When looking for a Florida home equity loan, a person needs to decide if he is more concerned with low upfront 
interest payments or low overall interest payments. Florida equity loans, like loans in most states, can have either fixed rates or adjustable rates. A fixed rate loan will generally be more expensive than an adjustable loan in the short run, but over time, it could very well cost a person less money. It is possible for Floridians to find home equity loans with limits between 70 percent and 90 percent. This means that a person with a lot of equity will be able to borrow against a large portion of the house’s actual worth. Unlike many loans, a home equity loan does not have to be used for something specific. It is this particular feature of home equity loans that leads many in Florida to apply for them in the first place. Despite the positives, however, there are risks involved when borrowing against equity, because if a person fails to make payments, he can lose his house.
Payments for Adjustable and Fixed Rate Florida Home Equity Loans
A person in Florida who takes on a 30-year fixed rate loan will most likely pay an APR of around 5.558 percent. Someone who has a loan of 15 years will usually pay an APR of close to 4.971 percent. These rates will remain fixed, so a person knows exactly what they will have to pay towards his loan each year to pay it off during the initial loan term. Rates of adjustable rate Florida loans work much differently. Floridians who receive a 3/1 adjustable loan will pay a fixed rate of approximately 4.922 percent for three years. This low rate will be coupled with monthly payments that can be considerably lower than those of a 15-year fixed rate loan, so during that initial period, a person with a 3/1 loan can save a lot of money. However, when the three years are up, the rate on the loan can shift dramatically. The variable nature of an adjustable equity loan makes it perfect for someone who does not intend to stay in a house much longer than the fixed rate period.
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