top of page
Business meeting

Refinancing Your Mortgage In Florida

Refinancing your mortgage in Florida means replacing your current home loan with a new one, potentially with different terms and a new interest rate. 

 

Why consider refinancing?

  • Lower your interest rate: If current interest rates are lower than your existing mortgage rate, refinancing can potentially save you a significant amount over the life of the loan.

  • Reduce your monthly payment: A lower interest rate or a longer loan term can lead to a lower monthly mortgage payment.

  • Tap into your home equity: A cash-out refinance allows you to borrow against your home's equity, receiving a lump sum of cash at closing. This cash can be used for various purposes like home improvements, debt consolidation, or other financial needs.

  • Change your loan term: Refinance to a shorter loan term to pay off your mortgage faster or extend your loan term to lower your monthly payments. 

 

Types of refinancing options

  • Rate-and-term refinance: This involves adjusting your interest rate and/or loan term without changing the loan balance.

  • Cash-out refinance: This type of refinance involves taking out a new, larger mortgage and receiving the difference between the new loan amount and your existing mortgage balance as cash at closing.

  • FHA Streamline Refinance: Available to homeowners with existing FHA mortgages, this option simplifies the refinancing process by waiving typical documentation requirements like income and employment verification, and credit score verification, making it easier to potentially lower your interest rate or convert an adjustable-rate mortgage (ARM) to a fixed-rate loan.

  • VA Streamline Refinance (IRRRL): For veterans with existing VA loans, this type of refinance reduces the interest rate and potentially lowers monthly payments with minimal documentation and no appraisal required.

  • Conventional to VA Loan Refinance: Veterans with other loan types (conventional, FHA, USDA, etc.) can refinance into a VA loan to potentially benefit from competitive rates and the absence of Private Mortgage Insurance (PMI). 

  • ​

Key requirements and considerations

  • Credit Score: While requirements vary by loan type and lender, generally a credit score of 620 or higher is needed for conventional loans, with FHA and VA loans potentially offering more flexibility, according.

  • Home Equity: A cash-out refinance typically requires at least 20% equity in your home.

  • Debt-to-Income (DTI) Ratio: Most lenders prefer a DTI of 43% or lower.

  • Income and Employment Verification: Lenders will require documentation of a stable income and employment history.

  • Home Appraisal: An appraisal is usually required to determine your home's current value.

  • Closing Costs: Expect to pay closing costs, which typically range from 2% to 6% of the new loan amount.

  • Refinance Purpose: A cash-out refinance allows you to use the funds for various needs, but carefully consider the risks of increasing your debt. 

 

Finding the right lender in Florida

​

Research and compare mortgage lenders in Florida to find the best fit for your needs. 

  • Loan types offered

  • Interest rates and fees

  • Customer service reputation

  • Digital tools and application process 

 

It is crucial to carefully evaluate your financial situation and long-term goals before refinancing. We have an entire network of lending professionals at your disposal throughout the state of Florida. Contact us today to get you going on your refinance journey.​

​

​

bottom of page