Mortgage Rates in Key West, Florida — March 2026
Updated March 2026 | Based on Key West market data and regional lending conditions
Key West is a growing city in Florida with a population of 25,478. The current 30-year fixed mortgage rate in Key West is 6.03%, which is 0.62% below the national average. With a median home price of $825,000 and a 20% down payment of $165,000, homebuyers can expect a monthly principal and interest payment of approximately $3,970.
Current Mortgage Rates in Key West, FL
Below are the current average mortgage rates available in the Key West area as of March 2026. Rates vary by lender, credit score, and loan-to-value ratio. Use our free calculator above to see your personalized estimate.
| Loan Type | Rate | National Avg | Difference |
|---|---|---|---|
| 30-Year Fixed | 6.03% | 6.65% | -0.62% |
| 15-Year Fixed | 5.27% | 5.89% | -0.62% |
| 5/1 ARM | 5.53% | 6.15% | -0.62% |
| FHA | 5.63% | 6.25% | -0.62% |
| VA | 5.43% | 6.05% | -0.62% |
| Jumbo | 6.23% | 6.85% | -0.62% |
Key West Housing Market Overview
The Key West housing market is competitive with prices well above the national median. The median household income in Key West is $55,000, and the cost of living index is 155 (national average = 100). Based on the 28% affordability rule, you would need an income of approximately $197,529 to comfortably afford the median-priced home in Key West, which exceeds the current median household income.
Monthly Payment Breakdown for Key West
Based on the median home price of $825,000 with 20% down ($165,000), here is what you can expect to pay monthly in Key West:
15-Year vs. 30-Year Mortgage in Key West
Choosing a 15-year mortgage in Key West at 5.27% instead of a 30-year at 6.03% would save you $472,860 in total interest over the life of the loan. However, your monthly payment would be $5,313 instead of $3,970 — an increase of $1,343 per month.
Calculate Your Key West Mortgage Payment
Use our free calculator to get a personalized estimate based on your loan amount, interest rate, and term.
Open Free CalculatorFrequently Asked Questions About Mortgages in Key West
What are the current mortgage rates in Key West, FL?
As of March 2026, the average 30-year fixed mortgage rate in Key West, Florida is 6.03%, while the 15-year fixed rate is 5.27%. FHA loans average 5.63% and VA loans 5.43%. These rates are 0.62% below the national average of 6.65%.
How much is a monthly mortgage payment in Key West?
Based on the median home price of $825,000 with 20% down, the estimated monthly mortgage payment in Key West is $3,970 for principal and interest. Including property taxes of $639/month, the total monthly housing cost is approximately $4,609.
What income do I need to buy a home in Key West?
Using the 28% rule, you would need an annual income of approximately $197,529 to afford the median-priced home in Key West at $825,000. The median household income in Key West is $55,000. This means most households would need to either earn above the median or consider homes below $825,000.
Is Key West a good place to buy a home in 2026?
Key West has a higher cost of living than average with a cost of living index of 155 (national average = 100). The property tax rate in Florida is 0.93%, which is near the national average. Key West has a population of 25,478 and offers a balanced lifestyle.
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Last updated: March 2026. Rates are approximate averages based on regional lending data for the Key West, Florida area. Individual rates may vary by lender, credit score, loan amount, and other factors. Use our free calculator for a personalized estimate.