Refinance Your Mortgage in Florida

A mortgage refinance is an excellent way to reduce your monthly mortgage payment by accessing a lower interest rate. Given that Florida has no state income tax and lower property taxes than the national average, a reduced monthly payment can significantly cut your expenses, helping you stretch your paycheck or pension further.

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Benefits of Refinancing in Florida

There has never been a better time to refinance your existing home loan. Mortgage rates in Florida are currently lower than the national average, providing a favorable opportunity for refinancing. Plus, these rates are dropping from week to week.

It’s expected that mortgage interest rates will continue to decline throughout 2024 thanks to a cooling market. As the Federal Reserve seeks to ease inflation, now is the perfect time to begin investigating your refinancing options with a loan officer.

But while interest rates and inflation wane, housing prices and insurance rates keep climbing. Another key reason a mortgage refinance is an excellent idea is due to Florida’s hot housing market and insurance industry.

Benefits of Refinancing in Florida

Property values have risen by a shocking 66.3% in the past five years, and the market shows no sign of stopping. As the appraised value of a home rises once a year, your property taxes will also rise, which can be difficult for those on a fixed budget. Saving money on your Florida mortgage any way you can will ensure you have enough funds to cover higher taxes in the future.

Many Florida homeowners were shocked to learn that their home insurance premiums rose by up to 40% last year due to more frequent flooding—and these high costs are not expected to go down any time soon. Reducing your mortgage rate through a refinance ensures you will have extra money available to weather any financial (or literal) storm.

With dropping mortgage refinance rates and rising costs elsewhere in the market, cutting your monthly payments helps you enjoy more savings in the bank and a stronger financial standing.

Why Refinance in Florida with F5 Mortgage?

Refinancing your home in Florida with F5 Mortgage is an excellent idea for homeowners looking to save money, lower monthly payments, or leverage their home equity into new investments.

By working with F5, you’ll get to take advantage of everything we have to offer, including:

Competitive Rates

We’ll help you find the best interest rate possible based on today’s market conditions.

Fast Pre-Approval

You can get a quick pre-approval on your new loan within just a few days – all online.

Many Mortgage Products

Choose the loan type that’s right for you, including fixed-rate and adjustable-rate mortgages. We also offer FHA, VA, and USDA loans.

Full Service

We want you to be confident about the loan program you choose, so our mortgage lenders will work with you throughout the entire process.

Customizable Options

Choose between a wide variety of mortgage types and loan terms.

Enjoy Your Home’s Equity

A cash-out refinance makes it easy to benefit from your hard work in paying off your home’s mortgage.

How Does the Refinancing Process Work in Florida?

Getting a Florida mortgage refinance is very similar to applying for a new home loan, with many of the same qualifications. In both cases, the borrower should gather financial documentation, apply, and wait for approval the the underwriter reviews the financial profile and determines your ability to pay back the loan.

However, most lenders require a better borrowing profile, including a higher credit score, for mortgage refinance than for standard mortgages. There may also be significant closing costs due to a more intensive origination process.

But without the need for a down payment, plus the promise of a lower monthly payment, many Florida homeowners still find that refinancing is worth it. Below, we’ll walk through the process of applying for a mortgage refinance for those with an existing home loan.

Step-by-Step Guide

1. Choose a Refinance Option

To get started, choose what type of mortgage product you would like to pursue. There are typically two different loan options to choose from.

With a rate-and-term refinance, you can change your interest rate and, in some cases, your loan term. You will close out the original mortgage and take out a new loan that covers only the amount you still owe, typically at a lower interest rate. You may also choose to take out a longer or shorter loan. For example, lengthening the term of your loan can lower your monthly payment. 

A cash-out refinance allows you to use your home equity to receive a lump-sum payment. This closes the old mortgage and opens a new, larger mortgage. You would then receive the difference in cash. Cash-out refinancing is a great option if you have owned your home for a long time and would like to use your equity for other things, such as home remodeling or large purchases.

2. Compare Lenders

Once you’ve selected what type of refinance is best for you, compare multiple lenders and what they offer. When comparing, examine their Florida refinance rates, what their loan requirements are, and their customer satisfaction ratings.

You may also want to check if they require private mortgage insurance for mortgage refinance, what credit score they require, or find out if they offer a rate lock period. By comparing multiple lenders, you can help ensure you’ll get the best service and loan terms possible for your new loan.

3. Submit an Application

Next, it’s time to apply. To do this, gather your financial documentation, such as tax returns, account statements, and pay stubs. Your lender will use this information, in combination with your credit score, debt-to-income ratio, and overall income to decide whether to approve your application.

Once your loan has been approved, decide whether you would like to use a rate lock or a floating rate. A rate lock has a lock period of about 15-60 days and ensures you will get the exact interest rate advertised when you were approved. 

With a floating rate, the actual rate of your loan may differ slightly when the closing process is complete. If possible, opt for a brief rate lock to ensure you’re not surprised should the market change quickly during your approval process.

4. Underwriting and Appraisal

Now the underwriting process begins. After your application has been approved, an underwriter will verify your financial documentation and order a new home appraisal to ensure your home is worth the mortgage amount you requested. 

Appraisal is a key element of mortgage refinance, regardless of the type of mortgage or refinance you get. For cash-out refinancing, the appraisal assesses how much money you can receive based on your old loan versus your home’s current worth. When trying to secure a lower monthly payment, your home’s current value will determine whether you have to pay PMI (private mortgage insurance).

5. Close on Your Refinance

Once the appraisal is finished, it’s time to close on the loan. As you did when you first purchased your property, you will choose a closing date and arrive to sign the paperwork. 

