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Current Mortgage Rates Today in Marion County, Florida

Mortgage interest rates usually fluctuate regularly. Although you might not control these changes, gaining insight into what typically happens is helpful. With this information, you'll know if your lender is taking advantage of you or if your interest rate is within the typical range. Like many other borrowers in the country, you're probably trying to find the lowest interest rates on your mortgage.

But first, you need to understand factors that affect mortgage rates today. With this knowledge, you'll have an easier time buying your home and negotiating your loan. Besides, you'd also want to know how changes in different factors affect interest rates.

Mortgage rates usually depend on multiple factors. While you can control some aspects, others are well beyond your control.

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With this information, you can have confidential discussions with lenders. Also, you'll be in a better position to understand your loan choices. Read on to learn more about mortgage rates today in Marion County.

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

What are Mortgage Rates?

Typically, mortgage rates today determine the interest accrued on your home loan. You can compile less interest and pay less for the house with a lower rate. Lenders usually use your data to calculate your interest rates. Current market rates and economic conditions also influence the rate.

Depending on your preference, you could have fixed or adjustable rate mortgages. Fixed-rate mortgages offer predictability as they don't change over time. You can easily plan your expenditure every month with a reasonably consistent payment.

While you might pay more interest with this mortgage, the amount remains the same throughout the loan's life.

On the other hand, adjustable-rate mortgages start low and then fluctuate depending on prevailing market conditions. Besides, the lower rates come with extended risk levels.

What Drives Mortgage Rates Today?

Different market and personal factors influence mortgage rates today. Market factors driving mortgage rates include the bond market, the economy's health, and the Federal Reserve. On the other hand, personal factors include your credit score, down payment amount, loan type, and home location.

While you might not have control over market factors, you can work on personal aspects to improve your interest rates. Here's a look at the top factors that drive mortgage rates.

Loan Type

There are diverse mortgage loans that come with different interest rates. Government-backed loans like VA, USDA, and FHA typically offer lower interest rates. The eligibility requirements of these various mortgages influence their mortgage rates.

Here's more insight into how these loans influence mortgage interest rates.

  • Conventional loans require borrowers to have higher credit scores and pay more down payments to qualify. As a result, they'll attract lower interest rates as borrowers present less risk to the lenders.

  • FHA loans have less stringent qualification requirements than other government-backed loans. You can qualify for this loan with a 3.5% down payment and a credit score of 580. Consequently, expect to pay slightly higher mortgage rates. However, the rates won't differ significantly from conventional loan rates.

  • Veterans and surviving spouses access homeownership through VA mortgages. The government-backing on these loans translates to lower interest rates.

  • If you opt for Jumbo loans, expect to pay higher interest rates because of lenders' risks. However, market conditions can deliver competitive rates with these loans.

  • If you live in a rural area, you qualify for USDA mortgages with lower interest rates.

It is always helpful to talk to multiple lenders to understand the diverse available options.

Credit Score

Typically, borrowers with lower credit scores receive higher interest rates. With your credit score, lenders can determine whether you're a high or low-risk borrower.

Your credit report's information usually determines your credit score. This score is a reflection of your credit history. Lenders will assess your credit cards, payment history, and existing loans to decide whether or not you'll pay your loan reliably.

A high credit score indicates you're less likely to default on your loan. Lenders are more likely to offer you lower interest rates because they know you'll be reliable in your loan repayments.

Always check your credit report early to identify and correct errors that can lower your credit score.

Down Payment

Your down payment often goes hand in hand with your interest rate. A smaller down payment means a higher interest rate. This is because lenders see a higher risk level when you have less stake in the property.

If you can afford a higher down payment, do so to get a lower interest rate. Otherwise, you might need to pay private mortgage insurance (PMI). PMI ensures that your lender doesn't suffer much loss if you default. Borrowers with PMI risk less to lenders and can qualify for lower interest rates.

Home Location and Occupancy

Mortgage interest rates can differ based on the state you live in. Different lending institutions also offer rates depending on whether you want to buy in a rural or urban area. The home's price might also influence mortgage rates today.

Do you need an idea of your desired home's price range? Consider shopping around to know the rates in the neighborhoods you're eyeing. Alternatively, you could also check out real estate websites for this information.

