A large part of the typical American dream is to have a car, a job a family and a house. To many individuals that house is a big part of that dream and they are eager to use all of the means at their disposal to experience it up close and personal. We are taught that all things are possible with diligent work, effort, and determination and for many people this is the way to gain a house and the prosperous life that it represents.

To the large majority of working Americans attaining the quintessential American dream is based on financial accomplishments and owning their own home. The home is almost always the greatest asset of individuals and they hunger for the finest one that they can afford. This is why Florida mortgage options were developed….to help consumers realize the joy and financial benefits of home ownership. Since buying a home outright is not a choice for most people a mortgage is available to help them with this tremendously important purchase.

Individuals are able to obtain a long-term loan from a Florida mortgage lender by offering the home as security. This gives them the funds to pay for the home. In exchange the long-term loan, or mortgage, is set up with monthly payments over an agreed upon number of years. Should you not make the payments each month the home goes into default and the lending company will then own, or repossess, the property.

Everyone knows that homes cost a lot of money and this is why home mortgage loans have generous terms or payment periods. Typical mortgages are arranged with terms of 10, 15, 20, or 30 years. You can choose even shorter terms if you like and terms of 15 years or less involve repayment of substantially less interest but the payments are higher because you are also paying more of the principal back each month. The 20 and 30-year Florida mortgage loans have somewhat lower monthly payments and more interest involved, but you do have an advantage of a longer time frame in which to pay off your home.

Your parents or grandparents may have used a local bank to finance their home, but times were different then. Today, most of the funding for homebuyers is arranged and serviced through one of these 3 lending agencies: the Federal National Mortgage Association (Fannie Mae); the Federal Home Loan Mortgage Corporation (Freddie Mac); or the Government National Mortgage Association (Ginnie Mae).

Home loans, including those arranged by Florida mortgage companies have monthly payments that will often include the following amounts, although some borrowers will be responsible for their own taxes and insurance.

• A portion that will be applied to the principal amount of the balance
• A portion to be applied to the interest owed
• Any real estate tax to be paid
• An amount of money for homeowners’ protection

Interested borrowers will find that a Florida mortgage can be arranged as a “fixed rate mortgage loan," or as an “adjustable rate mortgage loan." With a fixed rate, you will have the same monthly payment for the duration of the contract. An ARM has an interest rate that is tied in to the economic conditions and can fluctuate widely. The choice of rate structure is up to the individual borrower.

The Florida mortgage experts can help homebuyers by guiding them through the different types of home loans that are available. Having their expertise can certainly come in handy, especially to those people who are purchasing their first home. If you need help determining if a non-conventional, conventional, fixed, or adjustable rate mortgage or a refinancing option is your best bet, they will be glad to explain to you the benefits of each one. This will then give you the knowledge to help you make an informed home mortgage decision.

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