Is Now a Good Time to Refinance In Florida? | January 2025

Mortgage rates are declining, which could make refinancing an appealing option for Florida homeowners.

With the average 30-year fixed rate at 6.73% as of December 2024, down from 6.79% last week, homeowners may have opportunities to lower their monthly payments or access equity. 

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Here’s what you need to know to decide if refinancing is right for you.

Florida Mortgage Rates Are Dropping

Mortgage rates in Florida are going down, which means homeowners can save money by refinancing.

Here’s how these lower rates can help you and what you can do to take advantage.

30-Year Fixed Rates Are Lower, Helping Homeowners Save Thousands

The 30-year fixed mortgage rate is now 6.73%, down from 6.79% last week. If your current rate is higher, refinancing could save you a lot of money.

For example, if you refinance a $300,000 loan from 7% to 6.73%, you could save about $50 each month. Over 30 years, that adds up to around $18,000 in savings.

Check your current rate and use a refinancing calculator to see if it’s worth it for you.

15-Year Fixed Rates Are Lower, Helping You Pay Off Loans Faster

The 15-year fixed mortgage rate has dropped to 6.04% from 6.11%. This is a good option if you want to pay off your loan faster and save on interest.

For example, refinancing a $200,000 loan from 7% to 6.04% could save you $15,000 in interest over the loan’s term.

If you have the extra money to afford slightly higher monthly payments, this option could save you money and time.

Adjustable-Rate and Jumbo Loans Are Cheaper, Offering More Options

Rates for adjustable-rate mortgages (ARMs) and jumbo loans are also lower. This can help homeowners with ARMs that are about to adjust or those with large loans over regular limits.

For example, refinancing a $600,000 jumbo loan from 7.25% to 6.8% could save more than $2,700 a year. Talk to your lender to see if refinancing makes sense for your situation.

Check Your Florida Home Refinance Eligibility

Key Benefits of Refinancing

Refinancing can offer significant advantages depending on your needs:

1. Lower Your Rate and Payments: Securing a lower interest rate or extending your loan term can reduce monthly payments and free up cash flow.
2. Switch Loan Types: Move from an adjustable-rate mortgage (ARM) to a fixed-rate loan for stability.
3. Eliminate PMI: If your home value has risen, refinancing may help you drop private mortgage insurance (PMI), reducing monthly costs.
4. Access Equity: A cash-out refinance allows you to tap into your home’s equity for renovations, debt consolidation, or other financial needs.

Check Your Florida Home Refinance Eligibility

Risks and Costs to Consider

While refinancing can save money, it’s essential to understand the potential downsides:

• Closing Costs: These typically range from 2% to 5% of your loan amount.
• Break-Even Point: Calculate how long it will take for your savings to offset the closing costs. If you plan to move soon, refinancing may not be worth it.
• Loan Term Reset: Starting a new 30-year loan could lower your payments but increase the total interest paid over time.
• Equity Requirements: Most lenders require at least 20% equity in your home to refinance.

Check Your Florida Home Refinance Eligibility

Expert Predictions for Mortgage Rates in 2025

Some experts believe mortgage rates could drop further in 2025:

• Rates may reach the mid to low 6% range by the end of December 2024.
• Realtor.com projects a 6.7% year-end mortgage rate.

However, these trends depend on economic factors, such as Federal Reserve decisions. If you’re considering refinancing, act quickly to secure a favorable rate before conditions change.

Check Your Florida Home Refinance Eligibility

Final Thoughts

Refinancing is a big decision, but it can help you lower your monthly payments, free up cash, or eliminate debt faster.

With recent rate cuts and more expected, now is an excellent time to explore your refinancing options in Florida.

Consider your long-term financial plans, the costs of refinancing, and the potential benefits of shortening your loan term.

Taking action at the right time can help secure your financial future and take full advantage of the current rate environment.

Check Your Florida Home Refinance Eligibility