The Quick Read: On an FHA cash-out refinance, the federal program sets the loan rules, and the state sets the taxes. Florida charges two taxes on the new loan itself: documentary stamp tax on the note and mortgage, and a nonrecurring intangible tax on the recorded mortgage. Miami-Dade’s well-known special deed rate applies to property sales, not to a refinance with no new deed.
Florida is the worked example here, but the idea is national. Every state layers its own taxes and recording charges on top of the same FHA rules. Read this to learn what those layers look like, what drops off a refinance, and how to check your numbers.
Key Takeaways
- FHA decides how much you can borrow, who can borrow it, and the mortgage insurance. It does not decide state taxes.
- In Florida, both financing taxes follow the final loan amount, not the cash you receive.
- Miami-Dade’s deed-rate variation is a purchase and sale issue. The note and intangible taxes are generally the same statewide.
- Taxes are identical at every lender. The charges worth comparing are the ones a lender controls.
- The 80% cap on a cash-out loan limits both your cash and the base for these taxes.
What an FHA Cash-Out Refinance Is
A cash-out refinance replaces your current mortgage with a larger one and pays you the difference. The FHA version is built for homeowners who live in the property. Across the wholesale programs Lendmire places files with, the FHA cash-out reaches 80% of the home’s value on a home you have owned and lived in for the 12 months before the case number is assigned. Second homes and rentals are not eligible. Occupancy decides the leverage.
You can read how the program fits together on Lendmire’s FHA cash-out refinance program page. Everything there is subject to lender guidelines and full file review. Nothing is a commitment to lend.
HUD used to allow more. HUD Mortgagee Letter 2019-11 lowered the cash-out cap from 85 to 80 percent of adjusted value. HUD said the change protects the FHA Insurance Fund from growing insured balances on cash-out loans. If a website still says 85%, it is out of date.
Key Terms Defined
Doc stamps (documentary stamp tax): A Florida tax on written promises to pay money, such as a promissory note, and on recorded mortgages. The state sets it, not the lender.
Nonrecurring intangible tax: A one-time Florida tax on the value of a mortgage when it is recorded. It is a different tax from doc stamps.
Base loan amount: The loan before the financed upfront mortgage insurance premium is added. FHA figures its premium from this number.
Recording charges: Fees that state and local offices collect for putting your loan documents on the public record.
LTV (loan-to-value): The loan balance divided by the home’s appraised value, shown as a percentage.
Closing agent: The title company or attorney who collects the funds, pays the taxes and gets the mortgage recorded.
How the Loan Is Underwritten, Step by Step
Here is the path from application to closing. Each step affects what you owe in taxes and costs.
1. Eligibility screen. The lender checks 12 months of ownership and occupancy, your mortgage payment history, and the 80% cap. A recent purchase can block a cash-out. So can a recent late payment, depending on the lender’s review.
2. Credit and ratios. On a purchase, the programs we work with start at a 580 decision score. The base debt ratios are 31/43 (housing and total debt against income). Documented compensating factors can stretch them to 40/50 at the top tier, and the automated finding governs most files. Cash-out files are reviewed under lender guidelines.
3. Appraisal sets the ceiling. The maximum loan is 80% of adjusted value. A low appraisal cuts your available cash dollar for dollar.
4. Loan Estimate. The lender lists estimated costs, including the government charges.
5. Signing. You sign the note and the mortgage. In Florida, the taxes attach to these two documents. That is why a refinance with no deed still owes them.
6. Closing and recording. The closing agent collects the taxes. The county clerk records the mortgage and takes in the tax.
7. Comparison. You compare the Closing Disclosure with the Loan Estimate, line by line.
Notice what drives the taxes. It is the final recorded loan amount, and nothing else about you.
Doc Stamps vs. Intangible Tax
Florida’s Department of Revenue says doc stamps apply to notes and recorded mortgages and are paid to the county clerk at recording. The rate on a mortgage is 35 cents for each $100 (or portion of $100) of the debt secured, per the department’s published form. Re-check the current rate before you rely on it.
