Buying a house is the most important investment one makes. The first thing we do prior starting our search is looking for a mortgage. The Florida real estate market is thriving. The mortgage Florida interest rates have fallen, giving an advantage to the buyer. However, if it is your first time, then there might be many terms you are unaware of.
Understanding jargons used typically by bankers and lenders can confuse you. These terms are not used in our day to day routines. It is better to get acquainted with them so that the loan approval procedure becomes easy and hassle-free for you.
Adjustable rate mortgage
It is a type of credit in which the interest rate changes periodically. Early on, the interest rate remains unchanged, after which the effect of market condition starts setting in. The lenders also provide a cap on it, which defines the upper limit for change in the rate.
Annual percentage rate
It is the rate charged for a property for an entire year, calculated by considering account interest, discount points, loan insurance and lender fees.
These are expenses that you and the owner have to bear while the ownership is transferred to you. It includes the attorney fees, origination fees, title insurance and escrow payments.
It is the first payment you make to freeze the deal. This has to be paid in cash. It is necessary to facilitate the purchase.
It is a neutral third party that holds all important documents until all the terms and conditions of the agreement are met. An escrow can either be a title company or an attorney.
The insurance protects one against the loss due to disputes over property ownership. The lender also possesses a lender’s policy.
Fixed rate loan
It is a type of a credit that has fixed interest rate throughout its lifetime. The duration of it ranges from 10 to 40 years.
Understanding the terminology will ease the mortgage procedure for you. Only citizens of Florida are eligible for Mortgage Florida. The credits available in the area include federal housing administration loans, consolidation loans, conventional and refinance mortgage.
Mortgage Florida is available at very competitive rates. If you are looking for one, get in touch with All Florida Titles. We are a reliable mortgage company in the area offer loans, title insurance and escrow services. Call us for an appointment or email us your queries.