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Refinance · Florida homeowners
Refinancing Your Florida Home
A lower rate is only worth it if the savings repay the cost before you sell or refinance again. We start with what you need the new loan to do, then show the monthly change, the break-even and the long-term cost side by side, so the decision is clear either way.
Today’s Florida refinance rates
0.250 points
$531 lender credit
$544 lender credit
$829 lender credit
0.056 points
Par rates for a rate-and-term refinance of a single-family primary residence, 80% loan-to-value, 780+ credit, 30-day lock, priced in Miami-Dade County. Cash-out and lower credit scores price differently; run your own scenario for exact figures. Price your own Florida scenario, no credit pull.
What do you need the refinance to do?
The right loan depends on the goal. A refinance that lowers your payment can still cost you more over time, and one that raises your payment can save you a fortune. Pick the goal first.
Lower the monthly payment
A lower rate, or a new 30-year term on a loan you have been paying for years. Watch the restart: resetting the clock can add interest even at a lower rate.
Pay the house off sooner
A 15- or 20-year loan, often at a lower rate than a 30-year. The payment may rise, but total interest falls sharply.
Take cash out
Use equity for a renovation, debt payoff or another property. Compare it with keeping your current loan and adding a home equity line.
Drop mortgage insurance
Rising Florida values have pushed many owners past 20% equity. Removing PMI or refinancing out of FHA can save a few hundred dollars a month.
Trade an ARM for a fixed rate
If an adjustable rate is about to reset, locking a fixed payment can be worth more than a small rate difference.
Remove a borrower
After a divorce or a family change, a refinance can take someone off the loan. The remaining owner has to qualify alone.
Does it pay? A break-even you can check
Here is a common Florida case: a $350,000 loan taken in mid-2023 at 7.375%, about three years in. We compare keeping it with three refinances at today’s rates. Costs include Florida’s documentary stamps (0.35%) and intangible tax (0.2%) on the new loan, plus typical lender, title and appraisal charges.
| Balance $338,303 | Rate | Years left | Principal and interest | Monthly change | Months to recover $6,061 | Interest from here to payoff |
|---|---|---|---|---|---|---|
| Keep current loan | 7.375% | 26.8 | $2,417 | None | Not applicable | $437,670 |
| New 30-year | 6.625% | 30 | $2,166 | −$251 | 24 | $441,526 |
| New 20-year | 6.500% | 20 | $2,522 | +$105 | Payment rises | $267,048 |
| New 15-year | 5.750% | 15 | $2,809 | +$392 | Payment rises | $167,372 |
Today’s conforming par: 6.625% for 30 years and 5.750% for 15. The 20-year rate is an estimate between them. Costs of $6,061 are financed or paid in cash; this comparison leaves escrow, which you rebuild and then get back from the old servicer, out of it. Taxes and insurance do not change with a refinance.
The new 30-year lowers the payment the most, and earns back its cost in the months shown. But it restarts the clock, so the interest column tells the rest of the story. The 15-year raises the payment, yet cuts total interest dramatically, which is the better trade for many owners in their peak earning years. The right choice depends on how long you will keep the home and what else the monthly savings would do for you.
A useful rule: if you are not confident you will keep the loan past the break-even month, do not refinance for rate alone. If you might move in two years, a no-cost option, where the lender pays your costs in exchange for a slightly higher rate, can still make sense.
Cash-out refinance: limits and alternatives
A cash-out refinance replaces your mortgage with a larger one and pays you the difference. Each loan type caps how much of your home’s value you can borrow:
- Conventional: up to 80% of value on a one-unit primary home, and you generally need to have owned it at least six months
- FHA: up to 80%, after twelve months of ownership and occupancy with on-time payments
- VA: up to 90% at most lenders, for eligible veterans, and it can also refinance a non-VA loan
- Investment property: commonly 70% to 75%, including DSCR loans that qualify on rent
In Florida, a cash-out refinance pays the state’s note stamps and intangible tax on the whole new loan, not just the cash you take. That makes the cost of a large cash-out higher here than in many states.
| $500,000 home, $240,000 left at 3.25%, need $60,000 | Cash-out refinance | Keep first mortgage, add a HELOC |
|---|---|---|
| Total borrowed | $306,150 (costs financed) | $300,000 |
| Rate | 6.625% on all of it | 3.25% on $240,000, about 8.13% on $60,000 |
| Blended rate | 6.63% | 4.23% |
| Monthly principal and interest | $1,960 | $1,306 + $507 = $1,812 |
| Combined loan-to-value | 61% | 60% |
The first mortgage payment shown is from an original $300,000, 30-year loan at 3.25%. The HELOC rate is an illustration about 1.5 points above today’s first-mortgage par, repaid over 20 years; HELOC rates are usually variable. Florida taxes and estimated costs are financed into the cash-out loan.
Keeping the 3.25% loan and borrowing only the $60,000 separately costs about $148 less each month here, even at a much higher rate on the new money, and it keeps $240,000 of your debt at 3.25% for good. Cash-out wins when your current rate is close to today’s, when you need a large share of your equity, or when you want one fixed payment. We price both, and OnMortgage’s digital HELOC handles lines from $50,000 to $750,000.