Lenders will also determine your interest rates based on how you intend to use your home. If the home is your primary residence, expect a lower interest rate. The reasoning is that you'll have more incentive to make payments on your primary residence.

Usually, you might be reluctant to continue with your regular payments if you have financial strains. However, investment properties and second homes expect to have higher rates. Lenders will consequently charge higher rates to reduce their risk exposure.

Loan Terms

Your loan term indicates how long you have to complete the loan. Typically, shorter loan terms attract lower interest rates and overall costs.

Loan-to-Value Ratio

Most lenders will also compare your down payment to the loan to determine your loan-to-value ratio (LTV). If you pay a lower down payment, you'll have a lower LTV. In these instances, your lender assumes you have less incentive to repay the mortgage when you experience financial difficulties.

However, a higher LTV earns you a lower mortgage rate. A higher LTV indicates that you have a low-risk threshold hence the lower rates.

Primary Vs. Second Mortgages

Your mortgage rate also depends on whether or not this is your second mortgage. You probably opted for a second mortgage to access your home equity. However, expect to pay slightly higher rates with these loans.

Lenders know you are less likely to default on your primary mortgage payments. As such, they'll easily offer lower interest rates. Do you need a lower rate on your second mortgage?

Consider opting for a cash-out refinance. Besides, this option also lets you roll the second mortgage into the refinanced primary mortgage.

The Bond Market

Usually, the bond market influences mortgage rates significantly today. Mortgage investors typically buy and sell mortgage-backed securities, which offer a stable investment option. When there is a high demand for these assets, mortgage rates will follow suit. Mortgage rates will decrease when the demand drops.

Investors who are less optimistic about the country's economy turn to mortgage-backed securities and other safer assets. During such periods, expect to enjoy lower mortgage rates.

The Federal Reserve

While they don't set mortgage rates, the Federal Reserve influences rates. Essentially, the Fed assesses the state of the economy to decide whether to increase or decrease interest rates. The Fed also manages short-term rates to keep the money supply steady.

The Fed's rates will be higher when the economy is doing well. In turn, mortgage rates will go high. On the other hand, the Fed will raise its rates when they need to tighten the money supply.

It is important to note that mortgage rates don't directly link to the Fed rates. Mortgage rate changes occur to help lenders keep up with the Federal Reserve. However, interest rates will rise and fall depending on Fed rates' changes.

The Economy's Health

The economy's performance today and its outlook often influence mortgage rates. Typically, the rates will go up when the economy is doing well. In these instances, unemployment rates are usually low while spending is high.

When the economic outlook is not reasonable, mortgage rates today decrease significantly.

The Constant Maturity Treasury Rate

Constant Maturity Treasury (CMT) rates point to a yield that uses the average work of Treasury Securities to adjust for different periods.

Interest rates typically increase when the CMT rate goes up. Specific lenders use CMT rates to determine interest rates for adjustable-rates home mortgages.

The Secured Overnight Finance Rate

Overnight borrowing by banks usually influences the secured overnight financing rate (SOFR). Lenders use this rate to determine the base interest rate on their mortgages.

The popularity of this rate keeps growing as lenders adapt to the phasing out the London Interbank Offer Rate (LIBOR).


Typically, inflation plays a significant role in changes witnessed in mortgage rates. An increase in inflation translates into higher interest rates that need to keep up with the dollar's value.

Mortgage rates will drop when inflation decreases. However, mortgage rates today might remain the same or fluctuate slightly during low inflation periods.

Mortgage word written on a chalkboard

Why Are Interest Rates Currently Where They Are in Marion County, Florida?

This information makes you wonder what's happening with mortgage rates today. Remember that most of the mortgage money comes from investors through capital markets. Investor demand for these products plays a critical role in determining market yields.

The direction of economic growth and inflation also influences the changes that occur. If demand is low, changes will begin to attract investors. Raising interest rates has been an excellent fallback option when capital markets need changes.

Inflation's Impact

Inflation often devalues the dollar, decreasing its purchasing power. Typically, prices increase when inflation increases. Rising inflation technically lowers the returns on fixed interest rate investments.

An outlook that points to increasing inflation usually causes interest rates to go up. Once inflation starts declining, mortgage rates will also fall.

