates. To refinance with a FHA interest rate reduction refinance loan (IRRRL), you’ll need to have a FHA loan in the first place. There is also a FHA cash-out refinance, and anyone who qualifies for a FHA loan can use this to take advantage of their home equity in a refinance.
Compare Mortgage Refi Interest Rates
Once you know what type of refinance you’re going to pursue, it’s time to secure a competitive FHA loan rate. Here’s what to do:
• Compare rates and fees from multiple lenders.
• Look at the loan’s annual percentage rate (APR), which includes interest and fees. These and other closing costs are part of the total picture of your mortgage refinancing costs.
• Weigh the cost of discount points against long-term savings, and decide whether or not you will purchase points.
A refinance calculator can help you estimate your savings and make an informed decision.
Use an Online Refinance Calculator
Online refinance calculators are a great way to get an estimate of what your new monthly payment may be and to compare different refinance options. You probably used a similar calculator during your home purchase process. Many online refinance calculators will also show you how much you could save by refinancing, which can help you decide if refinancing is the right choice for you.
Run the numbers on your home loan.
-
Mortgage calculator
Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.
-
Down payment calculator
Enter a few details about your home loan and we’ll provide your monthly mortgage payment.
-
Home affordability calculator
Provide us with a few details and see how much you can afford to spend on a home purchase.
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.
The Takeaway
Refinancing your mortgage can be a smart financial move, but it requires some careful consideration and planning. Whether you’re looking to get a lower FHA loan rate, tap into your home’s equity, or consolidate debt, it’s important to understand the different types of refinances and the requirements for each. By taking steps to strengthen your credit score and lower your debt-to-income ratio, and by comparing offers from multiple lenders, you can help ensure that you get the best rate and terms for your situation.
SoFi can help you save money when you refinance your mortgage. Plus, we make sure the process is as stress-free and transparent as possible. SoFi offers competitive fixed rates on a traditional mortgage refinance or cash-out refinance.
A mortgage refinance could be a game changer for your finances.
FAQ
How much would a 1% drop in interest rate affect your monthly payment?
You may be surprised at how much a 1% reduction in your FHA loan rate can impact your monthly budget. Let’s say you have a $300,000, 30-year mortgage. If you’re currently paying 7.00% interest and can refinance to 6.00%, you could see your monthly payment amount drop by $197. Over time, that seemingly small change can add up to big savings. And of course the larger your loan amount, the larger your savings as well.
Can I lower my interest rate without refinancing?
It might be difficult to lower your mortgage interest rate without refinancing, but you can reduce your monthly payments by undertaking a mortgage recast. A mortgage recast involves making a lump-sum payment toward your principal balance. (Make sure you tell your lender the money is to be credited to the principal you owe.) You can request that your lender then “recast” your monthly payment amount to reflect the reduced principal. Of course, this only works if you have a lump sum on hand. If you’re facing financial hardship, you could also ask your lender about a loan modification. Your lender will have a formal request process for this type of adjustment.
Is there a fee to recast your mortgage?
The fee to recast your mortgage ranges from $150 to $500, which is far less than the cost of a refinance. To determine if recasting your mortgage is worth it, look at how the interest saved over the remaining life of your loan compares to the earnings or savings you might enjoy if you used that lump sum in another way — for example, to pay off some other form of debt, or to make investments.
How many times can you refinance your home loan?
There’s no official rule on how many times you can refinance your home. But, each time you do, there are closing costs to consider and a potential impact on your credit score. Take a step back and weigh the benefits of a lower FHA loan rate against these costs and impacts. Before you make a decision, consider the current interest rate climate, your financial situation, and your long-term goals. Refinancing can be a savvy financial move, but it’s important to make sure it’s the right move for you.
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.
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.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
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.
SOHL-Q125-198
More FHA loan resources.
-
What Is the Minimum Down Payment for a FHA Loan?
-
Can I Get an FHA Loan if I Already Own a Home?
-
FHA Loan vs. Conventional Mortgage: What’s the Difference?
