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Current Mortgage Rates Today in Pasco County, Florida

Mortgage rates constantly fluctuate, making it difficult for aspiring homebuyers to find good deals. Several factors come into play when determining mortgage rates today. Understanding how banks and mortgage companies calculate interest rates can go a long way to smoothen your homeownership journey.

This simplified post explains the factors that drive mortgage rates today and how to get a better deal to buy your dream home.

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

Factors that Drive Mortgage Rates Today

The aspects that drive mortgage rates today range from personal factors to market dynamics. These include your credit score, down payment, loan type, the economy, and housing prices, among many others. Here’s a breakdown of what you need to know about mortgage interest rates.

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Credit Score

Your credit score shows lenders your creditworthiness and ability to meet your financial obligations. It not only determines your loan eligibility but also defines the interest rates associated with the mortgage.

If you have a high credit score of 620 points and above, you should expect lower interest rates on your loan. Borrowers with lower credit ratings pay higher interest rates to cover the associated risks.

The good news is that credit scores are not permanent. You can improve your credit rating by paying your bills promptly and reducing your debts to increase your chances of getting a better deal.

Down Payment

A down payment is an amount you pay upfront when buying a home to show your commitment to your investment. It is a percentage of the home’s value, usually ranging from 3.5% to 20% of the selling price.

Even though some loans do not require a down payment, placing a substantial amount down can significantly lower your interest rates. After all, it reduces the risk to the lender, and they will be willing to offer lower rates.

Without a down payment, the lender will require you to pay Private Mortgage Insurance monthly premiums to cover the risk. Ensure your down payment is 20% or more to enjoy lower mortgage rates.

Type of Loan

Each loan has its terms and requirements and comes with different interest rates. Traditional mortgages attract higher interest rates, depending on the lending institution.

In contrast, VA, USDA, and FHA loans have varying interest rates since most are government-backed. Ideally, it would help if you compared the expected rates of each loan by consulting various lenders to find a good deal.

The most common home loans include:

  • Conventional mortgages
  • VA loans
  • FHA loans
  • USDA loans

Loan Duration

The loan duration is a significant factor in determining interest rates. Long-term loans have higher interest rates considering the numerous risks, and it costs more to lend money for an extended period. In contrast, short-term loans have lower interest rates but higher monthly periods.

You can choose between 15-year and 30-year mortgages depending on your financial capabilities. However, you should know that 15-year mortgages have lower interest rates than 30-year mortgages.

Loan Amount

Depending on the lender and loan terms, you can borrow as much as you want. However, the borrowed amount determines how much you’ll pay as interest.

Lenders consider large loan amounts risky, so they usually charge higher rates to cover the risk. If you want more money with reduced rates, consider placing a large down payment.

Loan-To-Value Ratio

Before determining your interest rate, the lender must assess the associate risks by comparing your down payment against the home value and the loan amount to define your LTV ratio.

A high LTV ratio attracts higher mortgage rates as it means you are a risky borrower, while a lower LTV attracts lower interest rates. The good news is that you can improve your LTV ratio and receive lower rates by placing a substantial amount as a down payment.

Interest Rate Type

Typically, most home loans have two interest rate types. You can choose between a fixed-rate and an adjustable-rate mortgage.

The interest rate of a fixed-rate mortgage remains constant, while that of an adjustable-rate mortgage changes multiple times throughout the life of the loan.

Each option has its upsides and downsides, but adjustable-rate mortgages can rise significantly depending on the market rates.

Housing Prices & Location

Housing prices and mortgage rates are almost inseparable. If the home value is low, you might pay higher interest rates and vice versa. Borrowing a lower amount for a shorter period can help reduce the mortgage rates.

The location of the home might similarly determine current mortgage rates. After all, different states and counties have varying interest rates. Moreover, urban homes usually have higher rates than rural homes.

The current rates in Pasco County, Florida, are 4.331% for a 15-year mortgage and 5.121% for a 30-year home loan.


Lenders usually peg mortgage rates based on the property type and occupancy details. You may have to pay higher mortgage rates if you plan to buy a vacation home or an investment property. After all, a vacation home is not your primary residence, and you may not be obliged to live there.

