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Current Mortgage Rates Today in Hillsborough County, Florida

Interest rates are a vital deciding factor when purchasing a home. Higher interest rates make it challenging for buyers to get affordable payments or be approved for a loan. For instance, higher rates equal higher mortgage payments, while lower rates result in lower mortgage payments.

However, you need to learn how interest rates are determined to understand what you can do to get the lowest rates from reliable and trustworthy lenders. Mortgage rates are determined through several factors, including:

  • Credit score
  • Home location
  • Loan amount
  • Home price
  • Loan term
  • Down payment
  • Loan Type
  • Interest rate type, etc.

Homebuyers can only control one aspect of this complicated dance: whether you check all the boxes that qualify you to get a loan. Lenders assess your qualifying factors to determine your interest rates. For instance, better qualifying factors will give you better interest rates. However, it all starts with current interest rates.

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The current economy affects mortgage rates today. For instance, rates tend to increase if the current economic outlook is good and fall if the economy isn't that great. It could go backward sometimes, and here is the reasoning. Borrowers can afford more when the economy is excellent, increasing rates slightly.

Also, unemployment rates increase when the economy backtracks, making it harder for borrowers to take loans. As such, lenders lower rates to attract more borrowers.

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

Why should you stay informed about mortgage rates today?

Banks get rate sheets daily. However, this doesn't mean rates change daily, although they can. They can change many times daily. Thus, if you see an exciting interest rate, you should talk with your lender about locking it in before it rises. If you plan to buy a home in Hillsborough County, you should read on to stay informed.

Did you know that a slight change in your interest rate could cost you thousands of dollars throughout your mortgage's lifetime? Thus, it pays to be informed about factors that affect your mortgage rates today. Doing this arms you with the skills and information to shop around and get better deals.

The information gained helps you have confident conversations and negotiations with lenders. You could ask questions and understand the loan choices. You'll get a sense of typical rates and know when to ask more questions or if you should quit and shop around after getting your quote. Let's look at other factors that determine mortgage rates.

Factors Affecting Mortgage Rates Today

Mortgage rates are determined by several factors (both market and personal) in Hillsborough County, Florida. These include:

Investors and the Bond Market

Remember, the mortgage money is sourced from various places, including brokerages and banks. However, most of it comes from investors from what's collectively referred to as the "capital markets." It involves investors interested in buying debt instruments, i.e., bonds. As such, entities selling bonds compete to get the investors' money.

Investors prefer low debt payments and high investment returns. They offer various instruments (products) structures that differ in risk and return and are spread over varying periods. The offerings compete with other investments with a reasonably similar performance like corporate bonds, US Treasuries, foreign bonds, etc.

Investor demands play a huge role in market yields since they have hundreds of other ventures they could put their money in. Investors will move their money elsewhere if this doesn't happen, which affects mortgage rates today. Additionally, the market is overcrowded, with many sellers competing for investors.

Thus, the product falls and rises trigger investment strategy changes. For instance, sellers must change strategies to attract more investors if demand falls enough. They mostly do this by increasing interest rates. However, it is not as easy as stated since the sellers have two buyers: investors and homebuyers.

Thus, they have to ensure the interest rates are high enough to attract investors and low enough to attract homebuyers. Several factors affect investors' interest, including appetite for the product, inflation, economic growth, declining interest yields, etc. In turn, this affects the interest rates on mortgages.

Credit Scores

Your credit score is another primary deciding factor when applying for a mortgage. Lenders use credit scores to predict the borrower's reliability and ability to repay the loan. Generally, borrowers with high credit scores tend to receive low-interest rates than those with low credit scores.

Your first step should be checking and reviewing your credit report for errors before you begin shopping for mortgages. Credit scores are determined through the information found on your credit report. The report shows your credit history, including credit cards, loans, and payment history.

You should dispute any errors with the credit reporting company since such errors could lead to lower credit scores. This could prevent you from qualifying for loans with better rates and terms. Resolving these issues could take some time. Thus, it would be great to start the process earlier on.

