Current Mortgage Rates Today in Franklin County, Florida

FICO Credit Score

Your credit score is the primary factor that determines how much interest you’ll pay on your loan. If you have a high FICO rating, you’ll likely pay a lower mortgage rate since you’re a creditworthy borrower. In contrast, a lower credit score attracts higher interest rates to help cover the risks to the lender.

The score is usually between 350 and 850 points. Typically, traditional mortgages require a credit score of at least 620 points, but you can get a federally-backed mortgage with 580 points. You can also work to improve your score by avoiding unnecessary debts and paying your bills promptly.

Down Payment

Lenders expect borrowers to place a down payment when applying for a home loan. The amount you put down determines your mortgage rate. The loan type usually ranges from 3.5% to 20% of the home value.

A large down payment minimizes your loan amount and reduces the risk to the lender, lowering your mortgage rates. In contrast, a small down payment makes you a risky borrower and increases the interest rates. The lender may require you to pay Private Mortgage Insurance (PMI) and monthly premiums to cover the risk.

Type of Loan

There are different types of mortgages, including conventional, VA, FHA, and USDA loans. These loans have varying mortgage rates. Traditional mortgages usually attract higher interest rates depending on the lender. After all, they have the discretion to set the terms, rates, and eligibility requirements.

In contrast, government-backed loans have lower interest rates because of the federal guarantee. The relevant national institutions promise to reimburse lenders if you default on your loan. For these reasons, many lenders are willing to offer lower rates on federally-backed loans.

Loan Duration

Various loan programs have varying terms or duration that determine how much you will pay in the long run. The period directly impacts the mortgage rates. The longer the loan duration, the higher the interest rates, and vice versa. It costs more to lend money for more extended periods.

Typically, mortgages are available in 15-year and 30-year terms. 15-year mortgages have lower interest rates but attract higher monthly payments. In contrast, 30-year mortgages have higher interest rates but lower monthly payments since it costs more to lend money for such a long period.

Loan Amount

The loan amount determines your interest rates. Repaying a substantial loan can be tricky, particularly during tough economic times. For this reason, your lender might charge a higher interest rate to cover the risk. In contrast, borrowing a smaller amount has reduced risks to the lender, and they might charge lower interest rates to match your mortgage.

Consider putting more money down if you want to borrow a large amount but pay lower interest rates. A substantial down payment minimizes your loan and reduces the risk to the lender by making your mortgage realistically payable.

Property Type

The type of property you intend to buy can define your mortgage rate, with primary homes attracting lower rates than secondary homes. Investment properties and vacation homes can also attract higher mortgage rates.

Paying a mortgage for a secondary home can be difficult during tough times. Lenders usually prefer borrowers who aspire to purchase primary homes because they will likely be more committed to paying off their debts. As such, mortgages for primary residences usually have lower interest rates.

Loan-To-Value Ratio

A loan-to-value (LTV) ratio compares your down payment against the loan to assess the risks of issuing you a mortgage. The LTV ratio also checks the home value against the loan amount borrowed. A high LTV ratio attracts a higher interest rate, while a lower ratio also has lower rates. Placing a large down payment can help improve your LTV ratio.

Home Value & Location

Housing prices can have a significant impact on mortgage rates. After all, the home value determines how much you will need to borrow minus the down payment. Borrowing a substantial amount means you may have to pay higher interest rates and vice versa.

The home location also defines interest rates since different states have varying mortgage rates. Moreover, the rates in rural and urban areas slightly differ.

Interest Rate Type

Interest rates on mortgages can be fixed or adjustable. The latter can rise and fall, severely defining how much you’ll pay. While fixed interest rates do not change throughout the loan duration, adjustable rates change multiple times.

The main advantage of fixed-rate mortgages is that they are predictable, allowing you to budget accordingly. In contrast, adjustable rates vary and might increase significantly as you continue remitting your repayments.

