“”Material Benefit”” as used in Florida Statutes § 494.00296, is a beneficial change in the current mortgage rates or terms where one or more of the following occurred:

Terms Used In Florida Regulations 69V-40.00111

  • Fixed Rate: Having a "fixed" rate means that the APR doesn't change based on fluctuations of some external rate (such as the "Prime Rate"). In other words, a fixed rate is a rate that is not a variable rate. A fixed APR can change over time, in several circumstances:
    • You are late making a payment or commit some other default, triggering an increase to a penalty rate
    • The bank changes the terms of your account and you do not reject the change.
    • The rate expires (if the rate was fixed for only a certain period of time).
  • Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
    (1) Reduction in Principal Amount of the loan by 10% or more;
    (2) Permanent reduction in the annual interest rate of at least 1% on an annual basis, or
    (3) Conversion of an Adjustable Interest Rate loan to a Fixed Rate loan and the annual interest rate is equal to or less than the current adjustable interest rate.
Rulemaking Authority 494.00296(1)(c) FS. Law Implemented 494.00296(1)(c) FS. History-New 11-9-15.

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