Refinance Your Florida Home: Lower Payments & Cash-Out Options

Refinancing requirements in Florida vary by loan type: Conventional refinance requires 620+ credit score and 43% DTI or less. FHA streamline refinance requires 580+ (or whatever you qualified at originally) and may not require income verification. VA streamline (IRRRL) often has no minimum credit score or DTI requirement. Cash-out refinances have stricter requirements: 640+ credit score and 43% DTI for conventional, 580+ for FHA cash-out.

Refinance closing costs in South Florida typically range from 2-5% of the new loan amount. For a $400,000 refinance, expect $8,000-$20,000. This includes lender origination fees, appraisal ($500-$700), title insurance, recording fees, prepaid property taxes/insurance, and discount points (if you choose to buy down your rate). Your annual percentage rate (APR) reflects most of these costs. You can choose to roll closing costs into your new loan amount or pay them out of pocket. No-closing-cost refinances are available with slightly higher interest rates.

Refinance timelines in Florida: Streamline refinances (FHA/VA) can close in 15-30 days. Rate-and-term conventional refinances take 30-45 days. Cash-out refinances take 30-45 days (sometimes 45-60 days due to additional underwriting). Our process: Application → Appraisal (1-2 weeks) → Processing (7-10 days) → Underwriting (5-7 days) → 3-day rescission period → Closing. We can expedite for time-sensitive situations.

Refinancing makes sense when: (1) Interest rates are at least 0.75-1% lower than your current rate, (2) You plan to stay in the home long enough to recoup closing costs (typically 2-3 years), (3) You can shorten your loan term without significantly increasing monthly payments, or (4) You need to access equity for debt consolidation, home improvements, or investments. Use our break-even calculator to determine if refinancing saves you money.

Yes, cash-out refinancing is available in Florida. For primary residences: Conventional loans allow up to 80% LTV (loan-to-value), FHA allows up to 80% LTV, VA allows up to 90% LTV (100% with certain eligibility). For investment properties, max LTV is typically 70-75%. On a $500,000 home with $200,000 owed, you could potentially take out $200,000 cash with a conventional loan (80% of $500k = $400k new loan, minus $200k payoff = $200k cash).

Rate-and-term refinance changes your interest rate or loan term without taking cash out (you can add closing costs to the loan). This typically offers the lowest rates and easiest qualification. Cash-out refinance allows you to borrow more than you owe and take the difference in cash, but has stricter requirements: higher credit scores, lower max LTV, and slightly higher interest rates.

Yes, streamline refinancing programs make it easier: FHA Streamline Refinance requires no appraisal, minimal documentation, and no income verification if you're current on payments. VA IRRRL (Interest Rate Reduction Refinance Loan) has no appraisal, no credit score requirement, and minimal documentation. Both programs can close in 15-30 days and help you lower your rate with minimal hassle.

It depends on the loan type: Most conventional and cash-out refinances require a new appraisal ($500-$700). FHA streamline refinances do NOT require an appraisal. VA IRRRL refinances do NOT require an appraisal. Some lenders offer appraisal waivers on low-LTV conventional refinances if you have strong equity. Appraisals in hot markets like Boca Raton, Miami Beach, and Naples often come in above purchase price, giving you more equity.

For most cash-out refinances on a Florida primary residence, you need to keep at least 20% equity in the home after the new loan closes — conventional and FHA cash-out loans are typically capped at 80% loan-to-value (LTV). Eligible veterans using a VA cash-out refinance may go up to 90% LTV with many lenders. In practice, that means your current loan balance plus the cash you take out (plus any financed closing costs) cannot exceed 80% of the appraised value on a conventional loan. The more equity you have above that threshold, the more cash is available to you.

The cash you receive is loan proceeds, not income, so it is generally not taxable — and Florida has no state income tax in any case. However, Florida does charge two closing-cost items on new mortgage notes: a documentary stamp tax of $0.35 per $100 of the note amount and a nonrecurring intangible tax of $0.002 per dollar of the mortgage. These are included in your Loan Estimate so there are no surprises at closing. For questions about your personal tax situation, such as mortgage interest deductibility, consult a tax professional.