Thinking About Refinancing After the September Rate Cut? Here’s What You Need to Know
If you bought a home here in Tampa Bay in the last couple of years, there’s a good chance you locked in your mortgage when rates were painfully high. Now that the Fed has finally started cutting rates, we’re already getting calls from past clients asking: “Is it time to refinance?”
Here’s what you should know before jumping in.
Why Refinancing Might Make Sense Now
Lower your monthly payment.
Even a small dip in rates can translate into real savings. For example, refinancing a $400,000 mortgage from 7.25% to 6.5% could save you around $200–$250 a month. That’s thousands a year.Free up cash flow.
For families juggling rising insurance and HOA costs here in Pinellas and Hillsborough, that breathing room can make a big difference.Build equity faster.
Some homeowners use refinancing as a chance to switch to a 15- or 20-year loan and pay off the home quicker—though that usually raises the monthly payment.
What a “Free Refinance” Really Means
You might see ads for a “no-cost” or “free” refinance. Here’s the catch:
The lender typically rolls those costs into your interest rate or loan balance.
You’re not paying upfront, but you may pay slightly more over time.
It can make sense if you don’t have cash to cover closing costs—or if you don’t plan to stay in the home long-term. But it’s not truly “free.”
What Refinancing Usually Costs
Typical refinance costs range from 2–5% of the loan amount. On a $400,000 loan, that’s $8,000–$20,000, though not all of it comes out of pocket. Here’s where the money goes:
Appraisal: $500–$800 in Tampa Bay.
Title search & insurance: $1,000–$2,000.
Origination & lender fees: Varies, often 0.5–1% of the loan.
Recording & miscellaneous fees: A few hundred dollars.
Some lenders let you roll costs into the new loan—just know you’re paying for it one way or another.
How the Process Works
Check your credit and equity. The stronger your credit score and the more equity you’ve built, the better your new loan terms will be.
Talk to a lender. They’ll run numbers to show whether refinancing saves you money after factoring in costs.
Apply & lock your rate. Same as when you first bought your home.
Appraisal & underwriting. The lender verifies your home’s value and your financials.
Closing. Just like buying, you’ll sign paperwork and start with the new loan.
The whole process usually takes 3–6 weeks.
Our Take
Refinancing isn’t a one-size-fits-all decision. For some, it’s an obvious win. For others, the math doesn’t work out once you add in fees. The best thing you can do is run the numbers with a lender you trust.
We work closely with a local lender here in Tampa Bay who is transparent, fast, and doesn’t play games with hidden costs. If you’re even thinking about refinancing, reach out—we’ll connect you. A quick call could tell you if it’s worth it.
