Here’s how the Federal Trade Commission has defined home mortgage terminology for you to better understand:

Adjustable-rate loans – also known as variable rate loans, these types of loans usually offer a lower initial interest rate. The interest rate fluctuates over the life of the loan depending on the conditions of the market, but there is usually a set minimum and maximum rate in the loan agreement. When interest rates rise, your loan payment will rise; when interest rates drop, your loan payment will drop.

Conventional loans – these types of loans are ones that are not guaranteed by a government agency such as the Federal Housing Administration, Veterans Administration, etc.

*Fixed-rate loans – *a Florida mortgage with a fixed-rate loan will generally have repayment years of 15, 20, or 30, with interest rates and monthly payments staying the same throughout the duration of the loan.

*Interest rate – *the cost of borrowing money – a percentage rate. Interest rates change often depending on the condition of the market.

Transaction/closing costs – there are many different fees involved in completing paperwork for your Florida mortgage. You need to know the fee types and extras and include them in your housing budget. Transaction, settlement, or closing costs may include some of the following – title examination, title insurance, survey fees, deed preparation fees, attorney fees, settlement documents, etc. Under the Real Estate Settlement Procedures Act, you, the borrower, will receive a good faith estimate of these costs.