Finance
Under Florida's usury law (Chapter 687 F.S.), the maximum interest rate for most consumer loans is approximately:
A10% annually for most loans; higher limits for certain commercial transactions✓ Correct
B25% annually
C5% above the federal funds rate
DNo limit — parties may contract for any rate
Explanation
Florida usury law generally limits interest rates to 18% per year for loans under $500,000, and up to 25% per year for loans between $500,000 and $500 million. Commercial loans over $500,000 have higher limits.
People Also Study
Related Florida Questions
- A Florida lender who charges more than the legal maximum interest rate is guilty of:Finance
- A Florida mortgage broker who receives a 'yield spread premium' (YSP) from a lender for steering a borrower into a higher interest rate loan is:Finance
- A Florida office building generates a Net Operating Income (NOI) of $120,000 per year. Using a capitalization rate of 8%, what is the indicated value?Property Valuation
- A Florida commercial property generates an annual NOI of $90,000. A buyer requires a 9% return. Using direct capitalization, what is the maximum price the buyer should pay?Real Estate Math
- A Florida mortgage loan of $260,000 has an annual interest rate of 6%. What is the first month's interest payment?Real Estate Math
- Under Florida's homeowners' association (HOA) law (Chapter 720 F.S.), an HOA may fine a member a maximum of how much per violation per day?Property Management
- A Florida buyer applies for an FHA loan. The maximum loan-to-value (LTV) ratio for FHA loans with the lowest down payment is:Finance
- A Florida buyer's gross monthly income is $8,000. The lender applies a 36% back-end DTI limit. The buyer already has $600/month in car payments and $200/month in student loans. What is the maximum mortgage payment (PITI)?Real Estate Math
Key Terms to Know
Adjustable-Rate Mortgage (ARM)
A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Math Concepts
Study This Topic
Practice More Florida Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Florida Quiz →