A cash-out refinance replaces your current mortgage with a larger one and pays you the difference at closing. This guide shows how a cash-out refinance works in Florida, from the equity check to the closing table, and how to run the numbers on your own home before you commit. Have three things ready: your latest mortgage statement, a rough idea of your home’s value, and a clear purpose for the cash. Duane Buziak, a Florida-licensed mortgage broker serving clients statewide, walks through each step and shows how to compare options using a NoTouch Credit Pull.
Step 1: Confirm Your Home Equity and Loan-to-Value Ratio
A cash-out refinance is a new first mortgage, larger than your current payoff, that retires the old loan and sends the remainder to you. It is not a second lien and it is not a HELOC. You end up with one loan, one payment, and a fresh term, usually 30 years.
Two calculations matter at this stage:
- Equity = home value minus your current payoff balance.
- LTV = new loan amount divided by appraised value.
Every program caps the LTV on a cash-out, so the cap decides how much cash you can take. As of 2026, verify these ceilings before you plan around them:
- Conventional: typically up to 80% LTV on a primary residence, per the Fannie Mae Selling Guide. Second homes and investment properties carry lower limits.
- FHA: cash-out is capped below the conventional-to-90% range. Confirm the current figure in HUD Handbook 4000.1.
- VA: VA cash-out refinances are described on VA.gov. Through Duane’s program, qualifying VA scenarios are available up to 90% LTV.
Mistake to avoid: treating an online value estimate as your number. Those tools are a starting point. The appraisal sets the value the loan is built on, and if it comes in lower, your cash shrinks dollar for dollar at the LTV cap.
Florida note: Florida’s homestead protections apply to your primary residence, and they can affect how a refinance is documented. Confirm the specifics with a Florida attorney or your title company before closing.
Step 2: Check Your Credit Without a Hard Inquiry
Credit score drives pricing on a cash-out more than most borrowers expect, because cash-out loans already price higher than a plain rate-and-term refinance. Minimum scores vary by program and change over time, so verify current guidelines instead of relying on a number you read last year.
The usual worry is that shopping will damage your score. A soft credit pull mortgage review avoids that question at the start. Duane Buziak uses a NoTouch Credit Pull, which makes the first look at your file a no credit hit mortgage application step. It references Vantage Score 4.0, and you see where you stand and what programs fit before any hard inquiry is placed.
The CFPB explains how rate shopping works and what to expect on its explore interest rates page. Read it so you understand the rules around multiple mortgage inquiries, then use the soft-pull stage to narrow your options.
Mistake to avoid: letting several sources each run a hard pull before you have compared anything. Sequence it differently: review your options on a soft pull first, then authorize a full credit pull only with the option you intend to pursue.
Also pull your own reports and correct errors now. A wrong late payment or a stale balance can cost you pricing, and disputes take time.
Step 3: Choose the Right Program for Your Situation
Match the program to the borrower, not the other way around. A workable decision rule:
- Veteran or active duty, including many Jacksonville-area households: if you hold a VA certificate of eligibility, price the VA cash-out first. Start with the VA cash-out refinance page.
- Primary homeowner without VA eligibility: conventional cash-out is the usual starting point.
- Investor on a rental property: look at a DSCR cash-out.
DSCR stands for debt service coverage ratio: monthly rent divided by the property’s full payment of principal, interest, taxes, insurance, and any association dues (PITIA). A property renting for $2,600 against a $2,000 PITIA has a DSCR of 1.30. These loans qualify on the property’s rental income rather than your personal income, which suits investors with several properties or complex tax returns.
Occupancy changes everything. A primary home, a second home, and an investment property each carry different maximum LTVs and different rate adjustments, so state the occupancy honestly at the start. Misstating it is a serious problem and it will surface in underwriting.
FHA and other programs may fit specific credit profiles, but eligibility is never assured until a file is reviewed. Treat any program as a possibility until the numbers and documents confirm it.
Step 4: Run the Numbers With a Worked Florida Example
The following is an illustration, not a quote. Suppose a Tampa homeowner’s primary residence appraises at $450,000 with a current payoff of $200,000. The rate and payment figures are hypothetical assumptions, not current market data as of 2026.
- Maximum new loan at 80% LTV: $450,000 x 0.80 = $360,000.
- Gross cash: $360,000 minus the $200,000 payoff = $160,000.
- Estimated closing costs: assume 3% of the new loan, or $10,800.
- Net cash to the borrower: $160,000 minus $10,800 = $149,200.