FHA streamline and VA IRRRL
If you already have an FHA or VA loan, a streamlined refinance can lower the rate with less paperwork, often without an appraisal.
| FHA streamline | VA IRRRL | |
|---|---|---|
| Who can use it | Borrowers with an existing FHA loan | Borrowers with an existing VA loan |
| Waiting period | At least 210 days from closing and six payments made | At least 210 days from the first payment and six payments made |
| Benefit required | A net tangible benefit, such as a meaningful drop in the combined rate and premium, or moving from an ARM to fixed | A lower rate (or ARM to fixed), with closing costs recovered within 36 months |
| Appraisal | Usually not required | Usually not required |
| Income documents | Limited, depending on the lender and loan structure | Limited; the lender confirms the new payment is reasonable |
| Fees to know | New upfront premium, partly offset by a refund of the old one if your loan is under three years old | Funding fee of 0.5%, waived for veterans exempt due to service-connected disability |
| Cash out? | No | No (a VA cash-out refinance is a separate loan) |
Both programs can add closing costs to the new loan, within limits, so the refinance can be done with little or no cash. See our FHA and VA pages for the loans themselves.
Dropping mortgage insurance
Conventional PMI does not need a refinance to end. You can ask your servicer to cancel it once the balance reaches 80% of the original value with a good payment history, and it ends automatically at 78%. Many servicers also remove it based on a new appraisal once your equity reaches the required level, usually after the loan has seasoned for two years or more. Florida’s price gains since 2020 have put many owners there early, so ask your servicer before refinancing.
FHA mortgage insurance is different. On loans made with less than 10% down, the annual premium lasts for the life of the loan. The way out is a refinance into a conventional loan once you have about 20% equity, which removes the premium entirely and can also lower the rate.
Florida details that catch refinancers off guard
Your homestead stays
A refinance does not change ownership, so your homestead exemption and Save Our Homes cap continue. Adding or removing someone from the deed is a different matter; check with the property appraiser first.
Escrow comes back
You fund a new escrow account at closing, and your old servicer refunds the balance of the old one, usually within about a month. Plan for the overlap.
You do not skip a payment
Interest is paid in arrears, so the first payment on the new loan comes a month or more after closing. The interest for that time is in the payoff and the new loan’s prepaid interest.
Insurance gets reviewed
The new lender checks your homeowners and flood coverage. If your policy has a high wind deductible or lapsed, fix it before you apply.
Three-day right to cancel
On a refinance of your primary home, federal law gives you three business days after signing to cancel. Funds are released after that period.
Condo buildings matter again
Even for a refinance, the lender reviews the association. Buildings with major unfunded repairs can limit which lenders will refinance a unit.
Refinancing in Florida: common questions
How much does it cost to refinance in Florida?
Usually about 2% to 4% of the loan, including Florida’s documentary stamps of 0.35% and intangible tax of 0.2% on the new loan, title, appraisal and lender charges. A lender credit can cover part or all of it in exchange for a higher rate.
How much lower does my rate need to be to refinance?
There is no fixed rule. What matters is whether the monthly savings repay the costs before you expect to sell or refinance again. On larger loans, even a half point can pay; on small balances, it may take a full point or more.
How soon can I refinance after buying?
A rate-and-term conventional refinance can happen quickly, sometimes within months. Cash-out generally requires six months of ownership for conventional loans and twelve for FHA, and streamlines require 210 days and six payments.
Will refinancing reset my property taxes in Florida?
No. A refinance does not trigger reassessment, so your homestead exemption and Save Our Homes cap stay in place.
Can I refinance with a lower credit score?
Yes, though pricing reflects it. FHA and VA streamlines are often the most forgiving, and a conventional refinance with strong equity can offset a moderate score.
Should I refinance into a 15-year loan?
If you can carry the higher payment comfortably, a 15-year loan usually has a lower rate and saves a large amount of interest. If not, a 30-year with voluntary extra payments keeps flexibility.
From Florida homeowners who refinanced with us
What Florida borrowers say after closing with On Mortgage. Five stars on Google (130 reviews) and Zillow (92 reviews).
“Caroline Da Silva from Miami Mortgage Brokers just got us approved for our first mortgage, and we would definitely work with her again after this experience! From the moment our broker connected us with Caroline, she was always several steps ahead throughout the process. We were impressed that Miami Mortgage Brokers had us clear to close a week early,...”
“Chris was outstanding throughout the entire transaction! Always accessible and was able to provide the best financing option when others could not! I would highly recommend him and hope to do more transactions with him.”
“I recently had the pleasure of working with Chris as my loan officer, and I cannot speak highly enough of his exceptional service. He guided me through every step with clarity and patience. What truly sets Chris apart is his remarkable efficiency: not only was he incredibly responsive to my inquiries, but he also expedited the loan process, resulting in the...”
See whether a refinance pays for you
Send us your current balance, rate and goal. On Mortgage will price the options across lenders and show the break-even, and if it does not pay yet, we will tell you what rate would make it worth doing.