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Florida
Mortgage Calculator
Welcome to the Florida Mortgage Calculator where we provide a powerful tool to navigate the world of mortgages in the Sunshine state. Whether you're a first-time homebuyer or considering refinancing, our Florida Mortgage Calculator is designed to offer valuable assistance tailored specifically to your state.
Using this calculator, you can understand your financial commitments, estimate your monthly mortgage payments, explore different interest rates, and factor in important elements such as property taxes, private mortgage insurance, and closing costs.
This analytical tool empowers you to make informed decisions about your Florida mortgage, ensuring you have the knowledge and confidence to achieve your homeownership goals. Count on New American Funding to guide you on your path to success in the Florida real estate market. Also, see FHA Loan in Florida for details and requirements for a home in the state. If you are looking to move to Florida, see First-time Homebuyer Guide for Florida.
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Florida Home and Mortgage
Stats to Know
County | Avg. Home Price | Avg. Days on Market |
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Source of Info PropertyPath
Florida Housing Market Overview
According to the Census Bureau, Florida is the third most populous state in the U.S. with a population of 22,244,823 in 2022. Florida experienced a population increase of 1.9% to become the fastest-growing state in 2022, continuing the trend of population growth across the Southern region. Florida’s growth is attributed to positive domestic net migration. As people move through the U.S., Florida remains a common destination.
It is important to note that the conditions of the housing market vary significantly in different locations throughout the state. The biggest urban areas of the state are Jacksonville, Miami, Tampa, Orlando, and St. Petersburg. Each part of the state, including its major cities, varies in terms of its housing market: For instance, the median listed home value in Miami as of May 2023 was $509,760 while in Jacksonville, it’s roughly $303,000.
The median number of days homes stayed on the market, known as DOM (Days on Market) was 42 days as of May 2023. This is above the national average and is longer than this time last year. How long a home stays on the market indicates the competitive level of the housing market. When homes stay on the market longer it give buyers more time to negotiate for the home they want as well as more control over the process.
Florida Mortgage Rates
Mortgage rates change daily and are affected by numerous factors. These can include the current state of the economy, the geographic location of your property, and changes in government laws and regulations. Keeping track of the current rates in your area can help you make more informed decisions regarding your mortgage journey.
Factors in Your Florida Mortgage Payment
Property Taxes
Florida has falls near the middle of the 50 states when it comes to property taxes. The average effective property tax rate in Florida stands at .97%. However, property taxes vary by county, so your exact tax will depend on where in the state your property is located. Fortunately for Florida homeowners, the state offers various exemptions that borrowers may be able to qualify for. These include the homestead exemption and the Save Our Homes limitation. There are also potential benefits that may be available to people with disabilities, veterans, and senior citizens amongst others.
The average effective property tax rate in Florida represents the percentage of the appraised value of a home that homeowners are required to pay in property taxes. This rate can vary depending on the local tax rates in different areas of the state. Each county in Florida conducts an annual assessment to determine the current market value of properties.
Private Mortgage Insurance
Our Florida mortgage calculator indicates that borrowers who make a down payment of less than 20% on a Conventional loan may be required to obtain private mortgage insurance (PMI). PMI protects the lender in case the borrower defaults on the loan. The cost of PMI premiums can vary significantly, ranging from 0.5% to nearly 6% of the loan principal. This variation depends on factors such as the amount of the down payment, the type of loan, the loan term, and the borrower's credit score.
Borrowers need to consider the potential impact of PMI on their overall mortgage expenses. While PMI can increase monthly payments, it may be canceled under specific conditions, such as reaching a certain loan-to-value ratio or making additional principal payments. To better understand their specific PMI requirements and options, borrowers are encouraged to consult with their Loan Officer. By doing so, they can make informed decisions and develop strategies to manage PMI effectively, ensuring a smooth and successful homeownership journey.
Closing Costs
When purchasing a home in Florida, it is essential to consider the specific closing costs associated with the state. Closing costs are extra fees and expenses that are required when purchasing a home. These are in addition to the price of the property itself and usually include things like a property appraisal, lender fees, insurance, and the cost of a credit report.
Florida’s closing costs average between 2%-5% of the home’s overall purchase price. While Florida has no state income tax, they do have one of the highest averages of closing costs in the country. So, you will want to make sure you factor them into your budget early on. Florida also splits the responsibility of closing costs between the buyer and the seller, so be sure to check with your Loan Officer to find out what exact payments will be expected of you.
Considering the closing costs and associated fees can help you make informed financial decisions and effectively plan for your dream of homeownership in the Sunshine state.
