How to Choose the Right Home Loan in Florida (Orlando & Miami): A Simple Guide That Saves You Money

Choosing a mortgage is not just about getting “approved.” It’s about choosing the right structure for your goals—so your payment makes sense, your cash-to-close is realistic, and your loan doesn’t become a problem later.

At Rey New Homes, I guide buyers through new homes in Orlando and Miami every day. And the buyers who feel most confident at closing are the ones who understand this: the “best loan” is the one that fits your timeline, your budget, and your plan for the property.

Here’s the framework I use with clients to choose a home loan with clarity.

Step 1) Start with the 3 questions that decide everything

Before we even talk loan types, answer these:

1. Is this home for living or investing?

2. How long do you plan to keep it—3 years, 7 years, 15+?

3. Do you want the lowest monthly payment or the lowest total cost over time?

Those answers determine whether you should focus on:

• stability (fixed-rate),

• flexibility (ARM),

• low cash-to-close options (certain programs),

• or lowest long-term interest expense.

Step 2) Fixed-rate vs. ARM (the cleanest decision first)

Fixed-rate mortgage (most common for long-term stability)

Best if you want:

• predictable payments

• you plan to stay long-term

• you don’t want interest rate uncertainty

Typical choice: 30-year fixed for lower payment, 15-year fixed for faster payoff and more equity (but higher monthly payment).

Adjustable-rate mortgage (ARM) (strategy loan, not “bad loan”)

Best if:

• you expect to sell or refinance before the fixed period ends

• you prioritize a lower starting rate/payment

• you have a clear timeline

Rey’s rule: If you can’t confidently explain your exit plan (sell/refi timeline), stay with fixed.

Step 3) FHA vs Conventional vs VA vs Jumbo (which fits your profile)

Conventional loan

Often a strong fit if you have:

• solid credit

• stable income

• you want flexibility in property types

It’s also common for buyers purchasing new construction in Florida, especially when builders offer incentives tied to certain lenders.

FHA loan

Often helpful when:

• you want a lower down payment path

• your credit profile needs more flexibility

• you’re buying a primary residence

Important: FHA has mortgage insurance rules that can impact long-term cost—so we compare the “easy entry” benefit with the total cost.

VA loan

If you’re eligible, VA can be one of the best options because it may reduce upfront barriers and offer competitive terms. If you qualify, it should always be part of your comparison.

Jumbo loan

Relevant when the loan amount exceeds conventional limits in your area. Jumbo loans can work very well for higher-priced homes, but underwriting can be stricter and reserves may be required.

Step 4) Down payment is not the only number—“Cash to Close” is

Many buyers focus only on the down payment, then get surprised by:

• lender fees

• title/settlement costs

• prepaid items (insurance, prepaid interest, escrow setup)

What you want to compare is “Cash to Close” and what you keep in reserves afterward.

Rey’s tip: Never choose a loan that leaves you “house-rich but cash-poor.”

Step 5) Points vs lender credits (lower rate now vs lower cost now)

When comparing loans, you’ll often see two levers:

• Discount points: pay more upfront to get a lower rate

• Lender credits: pay less upfront, usually by taking a higher rate

Which is better depends on how long you’ll keep the loan:

• If you’re staying long-term, a lower rate can win.

• If you expect to refinance or sell sooner, minimizing upfront cost can make more sense.

Step 6) Choose the loan term based on your lifestyle, not your ego

30-year term

• lower monthly payment

• more flexibility

• often preferred for cash flow and planning

15-year term

• higher monthly payment

• faster equity build

• lower total interest in many cases

If you want the “15-year benefit” without the stress, one strategy is a 30-year fixed with the option to pay extra principal when you can.

Step 7) What to compare when choosing a lender (don’t just chase the rate)

To pick the best mortgage offer, compare:

• interest rate

• APR (helps reflect true cost)

• lender fees (origination/processing/underwriting)

• points or credits

• estimated cash-to-close

• lock period and timelines

• responsiveness (speed matters in Florida markets)

Rey’s tip: The cheapest deal on paper can become the most expensive if the lender can’t close on time.

Quick “Which Home Loan Should I Choose?” Scenarios

Scenario A: First-time buyer, primary residence, limited cash-to-close
You may compare FHA vs conventional low down payment options and prioritize predictable monthly payment and manageable upfront costs.

Scenario B: Buyer planning to move again in 3–5 years
You might compare a fixed-rate vs an ARM strategy—but only with a clear exit plan.

Scenario C: Investor buying new construction
Focus on total cash-to-close, long-term operating costs (HOA/taxes/insurance), and a loan structure that protects cash flow.

Scenario D: High-income buyer in Miami purchasing above conforming limits
Jumbo vs conventional structure (if possible), with special attention to reserves, documentation, and closing timelines.

If you’re buying new homes in Orlando or Miami, message me your price range and whether it’s for living or investing. I’ll help you compare options in a simple way—so you choose a mortgage with confidence and no surprises at closing.