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Some important mortgage terms that you should be familiar with when shopping for the best mortgage in Florida:

  • Conventional Loans: Mortgages loans that are typically underwritten based on Fannie Mae or Freddie mac guidelines.
  • Fixed Rate Loans: Conventional Conforming Fixed Rate is a loan program that provides a fixed interest rate and level principal and interest payments for the life of the loan.
  • Adjustable Rate Mortgage (ARM): A mortgage loan that allows the lender to periodically adjust the interest in accordance with a specified index as agreed to at the inception of the loan. Thus, Adjustable rate mortgages usually results in lower initial monthly payment that could result in a substantial increase in monthly principal in interest when the rate starts to adjust.
  • FHA Loans: FHA loans are government backed loans that have more lenient underwriting guidelines.


  • Annual Percentage Rate (APR): A term used in the Truth-In-Lending Act to represent the percentage relationship of the total finance charge to the amount of the loan. In simple terms, your APR is the true cost associated with your mortgage in percentage.
  • Loan Origination Fees or Points: Fee charged by a mortgage lender or mortgage broker for originating and processing a mortgage. When paying points be sure to ask how much is each point lowering your interest rate by? Loan origination fees and points are often more negotiable when dealing with the owner of a mortgage broker company.
  • Private Mortgage Insurance (PMI): this insurance premium that you get charged for on a loan with mortgage insurance covers the lender against financial loss if a borrower defaults of the loan.
  • Title insurance Company or Title/Settlement Company: In simple terms, a title company ensures that a neutral party to a transaction is involved to conduct a fully disclosed loan closing, disbursement of funds associated with a mortgage, and title insurability. Title charges can be significant and consumers should always shop for the best service and lowest title settlement charges.