Apply online or call for a complimentary mortgage consultation.
Cost of Living in Alabama
Cost of Living in Alabama
(Last Updated – 03/2025)
Whether Tiger or Crimson Tide, there’s no doubt that Alabamans are intensely proud of their state. With some of the best college football legacies in the nation, its delicious southern cuisines, or the fact that Mobile, Alabama was actually the site of the first celebration of Mardi Gras, it’s not surprising why Alabamans are so proud to hail from the Heart of Dixie.
Alabama’s ranks continue to grow, as its population has risen each year since 2010 and now numbers over 5,157,000 residents. One of the things that continues to draw in new residents is no doubt Alabama’s affordable cost of living.
We take an up-close look at some of the key costs of living that make up the budgets of everyday Alabamans.
What’s the Average Cost of Living in Alabama?
Average Cost of Living in Alabama: $44,529 per year
The Bureau of Economic Analysis cites that the average cost of living in Alabama is around $44,529 per year for a typical single individual.
This is good news for anyone who’s thinking of moving to Alabama, as MERIC’s 2024 Cost of Living Index actually ranked Alabama as having the 5th lowest cost of living in the United States. The only other Southeastern state to beat Alabama on that list was Mississippi.
As a whole, the Southeastern United States region is fairly affordable when compared to the nation at large. It’s hard to go wrong if you’re looking to settle down without paying an arm and a leg.
We’ve broken down the major costs of living into five key categories to help paint a picture of what annual expenses look like in Alabama.
|
Category |
Average Annual Per-Capita Cost in Alabama |
|
Housing and Utilities |
$7,218 |
|
Health Care |
$7,505 |
|
Food and Beverages (nonrestaurant) |
$3,833 |
|
Gasoline and Energy Goods |
$1,502 |
|
All Other Personal Expenditures |
$24,471 |
Housing Costs in Alabama
Average Housing Costs in Alabama: $802 to $1,351 per month
The average home in Alabama costs around $226,118, according to Zillow’s January 2025 housing data. This is almost half of the national median sales price of an existing U.S. home of $355,328, according to Zillow.
• Median monthly mortgage cost: $1,386
• Median studio rent: $802
• Median one-bedroom rent: $849
• Median two-bedroom rent: $935
• Median three-bedroom rent: $1,086
• Median four-bedroom rent: $1,351
• Median gross rent: $982
Home prices and rental costs vary widely depending on where you live. When calculating your monthly budget, don’t forget to factor in other costs like utilities, taxes, and maintenance in addition to your monthly mortgage payment.
Below are the typical 2024 home prices for major cities in Alabama, according to Zillow.
|
Alabama City |
Typical Home Price* |
|
Birmingham |
$246,548 |
|
Huntsville |
$300,972 |
|
Mobile |
$188,321 |
|
Montgomery |
$193,072 |
|
Tuscaloosa |
$215,479 |
|
Daphne |
$379,134 |
|
Auburn |
$310,509 |
|
Decatur |
$223,247 |
|
Dothan |
$178,311 |
|
Florence |
$202,662 |
|
Anniston |
$155,262 |
|
Gadsden |
$169,026 |
|
Albertville |
$231,325 |
|
Cullman |
$233,252 |
|
Talladega |
$180,358 |
|
Enterprise |
$194,636 |
|
Scottsboro |
$190,100 |
|
Ozark |
$152,182 |
|
Selma |
$77,275 |
|
Troy |
$162,189 |
* data as of December 2024
Utility Costs in Alabama
Average Utility Costs in Alabama: $398 per month
Alabamians can expect to pay a total of $398 per month on their utility bills. This includes electricity, gas, cable, and water.
The exact monthly tally will depend on your property, utility usage habits, and the type of services you choose (e.g., internet only or TV and internet). We’ve broken out some common utility costs below.
|
Utility |
Average Alabama Bill |
|
Electricity |
$163 |
|
Natural Gas |
$81 |
|
Cable & Internet |
$118 |
|
Water |
$57 |
Sources: U.S. Energy Information Administration, Electric Sales, Revenue, and Average Price; Statista.com, “Average monthly residential utility costs in the United States, by state”; DoxoInsights, U.S. Cable & Internet Market Size and Household Spending Report; and Rentcafe.com, What Is the Average Water Bill?