While you won’t need to make a down payment, you will need to pay closing costs. There will also be some lender fees, and you may pay discount points if you want to reduce your interest rate further.

Eligibility Requirements

As with any mortgage loan, refinance loans require borrowers to meet certain qualifications.

Length of Home Ownership

Some home loan programs have a seasoning period, during which you cannot refinance. For example, you can’t do a streamline refinance on an FHA loan until you have been making payments for at least six months. Check the terms of your current mortgage to find out if these restrictions apply to you.


In most cases, homeowners are expected to have a loan-to-value ratio of 80% or lower, meaning they must own at least 20% of the home to qualify for a refinance. If you are getting a cash-out refinance, you will need to have a combined LTV that meets the lender’s standards.

Credit Score

You need to have a decent credit score before applying for a refinance home loan. Typically, your FICO score should be at least 620. Even if you meet this minimum threshold, strive to boost your score as much as possible, as this will ensure you can get the best possible mortgage refinance rates.

Debt-to-Income Ratio (DTI)

Your DTI assesses the amount of debt you have, like credit card debt or student loan debt, and compares it to your income. Many mortgage lenders prefer a DTI of around 43%, but some may want lower. You’ll need to prove this through account statements and pay stubs.

Property Type

Depending on whether your property is a primary residence or a vacation home, your lender may have different requirements for refinancing. For example, refinancing a second property will likely come with stricter requirements.

Property Type

The appraisal process is key to refinancing because it identifies your home’s current worth. If your property value is determined to be lower than the amount requested on your refinance loan, you may not be approved.


Before you can be fully approved for a refinance, you will need to seek an inspection to prove your home is in good condition. If your home has significant structural issues that cannot be fixed easily or quickly, getting approved for a refinance will be more difficult.

Florida Refinance Loan Types

You have several options to choose from when it comes to refinancing your home, and you won’t be limited to the type of loan you chose originally. For example, if you started out with a conventional loan, you may be able to refinance through a Federal Housing Administration (FHA) loan.

Below, we will review the different refinance loan types available to Florida homeowners.

  • Florida Conventional Loans

A conventional mortgage is a standard option across the mortgage industry. Unlike other refinance loans, these are loans offered by private lenders and are not backed by the government. You need to have a relatively good credit profile and a low DTI to qualify. You’re more likely to get the best refinance rates if you have a FICO score of 740 or higher.

  • Florida FHA Loans

FHA loans are government-backed, meaning the government will repay the lender if the borrower defaults on the loan. As a result, these refinances have looser approval requirements. You can qualify with a score as low as 580, and you may get approved with a higher DTI than with a conventional loan. 

  • Florida VA Loans

Administered by the Department of Veteran Affairs for military service members or qualifying spouses, these mortgage products offer a lot of flexibility. They often come with excellent mortgage rates because, as with VA loans, the lender is protected by the government if the borrower defaults. If you want to go this route, our team at F5 Mortgage can guide you through the process of applying, including getting your VA Home Loan Certificate of Eligibility. 

  • Florida Streamline Loans

Streamline refinance loans are only for those refinancing an FHA loan with another FHA loan, or anyone refinancing a VA loan with a VA interest rate reduction refinance loan (IRRRL). They are called streamline loans because the approval process is faster and requires less paperwork than other types of refinances.

How Much Does It Cost to Refinance in Florida?

While you won’t pay a down payment to refinance, you will still need to foot some costs during the process. Typically, you can expect to pay between 2% and 5% of the total loan amount through various fees when you close on your loan. For example, if you refinance a $350,000 home, you can expect to pay up to $17,500 in closing costs.

However, most Florida homeowners do not pay that much to refinance. The average closing cost in Florida, with taxes included, is around $5,821.

Fee Breakdown

The following fees make up the closing costs associated with a home loan refinance:

  • Application – $75 to $500
  • Origination – Up to 1.5% of total loan amount
  • Credit Report – Around $30
  • Document Preparation – $50 to $600
  • Home Appraisal – $225 to $700
  • Home Inspection – $300 to $500 
  • Flood Certification – $15 to $25
  • Title Search and Insurance – $400 to $900
  • Recording – $25 to $250
  • Reconveyance – $50 to $65
  • Attorney Fee – $500 or more
California Refinance Fee Breakdown

How to Calculate Your Break-Even Point?

Your break-even point refers to the time it takes to recoup the expense of your refinance. To determine when and if you’ll get your money’s worth from a refinance loan, you’ll need to calculate your break-even point.

Doing this is especially important for homeowners who plan to sell at some point after refinancing. For example, if it’s going to take you three years to realize the savings from your refinance, then it may not be worth it to pursue a lower rate if you plan to move within three years.

To determine your break-even point, start by adding up the total costs associated with pursuing your refinance (except the lender fees, which can sometimes be negotiated). 

The costs you should focus on include:






Credit report

Flood certification

Flood monitoring

Tax monitoring

Tax research

Once you know the total cost, add up the fees you can shop for elsewhere, such as the title services, so that you can compare different lender offers. This will help you decide which mortgage company can give you the best deal.

Now that you have all this information, compare your current monthly mortgage payment to your new estimated monthly payment. Subtract the new payment from the old one to determine how much you can expect to save each month.

Now that you know your monthly savings amount, divide the total cost of the refinance by your total monthly savings to find your break-even point. The resulting number will correspond to a number of months.

For example, if your total costs for the refinance are $5,500 and your monthly savings are $250, it will take you 22 months to break even ($5,500 / $250 = 22 months).

Another way to determine this is by using a mortgage refinance calculator that includes break-even calculations.

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Awesome work. I enjoyed getting help with my loan through F5 Mortgage. Highly recommend to anyone who is looking for true experts.

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