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Florida Home Refinance – March 2025

Author: Finance Editors

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Refinancing your mortgage in Florida can save you thousands of dollars over your loan term. Basically, it means your replacing your existing mortgage with a new one with better terms and/or interest. That said, Florida’s real estate landscape also brings its own opportunities and challenges.

 

Updated: March 1, 2025

 
 
 

 
 
 
 

Florida’s real estate market shows good resilience and growth, with property values increasing in recent years. This appreciation has created a decent new amount of equity for many homeowners, opening up more refinancing options.

 

The state’s housing market varies by region:

 
  • Miami and South Florida experience some of the highest appreciation rates, created by international buyers and limited land availability.
  • Orlando and Tampa show strong growth from domestic migration and economic expansion.
  • Jacksonville offers more moderate prices but stable appreciation.
  • Rural areas present unique opportunity and challenge with different property valuation methods.
 

Interest rates in Florida are generally aligned with national averages, but local competition among lenders can create openings for better rates. The state’s high demand for mortgages has attracted numerous lenders, creating a competitive environment that can benefit homeowners looking to refinance.

 
 
 

More Home Loan Resources for Florida Homeowners:

Florida Best Refinance Lenders 

Home Refinance Loan Calculator

Florida Home Equity Loan & HELOC 

Home Equity Loan Calculator

Loans Comparison Calculator: Heloc, Cash-Out, Home Equity, Renovation.

More Resources for Florida Homeowners.

 
 
 

Refinancing Must Know in Florida

 

Property insurance represents an important factor in Florida refinancing decisions. Being in a hurricane region results in some of the highest insurance rates in the country. When looking at refinancing, homeowners must keep an eye on:

 

Insurance Requirements and Costs:

 
  • Base homeowner’s insurance premiums often exceed national averages by 2-3 times.
  • Additional windstorm coverage may be required in certain areas.
  • Flood insurance is mandatory in designated flood zones.
  • Insurance costs directly impact debt-to-income ratios for refinancing approval.
 

Property Tax Considerations:

 
  • Florida’s Save Our Homes (SOH) cap limits annual assessment increases to 3% for primary residences.
  • Homestead exemption provides up to $50,000 in property tax savings.
  • Refinancing doesn’t affect these benefits as long as ownership remains unchanged.
 
 
 

Best Mortgage Refinance Programs for Florida Homeowners

 

Florida offers refinancing options for different homeowner situations. Each has unique benefits and requirements:

 

Conventional Rate and Term Refinance

 

This option changes the term (length of your mortgage) and its rate. It works well for Florida homeowners with good credit and significant equity. Lenders typically require:

 
  • Minimum credit score of 620
  • Maximum debt-to-income ratio of 43%
  • Home equity of at least 20% to avoid PMI
 

Cash-Out Refinance (for home improvement or other reasons)

Popular among Florida homeowners for hurricane upgrades, this option allows using equity for home improvements. For example, a Sarasota area homeowner can use a cash-out refinance to fund $45,000 in hurricane protection upgrades, resulting in a 30% reduction in insurance premiums.

 
 
 

Florida Refinance Rates – March 2025

 
 
    Credit Score  

Satisfaction
  720 – 850 690 – 719 620 – 689  
Florida 6.7% 7.6% 7.0%  
Credit Unions 6.3% 7.4% 8.0% 9.0/10
Online lenders 6.3% 7.5% 8.1% 8.6/10
Banks 6.5% 7.6% 8.3% 7.5/10
30 year fixed rate 6.3% 6.6% 7.8%  
20 year fixed rate 6.1% 6.2% 8.1%  
10 year fixed rate 5.6% 5.8% 7.2%  
7 year ARM 6.4% 6.5% 8.4%  
5 year ARM 6.5% 6.6% 8.3%  
3 year ARM n/a % n/a % n/a %  
30 year fixed rate FHA 7.3% 7.4% 7.7%  
Satisfaction 8.5/10 8.3/10 7.4/10  

Source: MFP’s Community Home Refinance Rates Survey of 2,304 members in the last 30 days.