Loans on primary have lower interest rates. After all, you’ll be living in that house, and it’s easier for the lender to reach you. Moreover, many lenders prefer to deal with first-time homebuyers and offer lower rates to make their homeownership journey easier.

The Economy & Unemployment Rates

The economy dramatically impacts mortgage rates, and lenders usually use this factor to determine how much interest you’ll pay on your loan. If the state of the economy is good, you’ll pay higher interest rates. After all, a healthy economy means more money is in circulation, and people have higher spending power.

In contrast, hard economic times translate to lower interest rates. Lenders assume borrowers do not have money to spend during tough times, making it an excellent time to take out a mortgage.

Unemployment rates also determine mortgage rates. High unemployment rates translate to lower purchasing power, forcing lenders to offer lower interest rates. If so many people are jobless, the interest rates will fall, and vice versa.


Inflation does not impact mortgage rates directly. However, it increases the prices of everything. As a result, investors stop buying mortgage-backed bonds, opting to spend their money elsewhere. When this happens, you should expect higher interest rates.

Fed Hikes

The Fed reserve sets economic policies to help control inflation and maintain the economy’s health. Sometimes, these policies might involve hiking fund rates, making it pricier for banks to borrow funds from the federal reserve.

Banks, in turn, pass on these increased rates to borrowers, meaning you may have to pay higher mortgage rates.

A person hand change wood cube block with mortgage rates percent to up and down arrow symbol

How to Get Better Mortgage Rates?

Buying a home can be more affordable if you get better interest rates. A lower rate can save you thousands of dollars throughout the loan period.

However, mortgage rates today are ever-changing, making it difficult for aspiring buyers to find better deals. Fortunately, here are a few tips that you can use to get better mortgage rates:

Place a Large Down Payment

The quickest and most practical way to get better rates on your mortgage is to put more money down. A small down payment presumably makes you a risky borrower.

Even though you may eventually pay off your loan, the lender has to cover the risk by charging higher interest rates. Sometimes, you may have to pay higher private mortgage insurance premiums to protect the lender if you default on your loan.

In contrast, a larger down payment reduces the risk to the lender and consequently attracts lower mortgage rates.

After all, you’ll appear less risky to the lender if you invest more money in the property. Not only that. The lender might not require Private Mortgage Insurance if you place a substantial down payment.

Ensure the down payment is at least 20% of the property value to enjoy lower interest rates on your mortgage.

Improve Your Credit Score

Your FICO credit score matters when applying for a mortgage as it determines if you qualify for the loan in the first place. Your current score also defines how much you will pay as interest on your mortgage.

A high credit score demonstrates your creditworthiness, consequently attracting a lower interest rate. It shows your trustworthiness and ability to pay your bills promptly. In contrast, a low credit score shows the lender you are a risky borrower, meaning you’ll have to pay higher rates to cover the risk.

Fortunately, you can improve your credit score using various means. First, check your credit report with major credit bureaus to identify areas you can improve and spot any errors or discrepancies. Ensure you dispute any inaccuracies that could hinder your credit rating with the relevant credit service.

Always pay your bills promptly and avoid taking out loans unnecessarily. You may include your utility bills in your report to improve your FICO rating and enjoy lower rates on your mortgage.

Pay Your Debts

Lenders might consider you a risky borrower if you have multiple loans. Servicing several loans is financially precarious, particularly if you have other monthly obligations to pay.

The chances of defaulting on your mortgage are high if your income reduces or you lose your job. For these reasons, lenders might charge higher rates to cover the risk.

Paying off some of your debts and reducing spending can help you get better rates. Cutting your expenses lowers your Debt-to-Income ratio and improves your credit score, allowing lenders to offer better terms and lower interest rates.

Monitor Mortgage Rates

Mortgage rates today are ever-changing, making it difficult to find a good deal. Fortunately, you can increase your chances of getting better interest rates by monitoring the market. You don’t have to be a financial expert to know when the rates are low. A simple online search can provide the latest rates and projected changes.

Even though short-term changes are usually small, you can lock your interest rate when it falls through a reputable lender. Locking your mortgage rate can help reduce financial uncertainty, but you must be a strong (qualified) borrower to take advantage of this option.

Consult Different Lenders

If you want a good deal, ensure you shop around to find favorable loan options. Consult at least three different lenders when searching for lower interest rates. After all, lenders are in business and can do whatever it takes to get a competitive edge and find customers.