Now the payment. Assume the existing loan carries a principal and interest payment of $1,150. Assume the new $360,000 loan is a 30-year fixed at a hypothetical 6.75%. Principal and interest on that loan is about $2,335. The payment increases by roughly $1,185 per month, or $14,220 per year. That excludes any change to taxes, insurance, or escrow.
Break-even logic: $14,220 a year against $149,200 of net cash works out to about 9.5% annually. Part of that is principal you are paying down on a bigger balance, so it is not all cost. Still, it frames the question: does the cash earn or save more than that?
- Paying off debt carrying a rate above the new mortgage rate can justify the trade.
- A renovation that adds value or protects the home may justify it.
- A down payment on a rental that clears its own PITIA with room to spare may justify it.
Also note what you give up: if the old loan carried a much lower rate, you are swapping it for a higher rate on the whole balance, not just on the cash. That tradeoff is the core of the decision.
Step 5: Compare Broker Access Against Single-Shelf Options
Where you apply determines which products you can see. An independent broker shops a file across many wholesale sources, while a retail bank or a single-source mortgage company offers its own menu. Both can be reasonable choices. The table shows structural differences, and you should verify any specific claim with the company you are considering.
| Factor | Florida-licensed independent broker | Retail bank or single-shelf company | Notes |
|---|---|---|---|
| Access to wholesale lenders | Hundreds of wholesale lenders | One company’s own products | More sources means more pricing and guideline options for one file. |
| DSCR and Non-QM | Available through wholesale partners | Varies; often limited or unavailable | Ask whether the product exists before you apply. |
| VA cash-out | Available, including up to 90% LTV on qualifying scenarios | Varies by company | Confirm your certificate of eligibility first. |
| Soft-pull pre-approval | NoTouch Credit Pull at Duane Buziak | Often begins with a hard inquiry | Ask when the hard pull happens. |
| Closing speed | Can route to faster-closing sources | Depends on internal capacity | Compare written timelines, not promises. |
Large national originators such as Rocket Mortgage and Movement Mortgage run their own pipelines. Request their Loan Estimate the same way you would any other.
That is the Dare to Compare approach: collect comparable Loan Estimates for the same loan amount, occupancy, and lock period, then set them side by side. Compare the rate, the lender credits or points, and the total closing costs. A no hard inquiry mortgage pre-approval from Duane Buziak lets you begin that comparison while your credit stays untouched.
Step 6: Apply, Appraise, and Close
Gather documents early, since delays usually come from missing paperwork:
- Your latest mortgage statement and a government ID.
- Recent pay records, or current rental leases for a DSCR loan.
- Your homeowners insurance declarations page.
- Your most recent property tax bill.
The sequence runs: Loan Estimate, rate lock, appraisal, underwriting, Closing Disclosure, closing. The CFPB’s Loan Estimate explainer shows how to read the first document line by line.
Florida-specific: insurance can change the payment more than the rate does. Homeowners premiums, wind coverage, and flood insurance, where your property requires it, are typically escrowed into the monthly payment. Ask about wind and flood coverage at the start, and get quotes before you lock so the payment you budgeted is the payment you pay.
Right of rescission: on a refinance of your primary residence, federal rules give you three business days after closing to cancel. Funds are disbursed after that period ends. The rule is found in Regulation Z, section 1026.23. Investment properties are generally not covered, so do not assume the same timeline there.
Closing costs: in some structures, costs are built into the loan through pricing, which can create no-out-of-pocket closing options. The tradeoff is a higher rate or a larger balance, so compare it against paying costs directly. Costs do not vanish; they move.
Step 7: Use the Cash Wisely and Plan Next Moves
Cash from your home’s equity is borrowed against the roof over your head, so spend it on things that improve your position:
- Home improvements that maintain or raise value.
- Paying off high-interest debt, provided you stop the balances from building again.
- A down payment on an investment property with documented rental income.
Be cautious about lifestyle spending. A vacation paid for with a 30-year loan is still being paid for long after it is over.
On taxes, whether mortgage interest is deductible depends on how the proceeds are used and on your personal situation. Ask a tax professional before assuming a deduction.
After closing, set a calendar reminder for about six months out. Check that the first payments posted correctly, review any escrow adjustment after your insurance and tax bills are reconciled, and see whether your new rate still makes sense if market conditions shift.
To start, request a soft pull mortgage broker review with Duane Buziak at Florida Mortgage Rates by Duane Buziak. For related Florida resources, see FloridaMortgageBroker.io and FloridaMortgageMaestro.com.
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