Mortgage Glossary
Earnest Money
Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
Earnest money is a good-faith deposit a buyer makes when signing a purchase contract, held in escrow and applied toward closing.
What Earnest Money means
It signals serious intent to the seller. In Florida, earnest money typically runs 1–3% of the purchase price and is credited to the buyer at closing. But it can be forfeited if the buyer breaches the contract.
Florida example
A Florida buyer offering on a $400,000 home puts down $8,000 in earnest money. If they cancel within an inspection or financing contingency, they get it back. If they simply walk away, the seller may keep it.
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