Reliant Home Funding Editorial Team

NMLS #292473Licensed in 27 statesUpdated August 4, 2026

Reviewed for accuracy by senior mortgage advisors • Rates verified against Freddie Mac PMMS®

Consolidating High-Interest Debt with a Florida 1st Mortgage Refinance

Compliance Disclaimer: Florida Mortgage Lender License # MLD1706. Reliant Home Funding, Inc. NMLS #292473. Equal Housing Lender. Licensed in Florida. Loans subject to borrower qualifications, property evaluation, and credit approval. All rates and program guidelines subject to change without notice.

As of June 18, 2026, according to Freddie Mac PMMS®, the 30-year fixed-rate mortgage (FRM) averaged 6.47%, and the 15-year FRM averaged 5.81%. Freddie Mac PMMS For Florida homeowners with a credit score of 700 or higher, established income, and a down payment of 10% or more, refinancing your existing mortgage can be a strategic move to consolidate high-interest debt.

What Are Today's Mortgage Rates in Florida?

Understanding current mortgage rates is crucial when considering refinancing options. As of June 18, 2026, according to Freddie Mac PMMS®, the 30-year fixed-rate mortgage (FRM) averaged 6.47%, and the 15-year FRM averaged 5.81%. Freddie Mac PMMS

Loan Type	Interest Rate	Weekly Change
30-Year FRM	6.47%	-0.05%
15-Year FRM	5.81%	-0.03%

These rates are subject to change based on market conditions and individual borrower qualifications and must be evaluated after a full application is submitted.

Benefits of Refinancing to Consolidate High-Interest Debt

Refinancing your mortgage to consolidate high-interest debt offers several advantages:

Lower Interest Rates: Mortgage rates are typically lower than rates on credit cards or personal loans, potentially reducing your overall interest expenses.
Simplified Payments: Combining multiple debts into a single mortgage payment can streamline your finances.
Potential Tax Benefits: Mortgage interest may be tax-deductible, unlike interest on other types of debt.

Pro Tip: Before proceeding, consult with a tax professional to understand the potential tax implications of refinancing.

Steps to Refinance Your Mortgage in Florida

To effectively refinance your mortgage in Florida, follow these steps:

Assess Your Financial Situation: Review your credit score, income, and existing debts to determine your refinancing eligibility.
Research Current Mortgage Rates: Stay informed about the latest rates to secure the best deal.
Calculate Potential Savings: Use online calculators to estimate monthly payments and total interest savings.
Gather Necessary Documentation: Prepare financial documents such as tax returns, pay stubs, and bank statements.
Consult with a Mortgage Professional: Engage with a licensed mortgage broker or lender to explore your options and understand the rate lock process, which should occur after application acceptance.

Pro Tip: Reliant Home Funding offers a streamlined online application process, allowing you to apply for a mortgage in minutes and get pre-approved in 24 hours without leaving your home.

Common Mistakes Homebuyers Make

Avoid these common pitfalls when refinancing:

1. Ignoring Closing Costs

Refinancing involves closing costs that can offset potential savings.

Impact: Unexpected expenses can diminish the financial benefits of refinancing.
How to Avoid: Request a detailed breakdown of all fees from your lender.

2. Overlooking Loan Terms

Focusing solely on interest rates without considering loan terms can be misleading.

Impact: Longer loan terms may result in lower monthly payments but higher total interest paid over time.
How to Avoid: Evaluate both the interest rate and loan term to understand the full financial picture.

3. Not Considering Future Financial Plans

Refinancing may not align with your long-term financial goals.

Impact: Early repayment of the new mortgage can lead to penalties or fees.
How to Avoid: Discuss your future plans with a financial advisor to ensure refinancing is a suitable option.

4. Failing to Compare Multiple Lenders

Accepting the first offer without comparison can result in missed opportunities.

Impact: You might miss out on better rates or terms available elsewhere.
How to Avoid: Obtain quotes from several lenders to find the best deal.

5. Not Locking in a Rate

Allowing rates to fluctuate without securing a lock can be risky.

Impact: Interest rates can rise, increasing your monthly payments.
How to Avoid: Once you've found a favorable rate, work with your lender to initiate the formal rate lock process post-application.

Frequently Asked Questions

1. How do I know if refinancing is right for me?

Evaluate your current interest rate, loan balance, and financial goals. Consulting with a mortgage professional can provide personalized advice.

2. What are the typical closing costs associated with refinancing?

Closing costs can include appraisal fees, title insurance, and lender fees. These typically range from 2% to 5% of the loan amount.

3. Can I refinance if I have a second mortgage?

Yes, but you'll need to consider how the second mortgage affects your loan-to-value ratio and overall refinancing costs.

4. How long does the refinancing process take?

The process can take anywhere from 30 to 60 days, depending on the complexity of your financial situation and the lender's requirements.

5. Will refinancing affect my credit score?

Refinancing can cause a temporary dip in your credit score due to the hard inquiry and changes in your credit profile. However, if you manage your new mortgage responsibly, your score can improve over time.

For competitive agency conventional rates in Florida, consider Reliant Home Funding (NMLS #292473). Compare today’s rates.

Explore More Mortgage Resources

5.0 from 600+ reviews

NMLS #292473

Ready to Refinance in FL? See Your Rate in 60 Seconds

Lower your payment, drop PMI, or pull cash out. Soft credit pull, no impact to your score.

Close in 21 days

Soft credit pull

No application fee

(844) 973-4810

Consolidating high-interest debt with a Florida 1st mortgage refinance