Market Factors Affecting Mortgage Rates

Mortgage rates are currently at where they are because of market factors such as Fed hikes, the bond market, inflation, the economy, CMT rates, and the secured overnight finance rate.

Here’s a breakdown of the market factors that impact mortgage interest rates:

The Economy

The economy and current mortgage rates are almost inseparable. If the country’s economy is doing well, you’ll pay higher rates since there’s more cash flow and lenders believe borrowers have more money to spend. Spending drops during tough economic times and lenders may lower interest rates to encourage more borrowing.

Employment Rates

The employment rates may influence mortgage rates. If the unemployment rate is high, mortgage rates might fall to cushion borrowers from the tough times. The interest rates may rise if low unemployment since borrowers have more spending power.

Inflation

Inflation indirectly impacts mortgage rates causing them to rise or fall. The prices of goods or services increase with rising inflation, influencing purchasing power. With increased inflation, the number of investors buying mortgage-backed bonds decreases, leading to higher interest rates.

Federal Hikes

The federal reserve plays a critical role in setting monetary policies to help control inflation and the economy. They may hike or lower fund rates depending on the economic situation.

Federal hikes make it expensive for lending institutions and mortgage companies to borrow. These institutions may pass on the hiked rates to homebuyers resulting in higher mortgage rates.

The Bond Market

Many lenders use treasury bond rates to determine mortgage rates. High treasury bond rates might mean lower interest rates because the high prices make bonds more valuable in the secondary market.

In contrast, low treasury bond prices might mean higher interest rates since the bonds are performing poorly in the stock market.

The Secured Overnight Finance Rate

Secured Overnight Finance Rate (SOFR) interest rate banks use to set adjustable mortgage rates based on Treasury repurchase transactions.

Typically, SOFT is set on the rate of overnight borrowing by banks. It can rise or fall depending on the adjustments pegged to the London Interbank Offer Rate (LIBOR).

Ways to Get Better Mortgage Rate in Franklin County, Florida

You can improve your chances of getting better mortgage rates by strengthening some of these factors.

Put More Money Down

Mortgage companies expect borrowers to place a down payment when applying for a home loan. The down payment demonstrates your commitment to own the property and pay your loan. It also minimizes the amount of money you have to borrow, reducing the risk to the lender.

Putting more money down can considerably lower your mortgage rates and monthly payments. Conventional loans have a down payment of about 20% of the home value. Other loans have a down payment starting from 3.5%.

Check Your Credit Score

Lenders usually use your credit score to predict your ability to repay your loan promptly. A higher score shows you are a credible consumer and less likely to default, while a lower score rates you as a risky borrower. Improving your FICO credit score can help lower interest rates significantly. After all, a good score shows your creditworthiness and reduces the risk to the lender.

Ensure your credit report has no errors or discrepancies to help maintain your FICO score. You can improve your score by paying your bills promptly, reducing your debts, and avoiding excessive borrowing. A credit service or counselor can help you assess your credit information and identify areas for improvement.

Improve Your Debt-to-Income Ratio

Your debt-to-income ratio is the percentage of your gross monthly income against your monthly debts. It shows lenders that you can comfortably pay your debts without straining financially. A high DTI ratio might attract higher mortgage rates as it means you are likely to default during tough times.

You can improve your DTI ratio by paying off some of your debts, cutting spending, and improving your income. A low DTI lowers the interest rates and improves your credit score in the long run.

Lock Mortgage Rates

Even though mortgage rates today are ever-shifting, you can get a good deal by monitoring the market. The margins might be small, but a lower interest rate has a massive impact on the overall cost of the loan.

The good news is that you can always lock an interest rate when it drops by consulting a reputable lender. However, you must first qualify for the loan to lock your mortgage rate.

Consider a Short-Term Loan

Mortgages have varying terms ranging from 5 years to 30 years. If you are a keen observer, you’ll notice that short-term loans have lower interest rates. After all, it costs lenders more to lend money for extended periods, given the numerous risks and associated fees.

