Current Mortgage Rates Today in Hernando County, Florida

If you're in the market to buy or refinance a home in Hernando County, Florida, now might be a good time to act. According to data from Nerd Wallet, the average 30-year fixed-rate mortgage in Hernando County was 5.211% as of 2022, slightly below the national average of 5.540%. While rates are rising in Hernando County, they're still near historic lows.

Are you a first-time homebuyer? Learn more about the available FHA home loan options in Hernando County, Florida.

Factors That Affect Mortgage Rates Today

Understanding how mortgage rates are determined is crucial to making a good investment in today's real estate market. While market factors are involved in determining mortgage rates, there are other fundamental driving forces such as the Federal Reserve and the nation's economy.

These factors can change mortgage rates at different times, affecting how much home buyers can afford. Let's discuss this in more detail...

The Federal Reserve

The Federal Reserve is an independent government agency that serves monetary policy by regulating all U.S. banks and financial systems. In the past, the Federal Reserve Board has responded to economic downturns by lowering interest rates to stimulate spending and boost employment and production. The Fed has historically sought to maintain a strong bond market and stable employment rates to promote economic stability.

Today's Federal Reserve is trying to achieve the same goals, but with a new twist. The Fed began keeping interest rates low to incentivize more borrowing to jump-start the economy and prevent future recessions. This drove down mortgage rates, making homes more affordable and putting more money in the pockets of Americans who've opted to buy rather than rent.

The Fed works with the Treasury to determine the federal funds rate, a benchmark interest rate that affects all other interest rates. The Federal Reserve Board determines the federal funds rate based on economic reports and forecasts, recent changes in short-term interest rates, and inflation rates.

Credit scores

Credit scores are a means of evaluating a borrower's creditworthiness. It measures how well a borrower has met specific financial obligations and helps lenders determine the risk associated with loaning money to different borrowers.

Mortgage rates today in Hernando County, Florida, are usually based on credit scores. A high credit score is preferred over a lower one because it indicates an ability to repay past loans. It also shows the ability to pay future loans on time, which is essential during economic uncertainty and rising interest rates.

Mortgage lenders use information such as your credit history, income, and debt to determine your eligibility for a loan. If you have good credit, you'll likely get more favorable interest rates than if you have poor credit.

Your mortgage rate today is typically based on the loan-to-value ratio (LTV). LTV is determined by subtracting the loan amount from the cost of the property.

The Bond Market

The bond market is the collective term for bonds issued by governments, corporations, oil and gas companies, individual investors, and other organizations. Bonds are a way of raising money that exchanges some of the borrower's future earnings for the current value of a loan.

The bond market is behind many movements in mortgage rates today in Hernando County. When interest rates become too high for buyers or when demand for bonds decreases, investors may sell their holdings to find a more favorable rate.

Bond markets look at the past performance of a company or government to determine the level of interest rates. They'll review all aspects of a company's financial performance to determine its potential cash flows and what risks it might face. This includes its ability to repay past loans, accounting statements, and earnings.

For governments, bond markets can see how much revenue has come in and how much it needs for future obligations. This is often called a government's "fiscal outlook.

Loan Type

There are several different types of loans as well as refinancing options that determine mortgage and refinancing rates. Loan types include conventional loans, FHA loans, and VA loans. A conventional loan is a traditional mortgage loan that a bank backs.

Another type is an FHA loan. This government-sponsored program requires low down payments, and buyers with poor credit scores risk defaulting on their other obligations.

Home location

Home location is another factor that impacts mortgage rates today, and it's based on market factors. The closer you live to major cities like Tampa, Orlando, and Miami, the higher your interest rate. If you prefer to live away from these areas, you may get a lower rate than if you lived closer to them.

The average home price in Hernando County was $349,900 in 2022, lower than the national average of $428,700.

Home prices in Hernando County have increased by nearly $38,000 since January 2019. However, fluctuating factors can impact the price, such as the number of listings on the market and the overall housing market. Rather than looking at changes between cities, comparing similar homes in the same city might be best.

Mortgage Type

Mortgage rates are determined by the loan type, and there are a few different types to choose from. First-time home buyers may opt for an Adjustable-Rate Mortgage (ARM) or a Fixed-Rate Loan (FRM). Adjustable-rate loans have a stated interest rate and payment that can change over time. Fixed-rate loans have a set rate and payment over the entire term of your mortgage loan contract.

You may also opt for a 15-year mortgage loan or a 30-year mortgage loan. The primary benefit to the longer length of time is that you won't have to refinance your home often since it's more challenging to lower the interest rate once you've established it. However, you may reduce your savings if you have a job change or marriage requiring you to move.

The Health of the Economy

The health of the economy is always a driving factor in interest rates. Interest rates are always higher during economic hardship, as evidenced by the Great Recession. The Fed also hikes rates when there's an increasing risk of inflation when prices for goods and services rise.

Many experts believe that we're in a "Goldilocks economy." People are getting hired and making more money without seeing their wages increase at an alarming rate due to inflation. This is a balance that the Fed is monitoring closely.

In addition to inflation, the Fed monitors unemployment and opinions about whether the economy is slowing down. Hernando County, Florida's five-year average unemployment rate was 4.9% as of July 2019. This is lower than its peak of 11.3% during the Great Recession in December 2010 but higher than its lowest point of 2.2% in December 2000, according to Economic Modeling Specialists Intl..

Down payment

One of the most significant factors determining your mortgage rate is your down payment. Lenders want a more significant down-payment to get their money back. If you make a more significant down payment, there's less risk of defaulting on your loan and losing the money they invested in you.

