Putting Light on the Factors That Affect Refinance Rates in Florida

Sometimes the low mortgage rates tempt the loan borrowers to refinance. It is a facility that is opted for re-facilitating the previous loan but under a new set of terms and conditions. But before making any decision to refinance, one needs to know the underlying factors that affect refinance rates in Florida.

refinance rates in Florida

Here is an insight into the most critical factors influencing the refinance rate in one way or another.

  1. The Credit Rating: This one factor holds a great significance when it comes to deciding on a refinance rate. Credit rating defines how worthy you are of getting advances and loans in future. This rating depends on you being punctual with returning your financial obligation.

One should know that lower the credit score, higher is the refinance rate. That is why it becomes important to maintain a good credit score no matter what when lower refinance rates are what you seek for.

2. The Loan Tenure: The amount of time your loan runs for, also decides the refinance rate that would follow. Typically lower the period of a loan, lower is the refinance rate.

That means, if you have a 10-year loan, its refinancing rate would be lower when compared to a loan that runs for 15 years. One should remember though, that the scenario is liable to change based on how the financial dynamics in Florida change.

3. Amount Of Loan

Another major factor depends on how many loans you have actually applied for. Whether the loan amount is larger than the standardized value or lower than a certain value, the interest rate is liable to amplify.

In case, the loan gets below $10,000 or even $50,000 for instance; the interest is even higher. This is because the lenders make very little money in such case. So, in order to compensate, the refinance rate is made to rise. You may consult any reputed financial institution to get an idea about the current mortgage rates in Florida.

current mortgage rates in Florida

4. Residence Type

If you are investing in a single family home or a townhome in Florida, the refinance rate would not be that high and would suit you best. But, it is a condominium construction that you would have to worry about.

The condos attract high refinance rates that, in turn, would be 0.125 to 0.25 percent higher than the standard rates in implementation.

5. Refinance Type

If the refinance is “rate-and-term,” a borrower is liable to pay the same mortgage rate as a borrower who is investing to buy a home. On the other hand, if the refinance type is “cash-out refinance”; the refinance rate is liable to increase by 0.25% if the loan to value ratio comes out to be 70% or even above.

However, if the loan to value ratio stands anywhere at 60% or lower, the refinance rate would not soar to value that are unaffordable.


This is all about the factors that influence refinance rates in Florida. In case of any further assistance, it is highly recommended to consult financial firms in Florida, for a better understanding.