Who this is for
Refinancing replaces your existing mortgage with a new one. Florida homeowners usually refinance to change the interest rate, to remove mortgage insurance (PMI or FHA MIP) after building equity, to shorten the term, or to take cash out against equity. Whether it makes sense depends on your current loan, the new loan's terms and costs, and how long you plan to keep it.
The types of refinance
Rate-and-term refinance
- Change your rate or loan structure without taking cash out.
- Remove mortgage insurance: on a conventional loan, borrower-paid PMI can often be cancelled without refinancing once you reach the federal Homeowners Protection Act thresholds. On an FHA loan, MIP lasts for the life of the loan if your original loan-to-value was above 90%, or 11 years if it was 90% or less (for FHA case numbers from June 2013 on). If MIP is for life, refinancing into a conventional loan is the usual way to remove it.
- Shorten the term: a shorter term raises the monthly payment and reduces the total interest you pay over the life of the loan.
- Best for: market rates have moved enough since you closed, or you have enough equity to remove mortgage insurance.
Cash-out refinance
- New, larger first mortgage that pays off your existing loan and gives you the difference in cash for renovations, debt consolidation or another purchase.
- Limits: cash-out loans have lower loan-to-value caps than purchases. Fannie Mae generally requires your existing first mortgage to be at least 12 months old. FHA cash-out is capped at 80% loan-to-value and requires 12 months of ownership and occupancy. VA allows cash-out on eligible properties, and lenders set their own caps.
- Trade-off: a cash-out refinance re-prices your entire balance at today's terms. If you want to keep your existing first mortgage, a HELOC or fixed second mortgage may fit better.
Streamline refinance (FHA & VA)
- FHA Streamline (FHA to FHA) and VA IRRRL (Interest Rate Reduction Refinance Loan, VA to VA) are reduced-documentation refinances for borrowers already in an FHA or VA loan.
- Rules: both require seasoning (at least 210 days and six monthly payments on the current loan) and a net tangible benefit to you. An appraisal usually isn't required, and income verification is often reduced, though lenders can add their own requirements. FHA Streamlines aren't available to non-permanent residents for case numbers assigned from May 25, 2025.
- Best for: existing FHA or VA borrowers whose situation fits the program rules.
Start with break-even. Divide your total closing costs by the monthly payment difference to estimate how many months it takes to recover the costs. If you expect to sell or refinance again before then, the refinance probably doesn't pay back. Also compare total interest over the time you'll keep the loan, not just the monthly payment.
Run your break-even first
Before anything else, the numbers have to work. Use the refinance break-even calculator to model it yourself, or send us your current loan details to compare against actual Loan Estimates. If a refinance doesn't clearly beat your current loan, keeping what you have is the right answer.
Florida-specific costs to build into the math
- Doc stamp & intangible tax. Florida charges documentary stamp tax on the new note (F.S. 201.08) and a nonrecurring intangible tax on the new mortgage (F.S. 199.133). Both are based on the loan amount, both show on your Loan Estimate, and both belong in your break-even.
- Homestead & Save Our Homes. Refinancing your homestead, rate-and-term or cash-out, does not reset your Save Our Homes assessment cap, because ownership doesn't change (F.S. 193.155). A sale is what resets it, subject to portability rules.
- Insurance re-verification. The lender checks your hazard (including wind) and any required flood coverage at refinance. A lapsed or under-insured policy can hold up closing, so confirm coverage before you apply.
- Appraisal. Your equity, and whether you can remove mortgage insurance or take cash out, depends on the appraised value. We review recent sales with you before an appraisal is ordered.
- Right to cancel. When you refinance your primary home with a new lender, federal law generally gives you three business days after closing to cancel (Reg Z 1026.23), so funds are released after that period.
Common scenarios
Remove MIP
FHA loan with lifetime MIP
If your FHA MIP lasts for the life of the loan and you now have more equity, refinancing into a conventional loan can remove FHA mortgage insurance. Compare the new loan's costs and terms first.
Rate Change
Rates moved since you closed
A rate-and-term refinance can make sense when the payment difference recovers the closing costs well before you expect to sell or refinance again.
Shorten Term
Shorter term
Higher monthly payment, less total interest. A fit when cash flow is strong and paying off the home sooner is the goal.
VA IRRRL
Veteran, existing VA loan
A streamlined VA-to-VA refinance with reduced paperwork and usually no appraisal. Seasoning and net tangible benefit rules apply.
When refinancing isn't the move
- You're moving soon. If you'll sell before the break-even point, the closing costs never pay back.
- You want to keep your current first mortgage. A cash-out refinance replaces the whole balance. A HELOC or fixed second leaves your existing first mortgage in place.
- The benefit is marginal. A small change in rate may not recover Florida closing costs, including state taxes on the new loan.
- You'd restart the clock without a plan. Moving a loan you're years into back to a new 30-year term can raise total interest even with a better rate. Match the new term to your goal.
FAQ
What does it cost to refinance in Florida?
Closing costs vary by lender, loan amount and loan type. They typically include lender charges, title insurance and settlement fees, an appraisal (unless waived), recording, and Florida's documentary stamp and intangible taxes on the new loan. Some costs can be financed or offset with lender credits in exchange for a higher rate. Your Loan Estimate itemizes every cost, and we review it with you line by line.
How much do rates need to drop to make refinancing worth it?
There's no fixed rule of thumb; it comes down to break-even. If the monthly difference recovers your closing costs before you'd sell or refinance again, it may be worth it. The calculator shows the break-even month for your numbers.
Can I refinance to get rid of FHA mortgage insurance?
Often, yes. For FHA case numbers from June 2013 on, MIP lasts for the life of the loan if your original loan-to-value was above 90%, and 11 years if it was 90% or less. If yours is for life, refinancing into a conventional loan is the usual way to remove it. If the new conventional loan is above 80% of the home's value it will have PMI, which can be cancelled later.
Does a cash-out refinance reset my Florida property taxes?
No. Refinancing your homestead, rate-and-term or cash-out, does not change ownership, so it doesn't reset your Save Our Homes assessment cap. Selling and buying a new home is what triggers a reset, subject to portability rules.
What affects a refinance timeline?
The appraisal (if one is needed), payoff and title work, insurance verification and how quickly documents come back. Streamline refinances usually move faster because they often skip the appraisal and full income documentation. Refinances of a primary home also have the three-business-day right to cancel before funds are released.