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Tallahassee Mortgage Rates: Learning the Process

Tallahassee is a beautiful place to live. It's a great place to raise a family, and there are plenty of activities for all ages. This post explores how to get a mortgage in Tallahassee and ways to find loans with the best interest rate.

Why Get a Mortgage in Tallahassee, Florida?

Tallahassee, Florida offers many things that make it a wonderful place to settle down, raise a family, enjoy life, and get jobs. Here are some of the reasons why Tallahassee, Florida, is a great place to buy a house:

Local attractions

There are many local attractions in Tallahassee that both adults and children can enjoy. The Florida Museum of Natural History offers exhibits on Florida's culture, history, geology, and biology.

It also has an extensive collection of taxidermied animals worldwide and an aquarium with sharks, stingrays, and other marine life.


Tallahassee has several large employers, such as the University of North Florida, Florida State University, and the County School Districts, all located within city limits.

Many companies have offices in this area, including government agencies like NASA, which operates its research facility nearby called Kennedy Space Center Visitor Complex.

There is no state income tax in Florida!

You read that right—here in Tallahassee, you get to keep your money instead of fork it over to the government.

If you're moving from another state, this might be a big adjustment for you and your family—but once you get used to it, you'll enjoy watching your bank account grow more than ever before!


Tallahassee is home to two of Florida's top 10 public high schools, according to U.S. News & World Report. Leon High School and Godby High School both made the list of best public high schools in America for 2019, with Leon ranking second and Godby ranking ninth on the list of top 1,000 public high schools in America (source). These two high schools have excellent academics, but they also have great sports programs!


Finally, if you're a sports fan, Tallahassee is where you want to be! It's home to Florida State University's Seminoles football team, which has won two national championships since 1990 (the last time they won was 2013).

There are also plenty of other sports teams in town—including professional baseball (Tallahassee Thunder), hockey (Tallahassee Titans), and minor league basketball (Tallahassee Tornadoes).

How to Get a Mortgage in Tallahassee, Florida

The Tallahassee loan process is straightforward. We are experts and would love to answer all of your questions about getting a home loan in Tallahassee. Contact us today!

Step 1 - Get your finances in order

The first step of the Tallahassee loan process is to get your financial situation. You'll need to verify your employment history and income and your current debts, assets, credit score, etc.

Lenders will use this information to determine how much money they're willing to lend you and what terms they'll offer on a mortgage loan.

Step 2 - Choose a mortgage type

Next, you'll need to decide which type of mortgage best suits your needs. Many different mortgages are available today, including fixed-rate and adjustable-rate mortgages (ARMs). For example, if you're planning on holding onto your house for several years or more, it may be wise to go with a fixed-rate mortgage because it provides stability when interest rates rise or fall over time.

Adjustable-rate mortgages may have lower interest rates during the initial period. Still, they could see your monthly payments rise over time depending on market conditions and other factors like changing interest rates or amortization periods (how long you take to pay off your loan).

Step 3 - Choose mortgage term

The best way to choose a type of loan is to figure out what will work best with your budget over the long term. Typically, a 30-year fixed-rate mortgage is the most popular choice because it offers relatively low payments over 30 years.

However, if you plan to stay in your home for a long time and want to save money on interest charges, consider a 15-year fixed-rate mortgage instead. You'll pay more per month but less over 15 years than you would with a longer-term loan.

Step 4 - Find the right Tallahassee lender

There are several ways to find a lender who can help you get approved for a mortgage loan in Tallahassee. You can browse their websites, talk to your real estate agent, or ask friends and family who have recently purchased homes in the area.

When you talk with them on the phone, ask them if they work with first-time homebuyers or if they only work with repeat clients. If they only work with repeat clients, don't waste your time applying there. They won't want to deal with someone who doesn't have any experience buying homes in that area before.

Step 5 - Complete a mortgage application

Next, you'll need to fill out an application for your mortgage broker. This will help them understand how much money you can afford to borrow and how much house you can buy.

The application process may vary slightly between lenders, but most require similar information, including your employment status, credit history, income, and assets. You must provide accurate information on this application because any inaccuracies could affect the approval of your loan or other terms of the agreement.

