A Florida cash out refinance replaces your current mortgage with a larger one and pays you the difference in cash. This guide walks you from the first equity calculation to closing, including what it costs and which program fits your situation. Before you start, gather your latest mortgage statement, a rough home value, and a clear goal for the cash. Duane Buziak, NMLS #1110647, a Florida-licensed mortgage broker serving clients statewide, explains each step.
Step 1: Define What the Cash Is For and Whether a Refinance Fits
Start with the purpose, because it decides the tool. Cash out works well for renovations that add value, consolidating high-interest debt, funding a down payment on an investment property, or building reserves. It works poorly for spending that leaves nothing behind, since your home secures the debt.
A few terms first. Equity is your home’s value minus what you owe. Loan-to-value (LTV) is your loan balance divided by the home’s value. A rate-and-term refinance changes your rate or term without taking cash out. A cash out refinance pays off the existing mortgage with a new, larger loan and gives you the difference.
The most common misconception is that only the cash portion gets the new rate. It does not. The new rate applies to the entire balance, so you are resetting the whole loan. If you hold a first mortgage at a rate well below today’s market, that matters a great deal.
In that case, compare against a second lien such as a HELOC or home equity loan, which leaves your first mortgage untouched. As of October 2026, check current market rates before assuming either path is cheaper. A HELOC is not always the winner either: variable rates, draw-period limits, and a smaller borrowing ceiling can make a full refinance better, especially for large amounts or when your current rate is not low.
Write down the amount you need, what it will do, and how you will repay it. Duane Buziak advises homeowners to treat that repayment plan as part of the decision, not an afterthought. If you cannot describe it in a sentence, pause before moving on.
Step 2: Calculate Your Usable Equity and Maximum Loan Amount
Two formulas do most of the work:
- Maximum new loan = home value x maximum LTV
- Cash to you = maximum new loan – payoff of current mortgage – closing costs and prepaid items
Maximum LTV depends on occupancy and program. Duane Buziak offers cash out refinances up to 90% LTV on eligible scenarios. Conventional limits are typically lower, particularly for investment properties, and guidelines change, so verify current guidelines for your exact scenario. VA cash-out limits should be confirmed on the VA.gov cash-out refinance page.
Here is an illustrative example with round numbers. Suppose your home is worth $450,000 and you owe $240,000, and the program allows 80% LTV:
- Maximum new loan: $450,000 x 0.80 = $360,000
- Less payoff: $360,000 – $240,000 = $120,000
- Less estimated costs and prepaids (say $10,000, an assumption): roughly $110,000 in cash
Your actual figure will differ, and the closing cost line in particular needs a real estimate, which Step 5 covers.
The biggest mistake here is trusting an online estimate for the value. Automated valuations can miss condition, upgrades, and recent nearby sales. The number that counts is what an appraiser will support. Pull recent comparable sales for your neighborhood, be conservative, and run the formula at a value 5% lower to see whether your plan still works.
If your county is high-cost, also check the current conforming loan limit for that county on the FHFA site, since loans above it move into jumbo territory with different rules.
Step 3: Choose the Right Cash Out Program for Your Situation
Your occupancy and income type narrow the field quickly.
Conventional cash out
This is the standard path for primary homes and second homes, qualified on your income, assets, and credit. Verify current LTV caps and credit score requirements for your occupancy type, since they differ between a primary residence and a second home.
VA cash-out refinance
Florida veterans and service members can use their VA entitlement to refinance and take cash. Jacksonville, with its heavy military presence, is where I see this most. The VA publishes the rules on its cash-out refinance page and the funding fee and closing costs page. Funding fee amounts depend on your service history, down payment or equity, and whether you have used the benefit before, and they change, so confirm the current figure.
DSCR cash out for investors
DSCR stands for debt service coverage ratio: monthly rent divided by PITIA (principal, interest, taxes, insurance, and association dues). These loans qualify the property on its rental income rather than your personal income, which suits investors with Miami, Tampa, or Orlando rentals, self-employed owners, or anyone with several financed properties. Minimum ratios and LTV caps vary by program.