 
 
 

When Is the Right Time to Refinance in Florida?

 

Your refinance in Florida ideally requires looking at both rates and seasonal factors. These elements can help you maximize savings and minimize potential complications:

 

Rates and Market  Factors:

 
  • Refinance Interest rates should be at least 0.75% lower than your current rate to make refinancing worth it.
  • Home equity positions have strengthened due to Florida’s robust home value appreciation rates.
  • Local market competition among lenders often peaks during winter months when seasonal residents are active
 

Hurricane Season Impact:

 
  • Some lenders can pause refinancing applications during active hurricane warnings
  • Processing times can add 2-4 weeks during peak hurricane season (June-November)
  • Ideally look to refinance during off-season months for smoother processing
 
 
 

How to Apply for a Mortgage Refinance in Florida

 

The refinancing process in Florida requires preparation and attention to some details. Here’s how to process:

 

Evaluating Your Home’s Value

 

Florida’s good real estate market means home values can change significantly in short periods. Before applying:

 
  • Review recent sales of comparable properties in your neighborhood.
  • Consider getting a preliminary appraisal if your area has seen significant price changes.
  • Take into account any hurricane proofing improvements that may increase value.
 

Finding the Right Lender

 

Florida’s competitive lending market offers numerous options:

 

Local Lenders (both banks and credit unions):

 
  • Often better understand Florida-specific challenges
  • May offer more flexible terms for hurricane-prone areas
  • Can provide faster closings due to local market knowledge
 

National Lenders and Online Lenders:

 
  • Generally offer more competitive refinance mortgage rates.
  • Usually have larger refinancing options.
  • Often provide better online application experiences.
 
 
 

Florida Refinance Costs and Fees

 

Refinancing in Florida includes costs that impact the overall value of the refinance process:

 

Typical Closing Costs:

 
  • Title Insurance: $500-$2,500 (required in Florida).
  • Recording Fees: $125-$250.
  • Settlement Fees: $400-$700.
  • Appraisal: $300-$800.
  • Documentary Stamp Tax: $0.35 per $100 of loan amount.
 

Cost Saving Strategies:

 
  • Some lenders offer “no closing cost” refinances in exchange for a slightly higher rate.
  • Title insurance reissue rates can save up to 40% if you refinance within three years.
  • Shopping multiple lenders can force the lender to offset some costs to gain or keep you as a client.
 
 
 

How Property Appraisals Affect Refinancing in Florida

 

Property appraisals in Florida have its own challenges and opportunities:

 

Value added home features:

 
  • Hurricane protection improvements.
  • Energy efficiency upgrades.
  • Pool enclosures.
  • Updated HVAC systems.
  • Modern impact windows and doors.
 

Appraisal waivers:

 
  • Available for some conventional refinances in stable markets.
  • More common in urban areas with abundant comparable sales.
  • Usually not available in flood zones or hurricane-prone coastal areas.
 
 
 

Common Refinancing Challenges in Florida

 

Florida homeowners often face their own challenges when refinancing:

 

Insurance related issues:

 
  • High insurance premiums affect debt-to-income ratios.
  • Insurance claim history can impact loan approval.
  • Requirements for additional coverage in high-risk areas.
 

Solutions and workarounds:

 
  • Shop for lower insurance rates before refinancing.
  • Bundle insurance policies to reduce costs (try to bundle home, car insurances).
  • Making hurricane mitigation improvements to lower premiums.
  • Working with an insurance savvy mortgage broker.
 
 
 

Refinancing Examples in Florida

 

These examples from members illustrate successful refinancing strategies in different Florida markets:

 

Gainesville Family’s Rate Reduction

 

The Martinez family refinanced their $300,000 mortgage:

 
  • Original rate: 6.0%
  • New rate: 4.2%
  • Monthly savings: $325
  • Break-even period: 18 months
  • Total closing costs: $5,850
 

Tampa Area Hurricane Proofing Project

 

The Cohen family in St Petersburg used a cash-out refinance:

 
  • Borrowed: Additional $50,000 for improvements.
  • Improvements: Impact windows ($35,000) and roof strengthening ($15,000).
  • Insurance savings: $2,400 annually.
  • New rate: Only 0.25% higher than previous mortgage.
  • Project paid for itself in insurance savings within 5 years.
 
