As with all mortgage markets, the rates of interest and terms are changing continuously and it is not feasible for us to recommend any particular product on these pages.

What we can do, however, is to give you an idea as to the process that you will go through in the USA if you decide you want to finance your house purchase with an American mortgage.

Most lenders will expect you to contribute a minimum of 20% of the purchase price of the house by way of a deposit.  This is payable in stages - see the separate section on costs on this site - click here for costs page.

If you pay a deposit of between 20% and 30% then your lender will be obliged to conduct enquiries into your financial position which will include obtaining details of your salary, bank accounts and current borrowing.  With a 30% or greater deposit, the financial institutions will be able to offer you a no-status mortgage, that is one where your salary does not need to be verified.

You will be expected to be able to verify the source of your deposit as the Americans are very keen to be seen to be actively preventing the purchase of these properties being financed from some form of money laundering.  This is not an arduous issue and one that we can discuss with you if you would prefer.

In the UK, the mortgage interest rates you pay on your primary residence will normally be slightly lower than you would pay on a second home.  The same principles apply when you purchase a second home in America, so expect to pay in the region of 1% above the rates advertised for normal home ownership.  Bardell Real Estate will be able to offer suitable advice on the acquisition of a mortgage tailored to your situation and needs.

Most mortgage quotations will be for a 30 year, fixed rate, repayment loan, irrespective of your age.  There is not the same pressure as in the UK to have mortgage terms that end by the time of your 65^th birthday. 

Life assurance policies are not required to cover the loan, these being a matter for you to decide, based upon your personal position.  The mortgage companies are satisfied that there will be sufficient equity in the house that their money is safe in the event of an enforced sale.

You will see that some mortgage companies offer "points" which you can pay for by way of a lump sum.  This is a system whereby your mortgage interest rate can be reduced, usually in steps of 0.1% upon the payment of a lump sum fee.  You should take suitable professional advice if you decide you may wish to purchase points on your interest rate.

Finally in relation to mortgages, there is a market in Florida whereby your loan can be sold on from institution to institution on up to three occasions.  If your loan has a fairly high interest rate compared with the market rates, it is unlikely this will happen to you, but conversely, if your interest rates become attractive compared with current rates, then your chances of having your mortgage sold on to another lender are increased.