Why the broker route matters
A single bank offers a single product shelf. Duane Buziak, as an independent broker, can shop hundreds of wholesale lenders at one time, which matters most when your scenario is not a textbook fit, such as a DSCR cash out at higher leverage or a VA loan with unusual circumstances.
Step 4: Get Pre-Qualified With a Soft Credit Pull
Many homeowners believe any pre-approval means a hard inquiry and a dip in their score. It does not have to. Through NoTouch Credit Pull, Duane Buziak runs a soft credit pull mortgage review that shows your eligibility and likely options without a hard inquiry, so comparing programs does not cost you points. It works as a no credit hit mortgage application stage: you see where you stand before committing to anything.
The review uses Vantage Score 4.0 data. That is useful for screening, but it does not replace the credit check underwriting performs later, and the scores used in final underwriting can differ from what you see at this stage.
Be clear on what comes next. A full credit pull happens when you formally apply, because underwriting requires it. Rate quotes before that point are estimates, not commitments. Rates are fixed only when you lock (Step 7), and no one can guarantee a rate or an approval at this stage.
What to have ready for the review:
- Your current mortgage balance and rate
- Your estimated home value and occupancy (primary, second home, or investment)
- The amount of cash you want and what it is for
- For investors, current monthly rent and annual taxes and insurance
The output should be a short list of programs, an estimated maximum loan, and an estimated cash figure. If it is not, ask for it. A soft-pull review earns its value by letting you compare several paths without penalty.
Step 5: Gather Documents and Compare Real Costs in a Table
Collect documents for your borrower type now, so underwriting does not stall later.
- Conventional: two years of W-2s or, if self-employed, tax returns and a year-to-date profit and loss; recent pay stubs; two months of bank statements; your mortgage statement and homeowners insurance declaration page.
- VA: DD-214 or statement of service, Certificate of Eligibility, plus the standard income and asset documents.
- DSCR: current lease agreements, a rent roll if you own several units, the property’s insurance and tax bills, and entity documents if the property is held in an LLC.
Next, compare where you borrow. The table below summarizes how an independent broker differs from a typical retail bank or single-shelf lender.
Independent broker vs. retail bank or single-shelf lender
- Program breadth: Broker: conventional, VA, DSCR, and Non-QM across 500+ wholesale lenders. Retail bank: one institution’s product list.
- DSCR availability: Broker: full DSCR lineup. Retail bank: often limited or not offered.
- Rate shopping: Broker: many wholesale options compared at once. Retail bank: one set of rates.
- Soft-pull pre-qualification: Broker: available through NoTouch Credit Pull. Retail bank: varies, and many pull credit up front.
- Cash out LTV range: Broker: up to 90% on eligible scenarios. Retail bank: varies by product, often lower for investment property.
- Speed to close: Broker: fast close times are a priority, though timing depends on appraisal and file. Retail bank: varies by institution and volume.
Budget for these closing costs: appraisal, title and settlement, broker and lender fees, and Florida taxes tied to the loan. Florida charges documentary stamp tax on the new note and intangible tax on the recorded mortgage. Confirm the current rates on the Florida Department of Revenue documentary stamp tax page before you build your budget, and ask for the taxes as a line item on your estimate.
Some borrowers roll costs into the loan or negotiate credits so there is little to nothing out of pocket at closing. That is a trade-off, since a higher balance costs more over time.
Step 6: Run the Numbers With a Worked Dollar Example
Run your own version of both examples below. All figures are illustrative; actual rates, fees, and ratios depend on your file and the day you lock.
VA scenario in Jacksonville
Suppose a veteran owns a home worth $310,000 with a $190,000 balance. They want $40,000 for repairs. Assume closing costs of $6,000 and a funding fee of 2.15% (a hypothetical figure; confirm the current fee on VA.gov), financed into the loan.
