One of the most critical components of purchasing a home in Jacksonville—or anywhere else—is securing a mortgage at a favorable rate.

Mortgage rates can significantly influence your monthly payments, the total cost of your home, and even your decision to buy now or wait. This comprehensive guide will explore mortgage rates in Jacksonville, what influences them, how they compare to national averages, and how to find the best rates for your situation.

Understanding Mortgage Rates

Rates fluctuate daily due to several factors, including the economy, the Federal Reserve’s monetary policy, inflation, and lender policies.

There are different types of mortgages, each with its rate structures:

• Fixed-rate mortgages: The interest rate is fixed for the duration of the loan.
• Adjustable-rate mortgages (ARMs): The rate is fixed for an initial period and then adjusts annually based on a benchmark index.
• FHA loans: The Federal Housing Administration backs these loans, which frequently have reduced down payment requirements.
• VA loans: These loans are typically available to veterans and active-duty military members, feature competitive rates, and require no down payment.

Average Mortgage Rates in Jacksonville, FL (April 2025)

Loan Type	Average Interest Rate	APR (%)	Loan Term	Down Payment Requirement
30-Year Fixed	6.75%	6.89%	30 years	Typically 5%–20%
15-Year Fixed	6.10%	6.28%	15 years	Typically 5%–20%
5/1 Adjustable-Rate (ARM)	6.30%	7.15%	5 years fixed, adjusts yearly	Typically 5%–20%
FHA 30-Year Fixed	6.55%	7.05%	30 years	As low as 3.5%
VA 30-Year Fixed	6.45%	6.78%	30 years	0% (No down payment)

Note: Rates are subject to change and may vary based on credit score, loan size, lender, and other factors.

Jacksonville vs. National Mortgage Rates

Mortgage rates in Jacksonville are generally in line with national averages. However, slight variations may occur depending on regional economic activity, local demand, and lenders’ competitiveness.

Key Comparisons

• Jacksonville’s 30-year fixed-rate mortgage is slightly below the national average by about 0.10% as of April 2025.
• FHA and VA loans remain attractive in Jacksonville due to strong support from local banks and veteran-focused lenders.
• Adjustable-rate mortgages (ARMs) are slightly higher than national rates, possibly due to risk assessments in Florida’s climate zones.

Factors Influencing Mortgage Rates in Jacksonville

1. Credit Score

A higher score typically results in lower mortgage rates. Borrowers in Jacksonville with excellent credit (740+) often receive the most favorable terms.

2. Loan Type and Term

Shorter-term loans, such as 15-year fixed-rate mortgages, usually have lower interest rates than 30-year loans, though the monthly payments are higher.

3. Down Payment

Putting down a larger sum (e.g., 20% or more) can reduce your interest rate and your need for private mortgage insurance (PMI).

4. Location and Property Type

Due to insurance requirements, Jacksonville’s coastal properties or flood-zone locations may also influence rates.

5. Loan Amount

In Jacksonville, conforming loan limits for 2025 are expected to follow national guidelines (around $766,550). Loans above this threshold may be considered “jumbo loans,” which often carry higher interest rates.

6. Economic Trends

Broader economic indicators, including inflation, job reports, and the Federal Reserve’s policies, influence rates in Jacksonville just like elsewhere.

How to Get the Best Mortgage Rate in Jacksonville

1. Improve Your Credit Score

Before applying, reduce high-interest debt, keep credit card balances low, and avoid new credit inquiries.

2. Compare Multiple Lenders

Compare rates from local Jacksonville banks, credit unions, and online lenders.

3. Lock in Rates at the Right Time

Interest rates fluctuate, sometimes daily. If rates are low and you’re ready to buy, consider locking in your rate to protect against market shifts.

4. Increase Your Down Payment

The more you put down, the less risk the lender assumes, often resulting in better rates and no PMI.

5. Consider Mortgage Points

Some lenders allow you to buy down your interest rate by paying mortgage points upfront. This can be beneficial if you plan to stay home long term.

Jacksonville-Specific Considerations

1. Property Taxes

Jacksonville has relatively moderate property tax rates compared to other large Florida cities.

2. Homeowners’ Insurance

Due to its coastal location and hurricane risk, homeowners’ insurance rates in Jacksonville can be higher than in inland cities. This cost affects your total monthly housing payment.

3. Flood Insurance

Homes in certain parts of Jacksonville may require flood insurance, especially those near the St. Johns River or the Atlantic Ocean.

4. Real Estate Market Trends

As of early 2025, Jacksonville remains a seller’s market. Limited inventory is driving up home prices, which may encourage some buyers to act before prices or interest rates rise further.

Best Mortgage Lenders in Jacksonville, FL

Lender Name	Notable Features	Loan Types Offered
VyStar Credit Union	Local credit union with competitive rates	Fixed, ARM, FHA, VA
Navy Federal Credit Union	Great for military and veteran families	VA, Conventional, FHA
Bank of America	Wide range of programs and digital tools	Fixed, ARM, Jumbo, FHA, VA
Movement Mortgage	Fast processing, community-focused	Fixed, ARM, FHA, VA, USDA
Chase Bank	Large national lender with local offices	Fixed, ARM, Jumbo, FHA

Tip: Local credit unions and community banks often provide more personalized service and may be more flexible than national banks.