Home Location

Mortgage rates vary slightly depending on which state you plan to purchase your home. As such, you'll need to do your research depending on which state and county you live in and factor in your loan amount and type. Additionally, you should consider whether the home is in a rural or urban setting.

You should shop around with various lenders, including local ones. Remember that varying lender institutions have varying loan products and rates. Thus, you should talk to multiple lenders to determine all the options you have at your disposal before making a decision.

You should do this regardless of whether you want to purchase a home in an urban or rural area.

Home Price and Loan Amount

Homebuyers are more likely to pay higher interest rates when applying for loans that are too small or too large. Note that your loan includes your closing costs and home price minus your down payment. Depending on your circumstances, the interest rate could be applied to your closing costs, loan type, and mortgage insurance.

You probably have your home's price range in mind if you've already started shopping for homes. However, if you're starting, you could get a better idea by looking at real estate websites. You should play around with the prices and research to see how your interest rates come out.

Down Payment

Your down payment affects your interest rates. Generally, a more significant down payment equals lower interest rates since lenders view you as a low-risk borrower because you have more stake in your property. Thus, you could get lower interest rates if you put a 20% or a higher down payment on the property.

Lenders require individuals who don't put in a 20% (or more) down payment to get mortgage insurance, sometimes known as PMI (Private Mortgage Insurance). The insurance protects lenders against borrowers who default on their loans; however, it adds to your total monthly mortgage repayment.

Exploring your options further, you'll discover that lenders may offer you slightly lower interest rates with a down payment that's just under 20% than what is offered to those that pay more than 20%. This happens because you'll be paying mortgage insurance, decreasing the risk incurred by your lender.

Ensure you factor in all costs since you may end up paying more during your loan's lifetime due to mortgage insurance payments. However, you should look at the total costs you'll incur from your loan rather than your interest rate. Make all these calculations to avoid any surprises in the long run.

Loan Term

Your loan term refers to how long you'll take to repay your loan. Generally, loans with shorter loan terms have low-interest rates and overall costs. However, they'll have higher monthly payments. Thus, you should aim to strike the perfect balance between monthly payments and interest rates.

Interest Rate Type

There are two types of interest rates adjustable and fixed. Adjustable interest rates start fixed; however, they can change over time depending on the market. Fixed interest rates remain the same over the length of the loan.

Initially, your adjustable interest rate may seem lower than your fixed interest rate, but this may change over time if the rate increases.

Loan Type

There are various mortgage loans, including FHA, VA USDA, and conventional loans. Lenders choose what products to offer and set eligibility criteria for each loan. Thus, you should check to see which of these loans you qualify for and understand all available options.


Your interest rates can also change depending on your occupancy. For instance, you may get lower interest rates if you use your home as your primary residence since it will pressure you to make your monthly payments on time.

Individuals applying for a mortgage to purchase a second home may get high-interest rates since they are more likely to default.

Why are Interest Rates Currently Where They are?

Several economic factors have led to increased mortgage rates. For starters, there has been a persistently high inflation rate. For instance, June's inflation reports show a 9.1% inflation. This is the highest it's ever been in 40 years. The Federal Reserve increased its benchmark short-term interest rate to combat the rising inflation.

The Fed raised interest rates by 50 basis points (May), 74 basis points (July), and 75 basis points (July). The inflation report led to mortgage hikes even before the Fed made an announcement.

Additionally, the rate hikes were influenced by the COVID-19 pandemic, the invasion of Ukraine, and other global factors. The Founder and CEO of InstaMortgage note that the mortgage industry has never been more volatile, and many factors affect mortgage rates today. This forces the market to adjust to new cycles almost daily.

Mortgage rates for real estate purchase

How to Get Better Mortgage Interest Rates

Here are several tips to help you improve your chances of getting a low rate:

Improve your credit score

As mentioned earlier, your credit score determines your interest rates or getting approved for a mortgage. As such, it makes more sense to improve your credit score to stand a better chance. You should improve your credit score if it's less than 760. You can do this by paying your balances and ensuring you make subsequent payments on time.