Your down payment is typically used to pay for points and fees paid to the lender to lower the interest rate. The more down-payment you make, the lower your interest rate.

Occupancy

How you occupy your property affects the mortgage rate today. A lender will be interested to know if you're using your property as an investment property, second home, or primary residence. You will pay lower interest rates if you use the property for a primary residence. This is because you are likely not to default on payments to lose the home where you live in.

On the other hand, you are likely not to push yourself to pay for a second home if you encounter financial issues. As such, lenders will charge high interest to compensate for the risk of default.

How to get a Better Mortgage Rate Today in Hernando County, Florida

A reasonable home mortgage rate often balances your ability to pay and where you're buying. For example, if you have stable employment, a good credit score, and the money to make a sizeable down payment, there's less risk for the lender.

If you have the same characteristics but live in an area that's stagnant or struggling with an economic downturn, your interest rate will be higher.

Here are some things you can do to get a better mortgage rate:

Improve your credit score

Your credit score helps determine your interest rate, so if you have a bad credit score and need to buy a home urgently, you may find that you're stuck with a higher-than-ideal rate.

Even if your credit score isn't an issue, for now, planning can help get you ready for the next step in your life, like buying a home or retiring.

Save up for a down payment

If you don't have enough money saved up to cover the down payment, you may not be able to qualify for a loan. However, it may be better to take on debt than the default. Your monthly payments on a loan can be much higher than your mortgage rate and interest over the term of your loan.

So if you must borrow money and have little savings, consider paying off smaller loans with an interest rate lower than your current mortgage rate so you'll pay them off faster.

Understand your debt-to-income ratio

Using debt such as credit cards to get a better mortgage rate can be risky. Credit scores are based on your debt to income ratio, so if you're taking on too much debt, your rate will increase, and you could find yourself unable to buy a home. It's best to look at your total debt first and only take on more if you can handle it.

Consider a 15-Year Fixed-Rate Mortgage

If you have enough saved for a down payment, you may find a 15-year fixed-rate mortgage has lower rates. A 15-year mortgage gives you long enough to save for a down payment and can improve the life of someone who has just bought their first home. Your monthly payments stay the same the entire time instead of increasing yearly.

Lock in Your Rate

Rates will likely fluctuate during the closing process, which can take several weeks. After you sign the home purchase agreement and have secured your loan, ask your lender to lock in your rate. The service sometimes comes with a fee, but it often pays for itself, especially in a rising rate environment.

Great Activities for Children in Hernando County, Florida

Like many Florida counties, Hernando County offers a variety of options for family-friendly activities, including concerts, festivals, and the arts. Hernando County is also home to many parks and trails that make it easy to get outside with your kids.

Whether you do it outdoors or indoors, these are the best places in Hernando County, Florida to take the kids:

Bounce City Brandon

One of the most popular bounce houses in the area, Bounce City Brandon, is an excellent place for kids to work off excess energy. The facility has multiple inflatable castles and slides that can entertain your kids for hours.

This indoor playground is perfect for active kids, who will love the giant inflatable slides and tubes. There are also climbing structures and bouncy houses for kids of any age. It's open daily, with prices ranging from $8 to $10 per child during non-holiday hours. Check their website for discounted rates around holidays and special events. Reservations are strongly recommended.

Catapult Adventure Park

Offering something for the whole family, Catapult Adventure Park is home to a range of activities and attractions, including a climbing wall, Zip Lines, and more. The park also features a cafe that is open during business hours.

From the climbing wall to the zip lines, there are plenty of reasons to spend an entire day here. If you plan on visiting this attraction with small children, check out their website for other options like farm animals and face painting.

Natures Discovery

At Natures Discovery, you'll spend the day exploring the great outdoors. The park is located in Spring Hill and features several activities that young and old alike enjoy. From natural habitats to conservation education, you'll get to learn while you play here. Special events are offered throughout the year as well.

Families can spend hours playing and learning at this eco-friendly park. Natures Discovery also offers a variety of options for kids, including a moon bounce, sandbox, and more.

This is the perfect place to let the kids get dirty by playing in the sandbox. There's also a variety of fun animal exhibits and hands-on activities they can enjoy throughout the day while their parents catch up on some reading or relax at one of their many benches.

Bangin Bungee Kidz Zone

If you're looking for a place to let the kids bounce off the walls, then you've got to check out Bangin Bungee Kidz Zone, a fun indoor play center for children.

This is one of the best places in Hernando County for active kids who will love all the different activities offered here. From Bouncy Castles to Trampolines, there are plenty of fun things they can do here.

Sesame Street Safari of Fun

This attraction is a must-see if you're a big kid at heart. Sesame Street Safari of Fun is an indoor theme park based on a popular children's show. Families can enjoy some of their favorite characters from the beloved TV show at this park in a safe and controlled environment.

With tons of rides, attractions, and special events, there's something for everyone at Sesame Street Safari of Fun. For example, kids can play games with Elmo and Cookie Monster. There's also a Cotton Candy Cart where you can buy some on-site.

Let an Expert Help you get the Best Mortgage Rates!

Hernando County is one of the most popular Florida areas with buyers and investors alike. With the option of many different schools and plenty of recreational opportunities, this is the best place to buy a home in Hernando County, Florida. It's a great place to live, work, and play.

Getting the most out of every day you spend searching for a home is essential. Whether that means finding the best home for you or working with a lender who can get you the best rates possible, it pays to have an expert on your side. They will give you the best tools and advice to make the most of your buying experience.