Groceries & Food
Average Grocery & Food Costs in Alabama: $319 per person, per month
Alabamians pay an average of $319 per month on grocery and nonrestaurant food costs, or about $3,833 per year, according to the BEA’s latest Personal Consumption Expenditures report.
Alabama’s grocery and food costs are fairly cheap when compared to the rest of the nation; this is fairly typical of Southeastern states in general.
However bear in mind that these expenses will vary depending on where you live within Alabama. Expect to pay more for groceries if you’re living in a larger urban city like Mobile versus a smaller city like Decatur.
Below are the Council for Community and Economic Research’s rankings of food costs across major Alabama cities as of 2024.
|
Alabama City |
Grocery Items Index |
|
Birmingham |
99.3 |
|
Anniston-Calhoun County |
97.0 |
|
Auburn-Opelika |
95.9 |
|
Florence |
94.3 |
|
Decatur-Hartselle |
95.6 |
|
Montgomery |
99.0 |
|
Huntsville |
100.2 |
|
Mobile |
98.7 |
|
Dothan |
96.5 |
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Transportation
Average Transportation Costs in Alabama: $10,561 to $19,652 per year
If you’re planning to drive through the Land of Dixie, you’ll want to keep an eye on your transportation costs. Fuel costs in the Southeast aren’t cheap, and those bills can quickly add up (particularly if you’re driving American muscle!).
Depending on your ride of choice, family size, and the number of cars you choose to own, your transportation costs can vary widely. We’ve broken down estimates of these costs as calculated by MIT’s Living Wage Calculator for 2024.
|
Family Makeup |
Average Annual Transportation Cost |
|
One adult, no children |
$10,561 |
|
Two working adults, no children |
$12,222 |
|
Two working adults, three children |
$19,652 |
Health Care
Average Health Care Costs in Alabama: $7,505 per person, per year
The average annual per-capita cost of health care in Alabama is $7,505, according to the BEA’s Person Consumption Expenditures report.
Within the Southeast, Alabama has the second-lowest health care costs, with only South Carolina coming in cheaper.
While health care costs can vary depending on your age, health history, and location, you can minimize your expenses by shopping policies across multiple insurance providers. Alabamans can shop for health insurance providers using the federal insurance marketplace, HealthCare.gov.
Child Care
Average Child Care Costs in Alabama: $714 to $1,031 per child, per month
Regardless of who you are, there’s no getting around childcare costs when it comes to having a family. Fortunately, Alabama happens to have the second-lowest child care costs in the country, according to the Economic Policy Institute. Only Mississippi had lower child care costs.
However, that doesn’t mean that child care is cheap; far from it. Depending on the type of care you need, child care can cost thousands of dollars a month. This can be especially unforgiving for younger families where both spouses have to work.
If you need help paying for child care costs, the Alabama Department of Human Resources lets eligible families apply for Subsidized Day Care Services. Check out the Federal Child Care and Development Fund website for more information.
We’ve provided estimates of the average child care costs in Alabama below, per data from CostofChildCare.org.
|
Type of Child Care |
Average Cost Per Month, Per Child |
|
Infant Classroom |
$1,031 |
|
Toddler Classroom |
$813 |
|
Preschooler Classroom |
$714 |
|
Home-Based Family Child Care |
$822 |
Taxes
Highest Marginal Tax Rate in Alabama: 5%
Alabama has a graduated-rate income tax structure where the highest tax bracket is assessed at a 5% marginal tax rate, according to the Tax Foundation’s State Individual Income Tax Rates and Brackets for 2025.
Taxes are a part of Alabama’s cost of living that can’t be avoided. Its top marginal tax rate isn’t too bad, especially when stacked against other southern states like Georgia, which has a top tax rate of 5.39%, or South Carolina, with a rate of 6.2%. But that’s also more than its neighbors Tennessee and Florida, which have no income tax.