Step 6 - Get pre-qualified and find out how much you can afford

This step will help you determine how much funding you will likely be able to get from a lender. Contact a Tallahassee mortgage broker who will work with you to understand your financial situation to get pre-qualified.

The loan officer will be able to tell you how much of a loan you can qualify for and what type of interest rate the lender may offer based on the information provided. You'll also find out what documents you'll need for the mortgage process so that everything can go smoothly when it comes time to apply for an actual loan (you won't want any surprises).

Step 7 - Go under contract on a home to purchase

Once you have found the home you would like to purchase and negotiated the price, you will sign a contract. You will be asked to give a money deposit, typically 1% of the purchase price.

You will also be asked for a list of items included in the sale, such as appliances or window treatments. After signing the contract, it will go to your lender for approval. Within 24-48 hours, you should receive approval from the lender and be able to move forward with the transaction.

Step 8 - Complete due diligence, inspection, appraisal, etc. before closing day

Your lender will order an appraisal of the property when you are under contract. Once the appraisal is complete, your lender will order a title report for review by their attorney. Many lenders will also require a termite inspection before closing day.

In addition, most buyers choose to have their inspection performed by a licensed home inspector (recommended). If there are no issues uncovered during inspections or the title search, then all that remains is for both parties to sign all documents and for the buyer's funds to be wired into escrow so you can get the house.

Mortgage Rates in Tallahassee, Florida

The Tallahassee mortgage rate that you'll pay on your mortgage depends on several factors, including your credit score, debt-to-income ratio, and whether or not you've taken out other loans recently.

As a home buyer or homeowner, it's essential to understand what goes into your loan pricing. We have outlined some of the critical factors that affect mortgage rates below.

Economic Factors

The state of the economy is one of the most influential factors for mortgage rates. A healthy economy with low unemployment tends to lead to higher demand for housing, pushing mortgage rates higher.

In an environment of rising interest rates and a strengthening economy, long-term fixed mortgage rates will generally increase.

Fed and Interest Rate Actions

The Fed takes action to influence interest rates by buying and selling securities in the open market. When they purchase securities from banks, this action injects money into the banking system, giving banks the ability to lend more money at lower interest rates.

The federal funds rate is an important benchmark for short-term interest rates; its actions directly affect short-term interest rates such as credit card debt and adjustable-rate mortgages (ARMs). The Fed has recently signaled that it intends to raise short-term interest rates to prevent inflation from spiking too high as the economy improves.

Bond Market

The price of bonds can affect mortgage rates because mortgage-backed securities (MBS) are bought and sold just like any other financial instrument in the bond market.

Higher demand for MBS means higher prices (and lower yields), translating into lower interest rates for borrowers.

Type of Loan

There are two types of loans: fixed-rate and variable-rate (sometimes called "adjustable-rate"). With a fixed-rate loan, the interest rate stays constant for the loan period. In contrast, the interest rate may change with a variable-rate loan as market conditions warrant.

Buyer's Credit Score

Lenders use credit scores to indicate how likely they will repay them. A higher credit score indicates a lower risk of default, meaning that it could merit better terms from lenders—including a lower interest.

USA downtown skyline in Tallahassee Florida

Easy Steps to Get The Best Mortgage Rates in Tallahassee, Florida

Use these tips to get the best rate on your mortgage:

  • Get a free credit report and correct any errors. Your credit score is one of the most critical factors determining your mortgage interest rate.

  • Research lenders, find out what rates they offer, and negotiate for a better rate.

  • Figure out how much home you can afford. Before applying for a loan, determine how much home you can afford by calculating how much of your monthly income would go toward principal and interest payments.

  • Use a mortgage calculator to help you determine your monthly mortgage payment.

What is the Tallahassee, Florida mortgage interest rate right now in 2022?

Mortgage rates are constantly changing—and since the Federal Reserve adjusts them, their direction is mainly dependent upon economic conditions. It's therefore essential to check them often, as they can change daily.

The average Tallahassee mortgage interest rate for a 30-year fixed loan is 5.4% for fixed-rate mortgages. It is 4.60% of FHA loans of the same term and 4.60 for VA loans. 30-year fixed-rate Jumbo loans in Tallahassee currently have a rate of 5.38%.