Also, rising inflation reduces the demand for mortgage-backed bonds. Dropping demand will, in turn, lead to higher interest rates on your mortgage. Essentially, rising inflation shrink's people's purchasing power while affecting borrowing costs.

Generally, homebuyers pay more for a mortgage during the high inflation period.

The Fed's Role

The Federal Reserve doesn't necessarily control mortgage rates. However, expect the Fed to raise or lower interest rates while addressing increases and decreases in economic activity.

When the economy needs a growth injection, the Fed lowers rates. Banks, in turn, offer their loans more affordably to help steer economic growth. On the other hand, higher rates keep demand low and minimize the risk of inflationary pressures. Fortunately, investors always get a heads up whenever there's movement in the Fed's rate.

In 2022, the Fed has consistently raised the federal funds' benchmark rate. The higher rates will mean you'll pay more interest, reducing your buying power. While this benefits the economy, borrowers will feel the pinch on their mortgage rates.

How can you Get a Better Rate?

Understanding how to get better mortgage rates today is essential while considering a home loan. But first, how would you define a reasonable mortgage interest rate? A "good" rate might be relatively low compared to the current market rates.

Securing a better rate will offer different benefits, including lowering your monthly payments. Also, a lower rate implies that you'll pay less interest throughout the loan's life.

Regardless of where you're starting from, you can take steps to get better interest rates. Here are some top tips that can help you secure unmatched interest rates.

Improve your Credit Score

Efforts to secure better interest rates often hinge on your credit score. First, you might need to assess your credit reports to unearth any errors that might drag down the score. Next, proceed to work on bettering your credit score.

Building excellent credit makes you eligible for lower mortgage interest rates. Start by paying down some balances. Also, making your mortgage payments on time will help to improve your credit score.

Pay a higher Down Payment

Lenders will consider you a lower-risk borrower if you make a sizeable down payment. The more money you're willing to invest in the property shows that you're more likely to remain faithful with your payments.

Consider saving up for a higher down payment to keep your mortgage rates low. A higher down payment also reduces your chances of paying private mortgage insurance, especially on conventional loans.

Opt for Shorter Loan Terms

Interest rates will generally be lower if you choose a 15-year mortgage over a 30-year mortgage. Although you might have higher monthly payments, you will save more money on interest in the long run. A shorter loan term also ensures that you clear your mortgage sooner.

Consider Buying Prepaid Mortgage Points

Prepay interest when closing to keep your rate down. Many lenders offer this interest as mortgage points. Prepaying interest in this way guarantees a lower mortgage interest rate. However, you'll need to stay in the home long enough to save money.

Decrease your Debt

Work proactively to improve your DTI ratio by lowering your debt. Paying off debt frees up more money you could use for your monthly mortgage payments. Less debt will also help to improve your credit score and earn you lower interest rates.

Activities for Children in Marion County, Florida

Marion County offers top sites for creating cherished family memories. Here are some top activities for children in the area.

  • Visit Silver Springs State Park - Rent a canoe or kayak and ride towards the famous Glass-Bottom Boats. Check out the fish, manatees, and turtles beneath the clear waters. You could also consider taking on the easy hiking trails.

  • Flow down the Rainbow River - Launch out from Rainbow Springs State Park and float through the Rainbow Rivers with your young ones. Refresh in the clear water when you get too hot.

  • Hike Through the Cross Florida Greenway - Enjoy the fresh air as you go through the Cross Florida Greenway trail. Spot wildlife while you take in the gorgeous natural settings. Take a break at the playgrounds and picnic shelters.

  • Enjoy Lake Weir's Beach - Take the whole family to Lake Weir for a relaxing day in the sun. Enjoy tasty seafood as you enjoy this chill environment. Also, you could head to Carney Island, enjoy some watersport activities and playgrounds, and explore the walking trails.

  • Catch a Movie at the Ocala Drive-In Theatre - The Ocala Drive-In Theatre guarantees a nostalgic experience for the whole family. This old-fashioned attraction comes with new technologies and a concession stand.

Now You Know

A combination of diverse factors influences mortgage interest rates today. Everyone's situation is different. Understanding these factors comprehensively can help you shop for the right loan and interest rate.

Overall, saving a fraction of your interest rates will guarantee significant savings throughout the loan's life. Before signing up for your mortgage, prepare, shop around, and compare different available offers.

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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