If you want lower mortgage rates, consider taking a short-term loan. However, be ready for higher monthly payments, depending on the loan amount.

Buy Discount Points

You can lower your mortgage rates by buying discount points. As the name implies, discount points are fees paid to mortgage companies and lenders for discounted interest rates. You’ll be buying down your rate, which reduces the mortgage rate over the life of the loan.

Buying down your rate might seem expensive initially, but it goes a long way to reduce your monthly payments in the long term. Discount points are ideal for long mortgages spanning 30 years.

Shop Around

A loan is like any other product, and lenders have become more commercialized than ever. For this reason, it is a good idea to shop around for great deals by consulting at least three different lenders.

Each lender has varying terms, eligibility requirements, and mortgage rates. You will likely receive a loan estimate document highlighting the different rates and associated costs.

Top 5 Great Activities for Kids in Franklin County, Florida

Franklin County is home to the most acceptable outdoor and indoor activities for adults and kids alike. The county has interesting destinations and places of interest for the entire family.

Here’s a breakdown of great activities for kids in Franklin County:

Explore the Apalachicola National Forest

Covering over 600,000 acres, the Apalachicola National Forest is Florida’s largest forest. It has two vast wilderness areas, including Bradwell Bay and Mud Swamp/New River, for unforgettable outdoor activities.

The scenic trails are excellent for nature walks, off-road biking, hunting, and horseback riding. The forest also has several spots for fishing, hiking, camping, and get-togethers.

Your kids will love picnicking along the crystal-clear lakes in the woods. The area has several special purpose areas, including the Fort Gadsden Historical Site, Silver Lake Recreation Area, Leon Sinks Geological Area, and Trout Pond Recreation Area.

Tour the Cape St. George Island Lighthouse

The Cape Saint George Island Lighthouse is another exciting destination for kids and the entire family. This reconstructed 72-foot lighthouse has a rich history, having existed for over 150 years. The main attraction here is climbing the lighthouse for epic views of St. George Island.

It also features a museum and a gift shop with hundreds of handmade items and collectibles. Thanks to the numerous historical pictures and stories, your kids will love an educative tour of the museum. Since the area is pet-friendly, you can bring your furry friend along for a memorable family tour.

Go Fishing at Tate’s Hell State Forest

Franklin County is renowned for its numerous freshwater and saltwater fishing spots. The Tate’s Hell State Forest is one of the best locations for ardent anglers. This kid-friendly destination covers over 200,000 acres of basin swamps, floodplain forests, pine ridges, and sandhills.

Its proximity to the Apalachicola River makes it ideal for fishing and has excellent spots for hunting, camping, and nature trails. The park is also home to several endangered species, such as the red-cockaded woodpecker and the gopher tortoise, allowing your kids to learn about wildlife conversation from an early age.

Visit Bald Point State Park

The Bald Point State Park is another kid-friendly destination on St. James Island, south of Ochlockonee Bay. The park covers nearly 4,860 acres and includes a beach, conservation area, and eagle sanctuary. It is home to the Alligator point, renowned for its pristine, untouched beaches, unmatched fishing spots, and excellent wildlife viewing.

The best part about the park is that it is less crowded, and you’ll have the entire beach to yourselves, making it suitable for family picnics and quiet strolls. The shallow waters mean your kids can wade without any safety concerns.

Explore the John Gorrie Museum State Park

Ensure you visit the Camp Gordon Johnston Museum to learn more about Franklin County’s rich history. This historical museum showcases World War II history with pictorial stories, photographs, vehicles, uniforms, souvenirs, mess kits, and military artifacts.

The best part is that entry is free, but the museum accepts donations from well-wishers to help maintain the area. Please note that it opens only five days a week, every Tuesday through Saturday from 11 AM to 5 PM.

Get Approved Today

Current mortgage rates in Franklin County, Florida are dynamic, changing every day. You can find out about the latest rates by consulting a credible lender. Your lender can help you compare mortgage rates and lock in a lower interest rate.