Who Is Offering 2.5 Mortgage Rates In Tallahassee, Florida?

If you want to secure the best mortgage rate possible, it's good to do some research. The first place to check is with local mortgage lenders. Among the list of options that you'll find in Tallahassee are lenders that offer rates as low as 2.5% based on your credit score and type of loan.

With this type of interest rate, you'll have to make sure that you put down at least 20% of the loan amount when you apply for your loan. If not, you risk incurring a prepayment penalty, which is a fee that can be paid upfront if you decide to pay off your principal before your loan matures.

Are Interest Rates Going Down In Tallahassee?

We're not sure whether interest rates will go up, down, or sideways. However, now may be a great time to lock in a rate.

Many experts believe that rates will stabilize and even potentially drop.

Should I Lock My Tallahassee Mortgage Rates Today?

If you're wondering whether you should lock your Tallahassee mortgage rate today, the answer is simple.

As of April 2022, mortgage interest rates have fallen to significant lows. With such low rates in Tallahassee capital city, it's tempting to take a chance not to lock a rate and hope that they will go even lower before closing on your home loan.

But while rates may remain at their current levels or fall slightly in the coming weeks or months, experts widely agree that they can only go up from here.

The average lender is forecasting an increase of just over half a percentage point by year-end and another 0.5% by mid-2022.

In other words, if you lock your rate today for 30 days, there's about a 50% chance that rates will be higher when it comes time to extend the lock for longer than 30 days (and nearly certain that they'll be higher next year). That said, rates could also drop further—nobody knows for sure.

If you choose not to lock your mortgage rate today, beware: It could change between now and when you close your loan!

What if Tallahassee Mortgage Rates Drop After I Lock?

If rates drop after you lock, don't worry. You can usually re-lock at a lower rate for a refundable "re-lock fee." With some lenders, you can even re-lock unlimited times before closing.

Alternatively, you may float the rate (stay with your existing lock). That's fine too, but it is riskier because it only takes one small rate hike to wipe out several weeks of savings. If this scares you, go ahead and re-lock — or wait until you close and immediately refinance into a lower rate if rates have dropped.

If you decide to float the rate, be prepared to jump on any opportunity to lock at a lower rate or be ready to lock quickly if rates start rising again.

Mortgage Pre-approval

Before looking at homes, you should get pre-approved to ensure you do not waste time or fall in love with a house you cannot afford.

Getting pre-approved helps identify any problems you may have with your credit so you can address them before finding your dream house.

Factors that Lenders Use To Determine Who Qualifies For Financing in Tallahassee, Florida

Several factors can affect your mortgage rate. Here are some of the main ones:

Lenders look at your credit score

Your score is based on things like payment history. It factors whether you've defaulted on any loans or have filed for bankruptcy. It also examines the number of open accounts and whether you've recently applied for any new credit lines.

The better your score is (a higher number), the less risk you'll be considered. A good score is 700 or higher.

Tallahassee lenders also want to know how much you owe in debt compared with how much your income is

This is called your debt-to-income ratio (DTI). It's a simple calculation that determines how much your income goes towards paying debts. The lower the ratio, the better.

Lenders use DTIs to assess the risk of lending you money for a mortgage and other loans. You can figure out what yours is by adding all your current debts (like car loans and credit card balances) and dividing it by your gross monthly income (the amount before taxes are taken out).

Most lenders require applicants to make a down payment of 20% payment

Very few lenders require less than 10 percent, and most are unwilling to offer mortgages with no money down. The more money you put down, the better your chances that a lender will approve your loan application.

A lender will also want to ensure you can afford your monthly mortgage payments. They will look at your ability to pay this besides your recurring expenses and bills every month.

That means lenders look at your monthly income from all sources. They will scrutinize your salaries, wages, and salaries from self-employment. Even your bonuses, retirement plan distributions, and interest earned on investments or savings accounts will play a part in your mortgage approval process.


There are so many reasons to want to settle down in Tallahassee, Florida. Follow this guide to understand the mortgage process and find better rates.

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