Florida Mortgage Glossary — 50 Terms Every FL Buyer Should Know in 2026

Educational content only. This article is for informational purposes and does not constitute financial, legal, or lending advice. Loan programs, rates, and eligibility requirements change frequently. Consult a licensed mortgage professional before making any borrowing decision. Mortgage Capital | NMLS# 1859012 | Licensed in Florida.

This Florida mortgage glossary defines the 50 most important terms every buyer, seller, and investor should know in 2026. Understanding mortgage terminology makes you a more empowered borrower — it helps you compare lenders, understand your Loan Estimate and Closing Disclosure, and ask the right questions before signing. Many of these terms appear on standard Florida mortgage documents; knowing them prevents surprises at closing.

Key Rate and Cost Terms

APR (Annual Percentage Rate) — includes rate plus fees in a single annual cost figure; always higher than the note rate. The gap between APR and interest rate tells you how fee-heavy a loan is. Rate lock — guarantees your interest rate for a set period, typically 30–60 days; longer locks may cost a small fee. Float down — option to lower your locked rate if rates improve before closing. Points — prepaid interest that permanently lowers your rate; 1 point = 1% of loan amount, typically reduces rate by 0.25%.

Loan, LTV, and Property Terms

LTV (Loan-to-Value) — loan amount ÷ appraised value; 80% LTV = 20% equity. CLTV (Combined LTV) — adds all liens together; relevant when you have a HELOC or second mortgage. DSCR (Debt Service Coverage Ratio) — rental income ÷ PITIA; used to qualify investor loans without W2 income. ARV (After-Repair Value) — used in hard money loans to value a property after planned renovations. DTI (Debt-to-Income Ratio) — total monthly debt payments ÷ gross monthly income. PITI — Principal, Interest, Taxes, Insurance; the four components of a mortgage payment. HOA dues are sometimes added to make PITIA.

Florida-Specific Mortgage Terms

Homestead Exemption — reduces taxable property value by $50,000 for primary Florida residences; requires application with the county property appraiser after closing. SOH (Save Our Homes) — Florida's 3% annual cap on assessment increases for homesteaded properties; a major long-term tax advantage. Documentary Stamp Tax — Florida excise tax on deed ($0.70 per $100) and new mortgages ($0.35 per $100). Intangible Tax — $0.002 per dollar on new Florida mortgage balances. Title insurance is mandatory on all Florida mortgage transactions — both the lender's policy and the owner's policy.

DPA Program and Lender Terms in This Florida Mortgage Glossary

DPA (Down Payment Assistance) — second mortgage or grant covering down payment and closing costs; often 0% interest and deferred. Hometown Heroes — Florida Housing DPA program for 50+ qualifying occupations including educators, first responders, and healthcare workers. SHIP (State Housing Initiatives Partnership) — county-level grants administered by Florida counties for income-qualifying buyers. DU (Desktop Underwriter) / LPA (Loan Product Advisor) — automated underwriting systems used by Fannie Mae and Freddie Mac respectively to issue approvals. LLPA (Loan-Level Pricing Adjustment) — Fannie/Freddie risk-based fee added to conventional loan rates based on credit score, LTV, and loan type. Knowing this Florida mortgage glossary helps you have more productive conversations with any licensed Florida mortgage broker.

For more answers, visit our Florida mortgage FAQ page. To see today's rates for every program in this glossary, visit our Florida mortgage rates page.