Planning to buy a house?
The most important thing to focus on is the interest rate. When you take out a mortgage, your credit score determines how high or low of an interest rate you will get. The good news is that there are a couple of factors you can change to get a desirable deal:
Improve Your Credit Score
Paying your bills on time is the best way to take your credit score from Poor to Good. Ensure that your debt is less than 28% and overall expenses are less than 34%. The higher your credit score, the more the lender is confident that you will make the monthly payments on time.
Down Payment
For an FHA loan, you need a 3% down payment to get approved for the loan. For a conventional loan, real estate agents recommend saving at least 20% of the sale price for the down payment. These savings will help you lower the loan amount you have to borrow and decrease your monthly payments.
Now that you know the most important basics of getting approved for a loan, let’s take a look at the current stats about mortgage rates and loan amounts:
Current Mortgage Interest Rates (As of March 21, 2023)
| Product | Interest Rate | APR |
| 10-Year Fixed-Rate | 5.494% | 5.748% |
| 15-Year Fixed-Rate | 5.832% | 6.057% |
| 20-Year Fixed-Rate | 6.174% | 6.348% |
| 30-Year Fixed-Rate | 6.661% | 6.741% |
| 3-Year ARM | 6.125% | 7.204% |
| 5-Year ARM | 5.862% | 6.903% |
| 7-Year ARM | 5.961% | 6.817% |
| VA 30-Year Fixed-Rate | 5.679% | 6.832% |
| FHA 30-Year Fixed-Rate | 5.903% | 6.075% |
Media and Mean Home Sale Prices
| Year | Median Sales Prices | Mean Sale Prices |
| 2022 | $428,700 | $507,800 |
| 2020 | $329,000 | $383,000 |
| 2015 | $289,200 | $348,000 |
| 2010 | $222,900 | $275,300 |
| 2005 | $232,500 | $288,500 |
| 2000 | $165,300 | $202,900 |
| 1995 | $130,000 | $153,500 |
| 1990 | $123,900 | $149,500 |
| 1985 | $82,800 | $98,500 |
| 1980 | $63,700 | $73,600 |
Home Value by US States
| US State | Home Value (2022) |
| Alaska | $337,373 |
| Alabama | $204,965 |
| Arkansas | $177,710 |
| Arizona | $458,907 |
| California | $816,804 |
| Connecticut | $383,222 |
| Colorado | $604,911 |
| District of Columbia | $826,124 |
| Delaware | $355,181 |
| Florida | $415,762 |
| Hawaii | $1,038,544 |
| Georgia | $318,273 |
| Illinois | $269,575 |
| Idaho | $476,198 |
| Iowa | $192,568 |
| Indiana | $221,437 |
| Kentucky | $197,644 |
| Kansas | $206,176 |
| Louisiana | $214,522 |
| Maryland | $415,797 |
| Maine | $360,836 |
| Massachusetts | $611,819 |
| Minnesota | $340,122 |
| Michigan | $234,386 |
| Mississippi | $164,132 |
| Montana | $449,723 |
| Missouri | $231,062 |
| Nevada | $484,530 |
| Nebraska | $239,814 |
| New Hampshire | $450,827 |
| New Mexico | $296,395 |
| New Jersey | $480,275 |
| New York | $375,719 |
| North Dakota | $282,461 |
| North Carolina | $322,055 |
| Ohio | $213,360 |
| Oregon | $534,956 |
| Oklahoma | $181,574 |
| Pennsylvania | $267,549 |
| South Dakota | $292,488 |
| South Carolina | $293,445 |
| Rhode Island | $443,482 |
| Texas | $314,718 |
| Tennessee | $297,943 |
| Utah | $588,862 |
| Virginia | $379,206 |
| Vermont | $358,862 |
| Washington | $640,494 |
| Wisconsin | $266,750 |
| West Virginia | $137,286 |
| Wyoming | $320,939 |
2023 Conforming Loan Limits
| Property Type | Low-Cost Area | High-Cost Area |
| Single-Family | $726,200 | $1,089,300 |
| Two-Story | $929,850 | $1,394,775 |
| Three-Story | $1,123,900 | $1,685,850 |
| Four-Story | $1,396,800 | $2,095,200 |
2023 FHA Loan Limits
| Property type | Low-Cost Area | High-Cost Area | U.S. Virgin Islands, Alaska, Guam, and Hawaii, |
| Single-Family | $472,200 | $1,089,300 | $1,633,950 |
| Two-Story | $604,400 | $1,394,775 | $2,092,150 |
| Three-Story | $730,525 | $1,685,850 | $2,528,775 |
| Four-Story | $907,900 | $2,095,200 | $3,142,800 |
FHA Loan vs. Conventional Loans Requirements
| FHA Loan | Conventional Loan | |
| Owner Occupied? | Yes | Yes |
| Minimum Down Payment | 3.5% | 3% |
| Monthly Mortgage Insurance | Cannot be waived | Can be waived after building 20% equity |
| Mortgage Insurance (Upfront) | 1.75% of the loan amount | No |
| Minimum Credit Score | 580+ | 620+ |
Now that you know how much you can borrow for a home loan, how high of a credit score you need, and the current mortgage interest rate, you can start planning. First, save at least 20% of the down payment to lower the loan amount. Next, work on improving your credit score to lower the interest rate. This way, you will be able to get ideal loan terms.
To buy Orlando real estate in your desired area, visit the Megan Dowdy Realty website. Talk to an Orlando realtor to schedule house tours. For more information, call 407-509-9279.
