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Mortgage Glossary

Homestead Exemption

Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker

Florida's homestead exemption reduces the taxable value of a primary residence by up to $50,000 and caps how fast the assessed value can rise each year.

What Homestead Exemption means

Owners who make a Florida home their permanent residence by January 1 and file by March 1 qualify. The Save Our Homes cap limits annual assessment increases to 3% or inflation. It meaningfully lowers long-term property taxes.

Florida example

An Orlando homeowner filed for the homestead exemption, cutting $50,000 off the taxable value and locking in the 3% Save Our Homes assessment cap.

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Related Mortgage Terms

Housing Expense RatioHousing RatioHUD-1 Settlement Statement
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