Should You Refinance in Jacksonville?

Refinancing can be strategic if you own a home in Jacksonville and want to lower your rate, change your loan term, or cash out some equity.

Ideal Conditions for Refinancing:

• The current mortgage rate is at least 1% higher than the market rate
• You plan to stay in the home for several more years
• You want to switch from an ARM to a fixed-rate loan
• You’ve improved your credit score since the original loan

First-Time Homebuyer Programs in Jacksonville

For many aspiring homeowners in Jacksonville, the path to homeownership can feel out of reach due to financial barriers such as high down payments or credit score requirements. Fortunately, several programs are designed to ease that burden and help first-time buyers get into their homes with more confidence and support.

Here are some of the most valuable programs available to first-time buyers in Jacksonville, Florida:

1. Florida HFA Preferred Program

The Florida Housing Finance Corporation (Florida Housing) offers the HFA Preferred Program, ideal for first-time homebuyers across the state, including those in Jacksonville.

Key Benefits:

• Lower monthly mortgage payments due to reduced mortgage insurance premiums
• Up to $10,000 in down payment and the closing cost assistance via a second mortgage (typically deferred and non-amortizing)
• Available to borrowers with a credit score of 640 or higher
• Must complete a homebuyer education course

Eligibility Requirements:

• First-time homebuyer (or not owned a home in the past three years)
• Purchase of a primary residence in Florida
• Income and purchase price limits apply based on the county

How to Apply:

• Apply through participating lenders approved by Florida Housing
• Visit floridahousing.org for a list of lenders and application steps

2. City of Jacksonville Housing and Community Development Division Programs

Jacksonville’s Housing and Community Development Division offers local down payment assistance (DPA) programs to help low-to-moderate-income residents purchase their first homes within city limits. These programs are often funded through federal grants such as the HOME Investment Partnerships Program and the Community Development Block Grant (CDBG) Program.

Key Benefits:

• Grants or forgivable loans up to $15,000 or more for eligible buyers
• Assistance can be used for down payments and/or closing costs
• Sometimes combined with state or federal aid to maximize support
• Homebuyer counseling and education provided at no cost

Eligibility Requirements:

• Must be a first-time buyer (not owned a home in the past 3 years)
• Household income must fall below 80% of the area median income (AMI)
• Purchase must be of a home within Jacksonville city limits
• Must attend and complete an approved homebuyer education course

How to Apply:

• Contact the Jacksonville Housing and Community Development Division
• Visit COJ.net and search for “Homebuyer Assistance” or call the city’s Housing Services directly for current availability

3. FHA Loans (Federal Housing Administration Loans)

The Federal Housing Administration ensures these loans, making them less risky for lenders and more accessible for first-time buyers.

Key Benefits:

• Down payments as low as 3.5%
• More lenient credit requirements (minimum credit score typically 580)
• Competitive fixed interest rates
• Higher debt-to-income ratio allowances

Eligibility and their requirements:

• Occupy the home as your primary residence.
• Steady employment and reliable income
• Must meet FHA loan limits (for Duval County in 2025, typically $498,257 for single-family homes, though this can change annually)
• It requires an upfront mortgage insurance premium (UFMIP) and monthly mortgage insurance payments

How to Apply:

• Work with any FHA-approved lender
• Submit income verification, credit report, and complete loan application

4. VA Loans (U.S. Department of Veterans Affairs Loans)

They are available exclusively to eligible active-duty service members, veterans, and specific National Guard and Reserve members.

Key Benefits:

• No down payment required
• No private mortgage insurance (PMI)
• Competitive fixed and adjustable interest rates
• Lower closing costs than most traditional loans
• Limited credit or income hurdles

Eligibility Requirements:

• Must meet service requirements (90 days of wartime service, 181 days of peacetime service, or 6 years in the Reserves or National Guard)
• Must obtain a Certificate of Eligibility (COE)
• Must use the loan for a primary residence

How to Apply:

• Apply through any VA-approved lender
• Obtain COE through the VA or lender assistance
• Work with a real estate agent familiar with VA loan purchase guidelines

Bonus Tip: Combine Programs Where Possible

Many Jacksonville first-time buyers find that stacking these resources, such as using the Florida HFA Preferred loan with a local Jacksonville grant, maximizes their affordability and reduces upfront costs. It’s wise to consult with a local housing counselor or a mortgage broker familiar with the area to explore all eligible options and benefits based on your unique circumstances.

Forecast: Where Are Mortgage Rates Headed?

Experts suggest that rates in 2025 may remain volatile due to persistent inflation and shifting Federal Reserve policies. Jacksonville’s housing market is expected to stay strong, which may keep mortgage demand high even if rates rise slightly.

If you plan to buy in Jacksonville this year, consider your long-term goals, local market conditions, and how much house you can realistically afford at today’s rates.

Final Thoughts

Jacksonville, Florida, offers many opportunities for homeownership, but understanding the intricacies of mortgage rates is essential for making wise financial decisions. Whether you’re a first-time homebuyer, a seasoned investor, or someone considering a refinance, the key to success lies in preparation, research, and knowing your options.