Typical Costs When Buying A Home in Florida
Homeowners Insurance
While homeowners insurance is not required by law in Florida, mortgage lenders usually require borrowers to have it in order to qualify for a home loan. This is because the home is used as collateral against the loan, putting lenders at risk if something happens to the property. Homeowners insurance in Florida is among the highest in the nation, averaging $2,385 per year, which is 31% higher than the national average.
Insurance rates vary according to factors like geographic location and the buyer’s credit score, so what a homebuyer pays in Miami will likely be different than what they pay in Jacksonville. Likewise, people with different credit scores are also likely to pay different amounts. A higher credit score can mean lower insurance rates, while a lower score can mean a buyer will pay more for insurance.
Private insurance is available across the state, but there is also a government insurance option for people who may not be able to obtain private coverage. It is called Citizens Property Insurance Corporation and is considered an “insurer of last resort.” It was created to help more homebuyers obtain homeowners insurance and has different qualifications than private lenders.
Home Inspection
Homeowners can expect to pay approximately $250-$400 for a home inspection in Florida, depending on the specific services required. Additional fees may apply for certain services. Though it is not always required by your lender, a home inspection is recommended.
It is an important tool to help buyers understand the quality of the home they are purchasing and can help you plan or negotiate any needed repairs. Getting a home inspection also allows borrowers to gauge the accuracy of the seller’s asking price, giving them a platform to renegotiate if there are any issues that might be costly to fix.
Radon Map
While the cost of a radon test or mitigation system is not typically included in the standard closing costs, it is an important consideration for buyers concerned about radon gas levels in their prospective homes. Buyers in Florida may want to include radon testing and mitigation as part of their home inspection process, considering the potential costs of these additional services. By addressing radon concerns early on, buyers can make informed decisions and ensure the safety and well-being of their future homes.
Home Warranty
Home warranties are service contracts that cover repairs or replacements of major home systems and appliances. While home warranties are not typically included as part of standard closing costs in Florida, they are an option buyers can consider during home buying. The cost of a home warranty can vary depending on factors such as the coverage level and duration.
Including a home warranty in the closing costs would require negotiation and agreement between the buyer and the seller. It's important for buyers in Florida to carefully review the terms and coverage of the home warranty before making a decision. Obtaining a home warranty could be beneficial as it can provide financial protection against unexpected repairs or replacements of covered items in the home.
Title Insurance Premium
Lender’s title insurance is a common requirement by lenders for homebuyers. Some homebuyers also opt to pay for owner’s title insurance as well, since this will protect them personally against issues arising from title conflicts. Owner’s title insurance protects the homebuyer in case of title issues such as conflicting ownership claims of the property, outstanding lawsuits regarding the property, and fraud.
Lender’s title insurance protects the lender in a similar way. If the seller does not have the legal right to transfer the title to the property, the lender will be protected against potential financial losses. The title insurance premiums for both types will depend on factors like your geographic location and the price of the property itself.
How To Calculate Your Florida Mortgage Payment
Calculating your mortgage payments may seem complicated at first. There are a lot of factors to consider when you start trying to figure out your mortgage. Each person has their own unique circumstances and financial goals to think about as you plan for your future.
Our mortgage calculator can simplify the process and help you take some of the guesswork out of planning for your dream home. Just input the necessary information into our calculator and you’ll be able to see various options. This information includes the home price, down payment amount, the ZIP code of the property, your credit score, and mortgage rate. There are also advanced options where you can compare various loan types and terms and factor in extra costs like home insurance.
Florida Jobs and Economic Factors
Florida’s GDP has grown to over $1tn making it the fourth largest economy in the U.S. and ranking it in the top 20 globally. Its job market has continued to grow at a steady pace with a yearly average growth in employment of 1.7% over the past five years. The top three sectors of employment are real estate/rental and leasing, healthcare/social assistance, and professional/scientific and technical services and its unemployment rate was 2.8% in 2022.
Much of Florida’s employment opportunities come from major corporations who do business in the state. In fact, the top three companies in the state in 2022 were Walmart Inc., Walt Disney Co, and Amazon.Com, Inc. These three companies combined were responsible for the top 2.2% of all employment in the state. Florida’s tourism sector is also regaining traction in the wake of the pandemic and is predicted to grow by 4.4% in 2023-2024.
State economies are affected by the same patterns as national ones. These can include changes in laws, international trade relations, and shifts in government. However, with a pattern of consistent growth both in population and in GDP, Florida is likely to remain a significant state in the U.S. economy.
Florida First-Time Homebuyer Resources
- First-Time Home Buyer Guide
- First-Time Home Buyer Loans
- Pathway Program – Down payment assistance