An excellent credit score enables you to get better mortgage interest rates. Placing a down payment of more than 20% and having a good credit score gives you a better chance of getting a low credit score. You should use a loan savings calculator to determine how much you can save on the mortgage if you improve your credit score.

Save for and make a more significant down payment

The bigger your down payment, the lower your interest rates because the lender sees you as a low-risk borrower. You could get a loan with a low down payment; however, you'll have to pay mortgage insurance, which can make your total loan repayments more expensive.

Saving for a more significant down payment helps you avoid the risk of paying expensive PMI premiums. You could wait and have enough equity in the property to cancel the PMI repayments; however, you may have already done the damage. You should take this as a last option.

Consider getting a short-term loan

You should consider a short-term loan since it has less interest. However, you'll have to make higher monthly payments. You could also consider an adjustable mortgage since it has a lower initial interest rate.

However, you should also be careful since the rates could increase with time. For instance, 30-year rates were 2.87 %, while 15-year rates were 2.35 % in September 2020.

Increase your income

Increasing your income puts you at a better chance of getting reasonable interest rates because you'll spend less of your income making monthly payments. The lender will assess your income to debt ratio and offer individuals with more and less debt better interest rates since they present less risk.

Such individuals indicate that they are likely to keep making monthly payments if something goes wrong. Your ideal debt-to-income ratio should be at (or below) 36%. If that doesn't work, you should try decreasing your debt.

Decrease your debt

Decreasing your debt will place you at better standing with your lender, allowing them to provide you with low-interest rates.

You can reduce expenses like vacations and your monthly bill payments. Lowering your debt will also improve your credit score and help lower your interest rates.

Discount points

You can lower your interest rates by paying discount points; however, this is only worth it if you plan on getting a long-term mortgage. It may not work if you plan on refinancing or selling your home after a few years.

One point reduces your interest rate by 1% depending on market conditions, which can help reduce your burden when paying back the loan.

Fun activities to do in Hillsborough County, Florida

There are lots of fun children's activities in Hillsborough County, Florida, including:

Florida aquarium- penguins

Florida aquarium has all sorts of marine ecosystems that can provide a fun experience for children and adults. The aquarium contains exhibits of beaches, wetlands, and coral reefs with a collection of the most amazing sea life.

However, the highlight of your experience will be the penguins, and you can get a backstage pass and see the beautiful creatures shake their tail feathers, eat, and waddle.

Busch gardens

Visit Busch gardens and get to go on safari or ride a roller coaster. Bush gardens are where the 65-acre Serengeti meets an amusement park. The popular attraction has over 200 species to see. You may be spoilt for choice; however, you won't go wrong if you go on kangaroo, elephant, and hippo tours.

Laser ops

The 8000 sq ft. battle realm has an immersive, post-apocalyptic world, state-of-the-art equipment, with real-time tracking feedback and hit confirmation.

Your children will enjoy the intuitive game with amazing software that makes taggers realistic and easy to use. Laser ops are one destination your children are sure to love.

Grand Prix Tampa Family Fun Center

Have fun at the 12-km long whirlwind Big Track and race with your children on the Family Track. You could also take your children to the ropes course, fairytale mini gold, Castle Arcade, batting cages, or Turbo Bungy Dome.

Walt Disney World

Disney World has two water parks, four theme parks, and other attractions, including shopping and golf. It is the most famous theme park globally and can provide many unforgettable memories regardless of age. It's the best place you can take your kids to have fun in Hillsborough County, Florida.

Final thoughts

Hillsborough County is the best location for individuals that want to raise a family in a fun, beautiful, and exciting location. However, it's not enough to buy a home in Hillsborough County; you should buy your home the right way.

To do this, you must know the interest rates to get the best deal. Take your time, research, and don't forget to have some fun!

With over 50 years of mortgage industry experience, we are here to help you achieve the American dream of owning a home. We strive to provide the best education before, during, and after you buy a home. Our advice is based on experience with Phil Ganz and Team closing over One billion dollars and helping countless families.

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