Miscellaneous Costs
Now that we’ve covered the everyday costs of living, let’s take a look at the costs of some of Alabama’s greatest attractions.
• Gallon of Milo’s Famous Sweet Tea, founded in 1946 and headquartered in Bessemer, AL: starts at $3.72
• Adult tickets to the U.S. Space and & Rocket Center in Huntsville, AL: $30
• Shrimp & Grits at Classic on Noble in Anniston, AL: $17-$28
• A Famous Fried Chicken Lunch Plate at Martin’s in Montgomery, AL: $12.99
Alabama’s collection of beautiful woodlands and gulf shores certainly doesn’t cost anything to visit; it’s one of those unique states where individuals can hike in the morning and enjoy sandy coastal beaches in the afternoon.
The state of Alabama is also rife with historic and educational attractions, from the U.S. Space & Rocket Center to the USS Alabama Battleship Memorial Park.
However, the one defining feature of Alabama is football.
Akin to a religion, you haven’t experienced college football until you’ve been to Alabama. The University of Alabama-Auburn University rivalry is one of the most heated rivalries in American football, and this matchup plays out every year at the annual Iron Bowl.
This matchup is especially heated as both schools are located within the same state and locals are split across each team. This contention plays out between neighbors, coworkers, and even within families.
Alabama certainly has its vibes. Whether you’re trying to beat the hot summers, sipping on a sweet tea or your favorite brand of “coke,” or you’re enjoying a barbeque cookout at the tailgate of your favorite football team, you’re sure to find something about Alabama that fits your niche.
Recommended: What Are the Average Monthly Expenses for One Person?
How Much Money Do You Need to Live Comfortably in Alabama?
While the amount you need to live comfortably will vary based on your lifestyle, MIT’s Living Wage Calculator cites that the typical single, childless Alabaman will need to earn $20.50 an hour, or $42,640 per year, to qualify for a “living wage” in the state.
When it comes to costs, Alabama doesn’t do half bad, as U.S. News & World Report’s Affordability Rankings ranked Alabama the 3rd most affordable state in the union, which is close to MERIC’s ranking of the 5th lowest cost of living in the U.S. Depending on your personal tastes and income, a comfortable life in Alabama is more within reach than you may think.
What City Has the Lowest Cost of Living in Alabama?
The city of Anniston has the lowest cost of living in Alabama, according to the Council for Community and Economic Research’s (CCER) 2024 Cost of Living Index data.
To help you compare the cost of living across different cities in Alabama, we’ve displayed the three cities with the lowest cost of living in the State.
Florence
Florence is home to around 42,400 residents per census estimates and sits on the banks of the mighty Tennessee River. The city is host to gorgeous views of the riverfront and is home to the University of North Alabama, the oldest collegiate institution in the state. It also is just across the river from Muscle Shoals, AL, home of FAME Recording Studios, birthplace of the famous Muscle Shoals Sound. The city ranked well because it had the second lowest housing costs of Alabama’s major cities, and the lowest overall score at 83.5.
Decatur
Decatur also sits just off the shores of the Tennessee River, about 48 miles east of Florence, and the town boasts lots of opportunities for recreation on the water. Nearby Wheeler Wildlife Refuge offers outdoor activities from bird watching (and their annual Festival of the Cranes) to fishing and camping. Home to just over 58,000 people per census estimates, Decatur is a short 30-minute drive to bustling Huntsville, and had the second-lowest overall CCER score of 84.3.
Anniston
Originally an iron town founded in 1872, Anniston sits at the foothills of the Appalachian mountains on the cusp of the Talladega National Forest. The city is surrounded by scenic views and woodlands. It has the third lowest overall score at 84.8 and the lowest housing costs of any major cities in Alabama according to the CCER’s 2024 data.
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Alabama can be a great option for football fans looking for a state with hot summers but great barbecue to make up for it. If the money you save doesn’t go directly to game tickets, you might find Alabama to be an affordable place to live and raise a family.
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