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Current Mortgage Rates In Tampa FL

Current Mortgage Rates Tampa FL

Current Mortgage Rates In Tampa FL – As the attractive city of Tampa, Florida, continues to capture homebuyers. It’s no surprise that the local property market stays in the limelight due to vibrant culture, stunning beaches, and thriving economy of Tampa. Many people and families hold the dearest desire of having property. However, as prospective buyers embark on their homeownership journey, understanding current mortgage rates in Tampa FL brings significant savings to your pocket.

Making decisions that are in line with your financial objectives will be easier and more profitable if you are aware of the unique characteristics of mortgage rates. We investigate the Tampa real estate market’s complexities in this article and explain current mortgage rates, which have a significant impact on the affordability and viability of buying a property in this attractive region.

Calculate Mortgage Interest Rates For Tampa FL Using Mortgage Calculator

Let’s Know The Beautiful Tampa, Florida

Tampa, Florida, a coastal treasure on the Gulf, captivates visitors with its unique charm and modern allure. Beyond its famous beaches like Ben T. Davis and Fred Howard Park, Tampa boasts serene coastal escapes for relaxation and adventure. The city has rich in cultural heritage with neighborhoods like Ybor City that exude vibrant music, cuisine, and art scenes.

The city has beautiful parks, such as Lettuce Lake Park and Hillsborough River State Park, which provide wildlife encounters and eco-tours, are a haven for nature lovers. Tampa’s culinary and entertainment cultures are thriving thanks to athletic events, and a wide variety of cuisines in classy restaurants.

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Real Estate And Housing Trends In Tampa, Florida

Tampa, Florida’s real estate market has been showing great potential for profits right now. Therefore, it has become a dynamic and alluring location for both buyers and sellers.

Here are the highlights on key trends shaping the real estate market in Tampa:

  • There is a high demand for homes in the region, the city had 3,084 houses up for sale as of June 2023
  • Tampa’s distinctive listing price for a property is $489.9K, which has observed a rise of 8.9% over the previous year.
  • The median house sold price, $431K, indicates the real transaction values in the market
  • According to realtor.com, Tampa is a seller’s market at present, with properties selling on average in just 38 days. This quick pace highlights both the market’s great demand and its competitiveness, which favors sellers.
  • Offerings for buyers and renters include conventional open houses as well as chances like price-reduced properties, foreclosures, and newly constructed homes.
  • There are 4,165 rental homes available for individuals who are interested, with rates ranging from $769 to $949K per month, accommodating different budgets and tastes.

Current Mortgage Rates In Tampa FL

Here we present you the most updated mortgage rates in Tampa FL, updated by Zillow as of July 23, 2023.

  • Mortgage rates in Florida are now 4 basis points higher than the 6.59% national average. The average 30-year fixed mortgage rate is now steady at 6.63%.
  • The average rate for a 15-year fixed mortgage in Florida climbed by 2 basis points, from 5.88% to 5.90%
  • The average rate for a 5-year ARM is currently 6.74%.

Note: we advise our readers to visit a reputed and reliable broker/lender to know the exact mortgage rates that are calculated as per your financial history and financial requirement.

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Finding The Right Mortgage Product For You

There are different types of mortgages with their pros and cons for choosing the right mortgage is crucial. Understanding the mortgage products will help to make the right decision and find the best mortgage rate for you.

  1. Fixed Rate Conforming Mortgages: A mortgage with a fixed interest rate for the entire loan term. Monthly payments remain constant, providing payment stability.
  2. Fixed Rate Jumbo Mortgages: A mortgage with a fixed interest rate for the entire loan term, designed for homes valued above the conventional loan limit. Similar to conforming mortgages, it offers payment stability, but jumbo mortgages often have higher interest rates than conforming ones.
  3. Hybrid Adjustable Rate Mortgages: A mortgage where the interest rate is first fixed for a predetermined amount of time (for example, five years), after which it becomes adjustable. In contrast to fixed-rate mortgages, initial interest rates may be lower. After the predetermined time, if interest rates decline, your rate will likewise reduce without refinancing. However, your monthly payments will go up if rates go up.
  4. Interest Only ARMs: A mortgage where you only pay the interest for a set period (usually 3 to 10 years). After the interest-only period ends, your payments increase, and they might also adjust based on interest rate changes. During the interest-only phase, monthly payments are smaller, but larger payments are required afterward.
  5. FHA Loans: This loan program has been insured by the Federal Housing Administration (FHA). Currently, homebuyers can qualify for the loan with a 3.5% down payment. You can also use gifts/points for the down payment and closing costs. Moreover, there is no penalty for early return of funds back to the lender.
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Frequently Asked Questions About Mortgage Rates In Tampa, Florida

Q1:  What are the differences between annual percentage rates (APR) and mortgage interest rates?

Annual percentage rates (APR) and mortgage interest rates are two separate variables that determine how much it will cost to borrow money for a home.

  • The mortgage interest rate represents the percentage of the principal that a borrower pays to borrow the funds. This rate is used to calculate the borrower’s monthly payment.
  • On the other hand, the annual percentage rate (APR) incorporates not only the interest rate but also other expenses like origination fees, discount points, underwriting and processing fees, appraisal fee, etc. The APR allows borrowers to compare loans from various lenders as it reflects the overall cost of the loan.
  • As APR includes additional expenses, it is normally higher than the interest rate. Lenders are required to inform borrowers of the APR and interest rate before the execution of a mortgage agreement so that they are aware of the total cost they will be responsible for.

Q2: How often do interest rates on mortgages change?

Interest rates change on a daily basis based on market conditions, inflation, the monetary policy set by the Federal Reserve among other factors. Rates can sometimes change 2-3 times in the same day.

Q3: What is a rate lock on a mortgage?

An agreement between the lender and the borrower known as a mortgage rate lock ensures that interest rates won’t rise over a specific threshold while the loan application is being processed. This rate lock, which protects the borrower against any rate increases normally lasts for 30 to 90 days.

Take Away

A terrific lifestyle is available in Tampa, Florida, which boasts a robust economy, stunning scenery, a vibrant cultural scene, and first-rate amenities. Consider important factors including mortgage rates, real estate trends, and living expenses while searching for a property in Tampa.

Reliance Financial has been Tampa’s reliable and cost-effective mortgage provider. We have assisted countless people in realizing their aspirations of becoming homeowners. Our skilled experts offer individualized mortgage solutions in a transparent and convenient manner. Experience great customer service from our trustworthy and seasoned mortgage advisors in Tampa, Florida. Let us take you home.