 
 

What If You Can’t Refinance? Alternatives in Florida

 

When traditional refinancing isn’t possible, Florida homeowners have several other options:

 

Home Equity Lines of Credit (HELOCs)

 

Florida’s strong property appreciation makes HELOCs an attractive option for home projects:

 
  • Flexible borrowing with lower closing costs than refinancing.
  • Interest only payment options during the draw period.
  • Can be used for hurricane improvements or debt consolidation.
  • No need to change your primary mortgage rate.
 

Florida Assistance Programs

 

The state offers several programs for homeowners facing challenges:

 

Hardship Assistance:

 
 

Local Options

 

Many Florida communities offer specific assistance:

 
  • Property tax deferral programs for seniors.
  • Local housing rehabilitation programs.
  • Energy efficiency upgrade financing through utility companies.
 
 
 

Mistakes When Refinancing in Florida

 

Understanding common errors can help make refinancing a success:

 

Insurance related mistakes

 

Important errors that can derail your refinance:

 
  • Not reviewing insurance coverage before applying.
  • Failing to disclose previous insurance claims.
  • Underestimating future insurance premium increases.
  • Neglecting to shop for better insurance rates.
 

Timing and market mistakes

 

Poor rates and timing can cost you:

 
  • Rushing to refinance during hurricane season.
  • Not checking flood zone changes or updates.
  • Failing to account for seasonal market variations.
  • Missing opportunities for better refinance rates due to limited lender shopping
 

Documentation mistakes

 

Errors that can delay or prevent approval:

 
  • Incomplete hurricane mitigation inspection reports.
  • Missing flood certificates.
  • Outdated wind mitigation reports.
  • Insufficient documentation of home improvements.
 
 
 

Frequently Asked Questions (FAQ)

 

How long does refinancing take in Florida?

 

Typical: 30-45 days outside hurricane season. Expect potential delays of 15-30 additional days during hurricane season (June-November). Coastal properties may require extra time for insurance verification.

 

Can I refinance if my home is in a flood zone?

 

Yes, but you’ll need:

 
  • Current flood elevation certificate.
  • Proof of flood insurance.
  • Possible additional appraisal requirements.
  • Lender specializing in flood zone properties.
 

What are the best refinance lenders in Florida?

 

Important factor for good Florida refinance lenders include:

 
  • Experience with coastal properties.
  • Understanding of state insurance requirements.
  • Competitive mortgage refinance rates and fees.
  • Local presence for faster closings.
  • Experience with hurricane-zone properties.
 

Does refinancing affect my homestead exemption?

 

No, refinancing doesn’t affect your Florida homestead exemption as long as:

 
  • You maintain primary residence status.
  • Property ownership doesn’t change.
  • You update your mortgage information with the county.
 

Is there a best time of year to refinance in Florida?

 

Ideal timing:

 
  • January to April: Less competition and typically faster processing.
  • Avoid June to November (hurricane season) if possible.
  • Winter months may offer more lender options due to seasonal residents.
  • That said the best timing is when rates save you money.
 
 
 

End Notes:

 

Refinancing in Florida has unique opportunities and challenges from local factors. Your success depends on knowing the state’s specific requirements, from insurance considerations to timing around seasons.

 

Key Things to Keep in Mind:

 
  1. Look at your current mortgage and financial situation.
  2. Review your property insurance coverage and costs.
  3. Research lenders with good Florida experience.
  4. Consider timing outside of the hurricane season.
  5. Gather required documentation early in the process..
 

Remember: refinancing in Florida requires some additional preparation compared to other states, but the benefits can be big when you plan properly. Work with experienced professionals who understand Florida’s unique mortgage market to ensure the best possible outcome for your home refinancing.