You will receive a standardized document from each lender showing interest rates, closing costs, and other details concerning the loan. You can then compare the loan estimates to determine how much the mortgage will cost.

Get a Short-Term Loan

Mortgages are available in 15-year and 20-year terms with fixed and adjustable interest rates. The loan duration determines how much interest you’ll pay on your mortgage.

Even though a short-term loan has higher monthly payments, it attracts lower interest rates. After all, it costs lenders a lot of resources to lend money for a more extended period.

Consider taking out a 15-year fixed-rate mortgage to enjoy lower interest rates. If you cannot afford the high payments associated with short-term loans, apply for an adjustable-rate mortgage since the initial rate is usually lower for the first few years.

Increase Your Income Streams

Your income determines your eligibility for a mortgage and the interest rates tied to the loan. If your income is considerably higher than your debts, you’ll have minimal issues managing your finances during difficult times, meaning less risk to the lender.

Lenders will be willing to offer you lower interest rates if you demonstrate that you will keep paying your mortgage even in tough economic times.

Start by calculating your debt-to-income ratio to know your current financial status. You can improve your DTI by reducing your debts and cutting your spending. Instead of relying on one source, consider starting a side-hustle to increase your income streams.

Pay Discount Points

You can get lower interest rates by purchasing discount points. These points are upfront fees paid to a lender for lower mortgage rates.

Even though you will pay more upfront when purchasing discount points, you will enjoy lower interest rates with subsequent monthly payments on your mortgage. This option is ideal for long-term home loans.

Top 5 Great Activities for Kids in Pasco County, Florida

There are lots of children and family-friendly activities that whole family can enjoy in Pasco County, Florida, as discussed below.

Visit TreeHoppers for Aerial Adventures

The TreeHoppers Aerial Adventure Park is the ultimate destination for high-energy kids who want to fly and climb objects. The park features various aerial obstacles with different difficulty levels to fit your child’s abilities.

Your kids can safely slide down using any of the 20 different zip lines or climb close to 100 various elements for the ultimate fun and amusement. Kids can likewise transverse the old Florida forest for more adventure.

The park also hosts school groups, birthday parties, scout troops, and family get-togethers at competitive rates with free entry for paid members.

Feed Animals at the Giraffe Ranch in Dade City

If you want your kids to learn more about wildlife and animal conservation, do not hesitate to take them to the Giraffe Ranch in Dade City. The ranch is home to various animals, including giraffes, camels, zebras, ostriches, hippos, rhinos, llamas, and otters.

The primary attraction at the ranch is feeding giraffes, but your kids can enjoy riding camels and petting other animals. The Giraffe ranch also has a drive-through safari that promises lots of fun and adventure as you get up close with zebras.

Picnic at Jay B. Starkey Wilderness Park

The Jay B. Starkey Wilderness Park is excellent for various family-friendly activities, from biking to hiking. Even though the park can be busy sometimes, you can enjoy a quiet time with your kids on the nature trails and picnic areas. The park also has plenty of space for camping, playing, and bird-watching.

This recreational park has several small rivers and streams ideal for fishing, boating, canoeing, and paddling. You can also go hunting but only within selected areas. The management allows families to come with pets, meaning you can bring your dog along.

Enjoy Water Sports and Activities at SunWest Park

Since kids love playing with water, visiting SunWest Park will be worth every minute. The area has various fun water activities for kids and adults alike. It is ideal for water skiing, wakeboarding, swimming, and kayaking.

The water course and slides are a must-visit for a memorable water-sport experience. The park also has a man-made beach that is surprisingly neat and quiet and hosts beach volleyball tournaments. You can bring your food or buy delicious sandwiches and drinks from the food truck nearby.

Escape to the Key Vista Nature Park

If you want to escape the hustle and bustle of the city with your kids, the Key Vista Nature Park is your ultimate destination. The park has lots of nature trails to explore, and the best part is that it is close to the beach, which is easily accessible through a boardwalk.

The main attraction of the Key Vista Nature Park is the observation tower that allows you to enjoy a breathtaking view of Pasco County or watch the sunset. You can also enjoy other activities such as hiking, kayaking, and paddling. Besides, it has a fishing pier ideal for anglers.

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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