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Evaluating Mortgage Options in Florida

By Allison E. Beatty
Local Lender Columnist
Jun 8, 2006
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The type of mortgage you select can have a dramatic effect on your home buying power and cash flow. Here's an overview on the common mortgage loan programs in Florida.

Mortgage Loans for a Variety of Borrowers

When shopping for a home mortgage in Florida, consider your financial situation and home buying goals. Among the key questions to consider is whether you want a fixed or adjustable rate mortgage. Here are the differences:
  • Fixed rate mortgages offer the stability of set payments for a set period of time.
  • Adjustable rate mortgages have low initial rates that climb slowly after a set period of time. Most lenders have a 5-1 mortgage for example, with a set rate for 5 years. The rate rises the next year and every year after.

Mortgages Options for Seniors and Others

Florida mortgage lenders also offer a host of other options, including:
  • Reverse mortgages, which allow you to tap into the equity in your home. This is ideal for many Florida seniors who have built up equity over the years.
  • No PMI mortgages, which allow you to avoid paying private mortgage insurance.
  • Low documentation loans.
  • Loans for those with less than perfect credit.

Consider Newer Mortgage Programs

Interest only mortgages have captured a lot of attention recently, as home buyers tap into them to increase their buying power. This is a good loan program for:
  • Investors
  • those looking for a short term purchase.
  • those who have the discipline to pay more toward their loan balance.

Check Florida Interest Rates

Interest rates will fluctuate daily, so it pays to work with a Florida lender who will keep you informed of rate changes and advise you on when to lock in a rate. Among the factors that affect your rate are:
  • Your credit score
  • Your job status and employment history.
  • Your mortgage down payment amount and savings.
  • Your mortgage or rental history


About the Author
Allison E. Beatty is a syndicated real estate writer who has been writing columns for 15 years.