Under Florida's general usury statute (Chapter 687, Florida Statutes), what is the maximum interest rate that may be charged on a loan of $500,000 or less that is not otherwise exempt?
Correct Answer
A) 18% per annum
Under Fla. Stat. § 687.02 and § 687.03, the general usury ceiling on loans of $500,000 or less is 18% per annum simple interest; rates above that are civilly usurious (and criminal usury kicks in at 25%).
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Related Topics & Key Terms
Key Terms:
Related Concepts
In the context of foreclosure, a deed transfers ownership of the foreclosed property to the new owner, typically the buyer at a foreclosure sale.
Discount points are upfront fees paid to a lender at closing to reduce (buy down) the interest rate on a mortgage loan. One point equals 1% of the loan amount and typically reduces the rate by approximately 0.25%.
An FHA loan is a mortgage insured by the Federal Housing Administration that allows lower down payments and credit scores than conventional loans. It is designed to help first-time homebuyers and borrowers with limited resources.
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