- Base loan: $190,000 + $40,000 + $6,000 = $236,000
- Funding fee: $236,000 x 0.0215 = $5,074
- New loan: about $241,074, roughly 78% of value
At a hypothetical 6.5% for 30 years, principal and interest runs about $1,524. If the old $190,000 loan was at 3.5% with a remaining payment near $1,000, the payment rises by over $500 a month even though you borrowed only $50,000 more. The reason is the rate reset applying to the whole balance.
DSCR scenario for a Tampa rental
Suppose a rental rents for $2,800 a month. The new loan carries principal and interest of $1,900, taxes of $350, insurance of $300, and no association dues, so PITIA is $2,550.
- DSCR: $2,800 / $2,550 = 1.10
- Monthly cash flow before maintenance and vacancy: $250
Minimum DSCR requirements vary by program, and some accept ratios near or below 1.0 with compensating factors, so confirm yours.
Break-even and local context
Divide total closing costs by monthly savings to find your break-even. If a refinance saves $200 a month and costs $6,000, break-even is 30 months. If you may sell sooner, it does not pay. For a cash out where the payment rises, judge the decision by what the cash earns or saves you instead.
For local context, the U.S. Census Bureau’s QuickFacts page for Jacksonville lists median owner-occupied home value and homeownership rate, which helps sanity-check your equity assumptions.
Step 7: Lock Your Rate, Complete Appraisal, and Close
Once you choose a program and structure, decide when to lock. A lock fixes your rate for a set period, commonly 30 to 60 days, with longer locks usually priced higher. Floating can win if rates fall, but it exposes you to increases before closing. If your budget cannot absorb a higher payment, lock early.
The appraisal comes next. Prepare the home by cleaning, repairing visible defects, and making it easy to access. Give the appraiser a list of upgrades with dates and costs, plus recent comparable sales you know of. If value comes in low, you have three options:
- Reduce the cash amount so the loan fits the lower value.
- Challenge the appraisal with specific, recent comparables through a reconsideration of value.
- Wait and revisit after improvements or market movement.
Closing timelines vary with appraisal scheduling, title work, and how complete your documents are. Duane Buziak prioritizes fast close times and is available 24/7 for questions, though speed is typical rather than guaranteed.
On a primary-residence refinance you generally have a three-day right of rescission after signing, during which you can cancel without penalty. Funds are disbursed after that period ends. The CFPB explains the right of rescission, and investment properties are generally not covered.
After closing, confirm your first payment date and amount, get confirmation that your old mortgage was paid off, and keep your plan for the funds in writing so the money does what you intended.
Start Your Florida Cash Out Refinance With a No-Credit-Hit Review
Confirm your equity figure and your program, then request a soft-pull review so you can see real options before anything touches your score. Your dream home in Florida is closer than you think. Let’s turn your homeownership goals into reality with a personalized mortgage solution designed for your unique journey. Get your credit-safe consultation today and discover the loan options that fit your life, backed by trusted guidance every step of the way. Florida Mortgage Rates by Duane Buziak is Florida-licensed and serves clients statewide. For related guidance, see FloridaMortgageBroker.io and FloridaMortgageMaestro.com.
By Duane Buziak, NMLS #1110647
Florida Cash Out Refinance: Frequently Asked Questions
1. What is a Florida cash out refinance?
It is a new mortgage on a Florida property that pays off your current loan and gives you the difference in cash. The new rate and terms apply to the whole balance.
2. How much cash can I take out?
It depends on your home’s appraised value, your payoff, and the maximum LTV for your program. Duane Buziak offers cash out up to 90% on eligible scenarios, subject to current guidelines.
3. Does a cash out refinance affect my credit score?
A soft-pull review does not. A hard inquiry occurs when you formally apply, and the new loan can change your score as accounts update.
4. Can I get a mortgage pre approval without a hard pull?
Yes, for a preliminary review. Through NoTouch Credit Pull, you can see eligibility and options before a full credit pull at application.
5. Is a cash out refinance better than a HELOC?
Not always. If your current rate is far below market, a HELOC or home equity loan may cost less. Compare both at current rates.