Florida House-Flipping Interest Rates & Costs

What interest rate should you use for a house flip?

Use the rate quoted for your project, together with the financed amount, points and fees. There is no single hard-money rate that describes every loan. The property, term, borrower experience and renovation funding can change the offer.

Freddie Mac’s PMMS survey provides context for conventional home-purchase mortgage rates. It is not a fix-and-flip loan quote. The Federal Reserve’s H.15 series are market benchmarks, not a lender’s price for your property.

Compare points and fees, not just the rate

One point equals 1% of the loan amount: two points on $200,000 mean $4,000 upfront. Ask whether the points are an origination charge or buy down the rate. Review appraisal, inspection, draw, processing, exit and extension charges as well.

Compare offers for the same funded amount and holding period. Enter loan points once. Combine purchase and resale closing costs with agent fees in the transaction-cost field; use a percentage of your expected resale price.

How interest rates change a six-month flip

For an unchanged $200,000 balance held six months, a 10% annual rate produces $10,000 in simple interest; 12% produces $12,000. That is a $2,000 difference before points and other fees.

Points can reverse the comparison: six months at 10% with three points costs $16,000 in interest and points. At 12% with one point, it costs $14,000. Compare total cost rather than the advertised percentage alone.

What does another 30, 60 or 90 days cost?

At $200,000 and 12%, monthly interest is $2,000. If property taxes, insurance, utilities and other carrying costs add $500 each month, another month costs $2,500; three months cost $7,500 before extension charges or additional repairs.

Allow time for permits, construction, marketing and closing. The delay comparison holds your resale price and other costs unchanged; a price change or extension fee affects the margin separately.

Combine closing costs and agent fees

Add purchase and resale closing costs and your negotiated agent fees together. Divide that dollar total by the expected resale price, then multiply by 100 to enter one transaction-cost percentage. For $340,000 resale and $27,200 combined costs, enter 8%. Loan points remain separate.

The calculation subtracts purchase, repairs, loan interest, points and combined transaction costs. When an address has an available annual property-tax figure, it also prorates that amount over the holding period. Add insurance, utilities and other expenses to your overall purchase budget before deciding what to offer.

Budget the Florida address for insurance, flood exposure and associations

Get an insurance quote for the specific home before deciding your purchase budget. Review flood exposure and ask which coverage applies during vacancy and renovation. A quoted homeowner premium does not automatically include every flood or wind-related expense.

For an association property, obtain the actual dues, current assessments and renovation requirements before making an offer. Confirm roof, mechanical and other planned work with the local permitting office; do not treat the same repair budget as suitable for every Florida home.

Build a Florida resale estimate from the right property evidence

Review the property appraiser’s record for the county holding the parcel. Miami-Dade, Hillsborough and Lee each have their own records; a county list covers more than its best-known city. Keep assessed value separate from the price a renovated home could achieve.

For a Tampa, Fort Myers or Miami-area lead, compare nearby closed sales and current competition. Check an expired listing for newer active or pending activity and verify a foreclosure case’s current stage before estimating the buying and resale timeline.

What to confirm in a financing quote

The calculator uses simple interest on an unchanged balance without amortization. It does not model staged draws, compounding, principal payments or income taxes. Match the budget to the quote and contract for your project.

• Amount funded at closing and the renovation draw schedule.
• Whether interest applies to the full commitment or only disbursed funds.
• Points, other fees, minimum interest and prepayment terms.
• Loan term, maturity date and extension requirements and charges.
• Documentation, cash contribution and reserves needed to close.