How much equity do I need to do a cash-out refinance in Florida?
To qualify for a cash-out refinance in Florida, you generally must leave at least 20% equity in your home. This means you can borrow up to 80% of your home's current appraised value (known as the Loan-to-Value or LTV limit). We also place a Conventional cash-out up to 90% through a limited-availability program with a select wholesale lender. Eligible Veterans using a VA cash-out refinance can often borrow up to 90% or even 100% of their home's value.
Many Florida homeowners have built equity while paying 24% credit card interest or taking out personal loans for renovations. A cash-out refinance can replace that debt, but the numbers have to improve your monthly cash flow. At AAA Capital Funding, Inc., we run that math with you. Your closing costs are part of that math, and you can often roll them into a Florida refinance instead of paying at closing.
The Mechanics of Extracting Equity
1. The 80% LTV Rule
For standard Conventional and FHA loans, the absolute limit is 80% Loan-to-Value. For example, if your Florida home appraises for $500,000, your maximum new loan amount is $400,000. If your current mortgage balance is $300,000, you have $100,000 in available equity to extract (minus closing costs).
2. Debt Consolidation Strategy
The most strategic use of a cash-out refinance is wiping out toxic consumer debt. By absorbing high-interest credit cards, auto loans, and student loans into your mortgage, you secure a significantly lower interest rate and consolidate everything into one lower monthly payment.
3. Funding Renovations
Instead of draining your liquid savings or taking out a high-rate personal loan, a cash-out refinance allows you to use your home's existing equity to fund major renovations, which in turn forces appreciation and increases the value of the home even further.
See What Your Home Equity Can Do
Rated 4.9 stars on Google and serving Florida since 1997.
We run a line-by-line analysis of your current debt load against your available equity to prove exactly how much a fixed-rate cash-out refinance will lower your total monthly overhead. Lower rates. Better service. Real results.
We'll give you a straight answer based on your real numbers, even if the answer is no.
Call 888-601-8344, under ten minutes, answered the same day. No application, no hard credit inquiry.
Text 954-816-8820 if that's easier.
AAA Capital Funding, Inc. · NMLS #374739 · Jason J. Sarji, NMLS #374700