How Can Buying a Property Be Different In Florida Than Other States?

• Florida is both an Attorney and Agency state. Licensed Title agents and attorneys both can conduct closings and be escrow agents in Florida.  
• Florida is a "one-stop shopping" state for your real estate transaction. A Florida title insurance agency can handle all aspects of your escrow, title insurance, and closing. You do not need to hire different companies to handle escrow and title insurance, unless you choose to hire an attorney to assist. 
• All the services are included in one title quote. - no junk fees and no surprises. 
• Florida is what is known as a "filed" state. Title insurance rates are regulated and filed annually with the state. A title company cannot charge more than the promulgated rate. To check current  legal rates filed with the State of Florida, you can access the following link: 

Per Thousand 

From $0 to $100,000 of liability written $5.75 

From $100,000 to $1 million, add  $5.00  

Over $1 million to and up to $5 million, add  $2.50

Over $5 million and up to $10 million, add $2.25  

Over $10 million, add  $2.00 

(The information presented here is generalized. Your specific mortgage situation may differ. Please  consult your tax advisor or mortgage professional for more information.) 

You can usually qualify for a mortgage loan of two to two and one-half times your household's income. For example, if your family has an income of $40,000 per year, you can usually qualify for a mortgage of  $80,000 to $100,000.  Some lenders use other factors to determine the size of a mortgage you are eligible for. In general, lenders prefer that your housing expenses (mortgage, tax payments, insurance, and special assessments) do not exceed 25% of your gross monthly income. Other financial obligations (monthly payments extending more than 10 months) should not exceed more than 36% of your gross monthly income.  Lenders need to research your credit history to see how well you have repaid loans in the past. Also, the  lender will inquire about your employment history

Fixed Rate - With a fixed rate mortgage, your monthly payment will always be the same for the life of the loan. The benefit is that you always know what your principal and interest costs are.  

Adjustable Rate Mortgage- Adjustable-rate mortgages, or ARMs, differ from fixed-rate mortgages in that the interest rate and monthly payment move up and down as market interest rates fluctuate.  Most have an initial fixed-rate period during which the borrower's rate doesn't change, followed by a much more extended period during which the rate changes at preset intervals. The interest rate on your loan is set to reflect changes in the index interest rate. As the index interest rate changes, your payment will be adjusted annually to reflect those changes.  

Both types of loans have their pros and cons. For example, a fixed-rate mortgage is appealing because you always know what your payment will be. On the other hand, when interest rates are high, choosing the adjustable rate mortgage is favored because it is probable that the interest rate will drop in the future,  resulting in smaller monthly payments. However, with an adjustable-rate mortgage, you run the risk of ending up with a higher payment should the interest rate soar during the life of the loan.  

Adjustable rate mortgages can be advantageous because they generally offer a lower initial interest rate than a fixed rate loan. Still, an increase in the interest rate will result in a higher monthly payment, unlike a fixed-rate loan.

There are several types of adjustable-rate and fixed-rate mortgage loans. Here are some of the more  common loans:

• 30-Year Fixed Rate Mortgage This is a conventional mortgage that provides for a fixed interest rate and level payments for the  30-year life of the loan.  
• 15-Year Fixed Rate Mortgage The 15-year loan is a conventional mortgage in which the borrower will pay fixed monthly payments for the life of the loan. With a 15-year loan, payments are higher than a 30-year loan, but the loan is paid off sooner. 
• 1, 3, 5, 7, 10 Adjustable Rate Mortgages These types of mortgage programs allow you to carry a fixed interest rate for a specified amount of time. Once that time is up, you will assume an adjustable rate for the remaining life of the loan. For example, if you choose a 3-year adjustable rate mortgage, you would have a fixed interest rate for the first three years of the loan and an adjustable rate for the remainder.  
• 10/1, 7/1, 5/1, 3/1 Treasury ARMs These loans provide for a fixed interest rate for a specified amount of time. After that, you pay a variable interest rate with annual adjustments. For example, if you selected a 10/1 Treasury ARM  loan, you would have a fixed interest rate and fixed monthly payments for the first 10 years of the loan. The remaining life of the loan would assume a variable rate annually.  
• 3-Year, 1-Year, 6-Month Treasury ARMs This type of loan applies adjustments to the interest rate payments in various ways. For example, if you selected the 6-month option, your interest rate would adjust every six months. In comparison, if you selected the 3-year option, your interest rate would adjust every 36 months.  
• Jumbo Loan Programs These mortgages allow you to borrow more than an amount set by the Federal National Mortgage  Association. In most (but not all) U.S. counties, any mortgage of more than $417,000 is a jumbo loan -- and jumbo mortgages have higher interest rates than smaller loans. In counties with high home prices, borrowers can get mortgages for more than $417,000 without paying the higher jumbo interest rates. 
• Conventional Loan Programs Any loan that allows you to borrow within the amount set by the Federal National Mortgage  Association.