The intangible tax is 2 mills, which means the secured amount times 0.002. The lender is the legal taxpayer but may pass the cost to the borrower. It is paid at recording.
| Item | What it is charged on | Who owes it |
|---|---|---|
| Doc stamps | The note and recorded mortgage | Borrower, usually at closing |
| Intangible tax | The recorded mortgage | Lender, often passed on |
| Deed doc stamps | The sale deed | Not triggered on a refinance |
Put the two loan taxes together and you get roughly 0.55% of the loan amount. That is the pattern, shown in percentages. Your closing agent confirms the exact figures.
What Does Not Apply to a Cash-Out
Most Miami-Dade closing cost guides were written for buyers and sellers. They lead with deed stamps and the county’s special deed treatment.
The state’s standard deed rate is 70 cents per $100 in every county except Miami-Dade, which has its own variation. On certain non-single-family transfers it also carries a surtax. That is a sale issue. A cash-out refinance has no sale deed, so the deed rate is generally not triggered.
Secondary sources say the note and intangible taxes are statewide, with Miami-Dade changing only the deed. Because the published state guidance does not clearly spell out how the surtax applies to a refinance, have a Florida title or closing agent confirm it.
How the Tax Base Works on an FHA Cash-Out
The base is the full new loan. It is not just the cash you take out. Say your new loan is 80% of the home’s value. Both taxes run on that full 80%, even if only a slice of it reaches your hands.
A few details matter:
- Financed premium. FHA charges an upfront mortgage insurance premium of 1.75% of the base loan, and it is financed. HUD’s FHA Answers page says it is collected at closing. Financing it makes the note bigger, and a bigger note generally means a bigger tax base. Confirm the exact treatment with your Florida title agent.
- Rounding. Doc stamps count each $100 or portion of $100. A little extra on the loan can add a step.
- Rolling in costs. Financing the taxes or other closing costs raises the base too, though the 80% cap still holds the total in place.
- Collateral limit. The taxed amount cannot exceed the value of the Florida real property securing the loan.
The annual premium is separate. It runs between 0.15% and 0.75% of the balance, depending on term, loan amount and LTV. It is collected monthly as part of your payment. On a thirty-year loan above 90% LTV it lasts for the term. At or below 90%, it ends after eleven years. A cash-out loan at 80% LTV falls into the second group. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
The Full Closing-Cost Stack
The taxes are one slice of the closing cost. Here is who controls each piece.
| Cost bucket | What it covers | Who sets it |
|---|---|---|
| State taxes | Doc stamps, intangible tax | State law |
| Recording | Clerk’s fees to record the mortgage | County |
| Mortgage insurance | Upfront premium, financed | FHA program |
| Appraisal | Value of the home | Third-party provider |
| Title charges | Lender’s policy, settlement | Title company |
| Lender charges | Origination and related items | Lender |
| Prepaids and escrows | Insurance and property tax reserves | Your insurer and the county |
This table gives you a map of who controls what.
What Cash in Hand Really Looks Like
Your net proceeds are the new loan minus the old payoff and every cost above. Because the 80% cap limits the loan, it limits how much cost the loan can absorb. A loan that barely clears the payoff leaves little cash after the taxes and the financed premium.
Doc stamps and intangible tax are one-time costs. They only keep costing you if you finance them, because then they sit inside a larger balance you pay on monthly. A larger balance also means a larger annual mortgage insurance base.
Picture a homeowner whose current loan sits near 60% of value. A new 80% loan gives them room to take cash. Another homeowner already near 75% would clear far less after costs. Run your own numbers against your own appraisal.
Misconceptions to Drop
“Miami-Dade doc stamps are higher on my refinance.” The county variation is a deed matter. The note and intangible taxes are the same statewide, according to the sources above.
“My lender charges doc stamps.” They are state taxes. The lender collects them for the state. The Department of Revenue says the lender owes the intangible tax and may pass it on.
“The cap protects me.” A cap on doc stamps exists for unsecured notes. It does not apply to a recorded mortgage, so the tax on a mortgage grows with the loan.
“A refinance has no deed, so no taxes.” The note and mortgage are still taxed.
