Some buyers decide to make cash purchases in Southwest Florida. However, others find they can obtain a low interest mortgage and make a greater return on their dollars invested in another way.

Sometimes the mortgage is planned for only 2 or 3 years, while other situations may be suited to long-term financing. Single-family homes, condominiums, villas, and cooperatives each offer certain lifestyle advantages, and there may be differences with each as it relates to obtaining financing.

If you plan on getting a mortgage, determine your estimated
monthly payments by going to our Mortgage Calculator.

If you wish, we will provide a list of lenders that our clients have successfully worked with in the past. In addition to that list, the owner of Premier Properties of Southwest Florida, Inc., has a beneficial interest in LSL Mortgage which offers a wide assortment of financing products and services. (239) 380-3297 www.lslmortgage.com

We suggest you compare the fees and services of several companies before making a determination.

Adjustable Rate Mortgage (ARM) Any mortgage with an adjustable interest rate during the term of the loan. The interest rate is fixed for a specific period of time and then adjusts to an index rate plus a margin. For example, a 7/1 would be a seven-year fixed rate then adjusted every year thereafter.

Conventional Loan A mortgage loan up to $359,650

Jumbo  Mortgage loan amount over $359,650 to $1,000,000

Super Jumbo's  Mortgage loan amount over $1,000,000

Fixed Rate   The interest rate is fixed for the entire term of the loan. The term of the loan can be 10, 15, 20, 25 or 30 years.

Adjustable Rate   The interest rate is fixed for a specific period of time and then adjusts to an index rate plus a margin.  The term of the loan can be as follows:

        1/1            One year fixed, adjusts every year thereafter
        3/1            Three years fixed, adjusts every year thereafter
        5/1            Five years fixed, adjusts every year thereafter
        7/1            Seven years fixed, adjusts every year thereafter
      10/1            Ten years fixed, adjusts every year thereafter

The indexes that affect adjustable rate mortgages are listed daily in The Wall Street Journal.  The most common indexes are The  London Interbank Offered Rate (LIBOR), Cost of Funds Index (COFI), Cost of Savings Index (COSI), Monthly Treasury Average (MTA) and Treasury Bills (T-Bill)

Interest Only   An Interest Only mortgage allows payments of loan interest without any payment on the principal amount of the loan for a specific period of time.

LIBOR Products The London Interbank Offered Rate is an index used in determining Adjustable Rate Mortgages and is found daily in The Wall Street Journal.  The Adjustable Rate Mortgage has a fixed interest rate for a specific period of time and then adjusts to the LIBOR index plus a margin.

1 Month LIBOR   Rate fixed for one month, then adjusts every month
3 Month LIBOR   Rate fixed every three months, then adjusts every three months
6 Month LIBOR   Rate fixed for six months, then adjusts every 6 months
1 Year   LIBOR   Rate fixed for one year, then adjusts every year

Investment Property   Mortgage on a 1-4 unit property, non-owner occupied

Equity Lines   Loans made against the equity in a specified property.

GI Loan (also VA loan): Loans that are insured by the Veterans Administration and are available to qualified and eligible veterans (usually 120 days of active duty in the armed forces qualifies). This loan program can provide up to 100% of the acquisition funds for a home loan.