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

• Florida is both an Attorney and Agency state. Licensed Title agent 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 chose to hire an attorney to  assist. 
• All the services are included in one title quote. No junk fees. 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 longer 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, but an increase in the interest rate will result in a higher monthly payment, unlike the  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 which 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 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 are able to 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. Currently, loans under $417,000.00.

There are several types of mortgage plans available that are appropriate for different needs. If you are more  comfortable with a steady payment, then you will want to choose a fixed rate loan. You may select the  common 30 year fixed rate mortgage. This type of loan is beneficial if you plan on living in your home for  several years.  

On the other hand, if you expect to keep the house for only a short period of time or prefer an adjustable  rate mortgage, you will want to investigate other loan options. There are many mortgage programs  available to fit your needs. Consult your real estate professional for more information.