“I’ll get credit for taxes I paid on my old mortgage.” A Florida law-firm blog reports that intangible tax paid on the old mortgage is not credited against the new one. Ask your closing agent.
“FHA allows 85% on a cash-out.” That ended with HUD’s change to 80%.
Reading Your Disclosures
This is the one rules section. The CFPB’s page on government recording charges says these are fees from state and local agencies for recording your loan documents. They appear in Section E, page 2, of the Loan Estimate and the Closing Disclosure.
The CFPB also says these charges, plus certain other settlement services, generally cannot rise more than 10 percent in total at closing. Use this checklist:
- Find Section E on both forms and compare the totals.
- Ask the closing agent to explain each tax line.
- Confirm whether the financed premium is inside the loan amount the taxes are based on.
- Ask whether the taxes are paid in cash or rolled in.
Tax treatment can depend on your situation; borrowers should speak with a qualified tax professional before relying on any deduction or credit.
Cash-Out vs. a Second Loan
A home equity line is taxed on the full line once recorded, not on what you draw. A cash-out refinance is a fully funded loan, so there are no future draws. The first-loan taxes apply to the whole new balance. A second loan taxes only its own amount, but you keep the existing mortgage as is.
The comparison comes down to the tax base and what happens to the loan you already have. If your current loan is one you want to keep, a second loan might avoid taxing the whole balance. If it is not, the single new loan may be simpler. Compare the total of all costs against the cash you will actually receive.
Frequently Asked Questions
Does Miami-Dade charge extra doc stamps on an FHA cash-out refinance?
Generally, no. The county variation is documented for deeds, and a refinance has no sale deed. The note and intangible taxes are statewide. Have a Florida title or closing agent confirm for your property type, especially a condo.
Can the taxes be rolled into the FHA loan?
Often a lender can fold closing costs into the new balance, within the 80% cap and subject to lender guidelines. Doing so raises the tax base. Ask your closing agent how your lender treats it.
Who pays the taxes on a refinance?
The borrower usually pays at closing. The intangible tax legally belongs to the lender, which may pass it on. The Loan Estimate shows who is charged.
Do taxes change if I shop lenders?
No. The taxes are set by state law, so they match across lenders. Origination, appraisal and title charges are the pieces that vary.
Does an FHA cash-out work on a second home?
No. Cash-out is for an owner-occupied principal residence only.
Next Steps
If you are weighing a cash-out refinance against keeping the loan you have, Lendmire can help you compare the programs and the equity each one reaches. Lendmire is a mortgage broker, so lenders review and approve every file.
Florida shows how local this is. The loan rules come from FHA, but the closing bill depends on where your home sits.
For your own numbers, request a scenario review with Lendmire.
About Lendmire
As a mortgage broker (NMLS# 2371349), Lendmire helps homeowners and home buyers in 16 states with FHA, VA, conventional and jumbo purchase and refinance loans arranged through wholesale lenders. Lendmire is never the lender; program terms are set by the lender and the agency guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
For the program’s current guidelines, see FHA loan programs.
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References
1. HUD Mortgagee Letter 2019-11
2. Florida Department of Revenue: Documentary Stamp Tax
3. Florida Department of Revenue: Nonrecurring Intangible Tax
4. HUD FHA Answers: FHA Mortgage Insurance Premium structure
5. CFPB: What are government recording charges for a mortgage?
This article is part of Lendmire’s FHA Loan series — every loan program’s qualification details, guidelines, and scenarios live on the loan options page.
Related reading: How Much an FHA Cash-Out Costs If You Plan an MIP Exit · Can You Get an FHA Cash-Out When Conventional Is Too Costly? · Can a Conventional or FHA Borrower Do a VA Cash-Out in Year One?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Disclosures. The information presented in this article is general market commentary, not financial, legal, or tax advice. Lendmire is a mortgage brokerage (NMLS# 2371349) — not a direct lender or depository institution — and loan placement is subject to lender underwriting. Nothing in this content represents a commitment to lend. Loan terms, pricing, and program availability vary based on borrower qualifications, property characteristics, and state of subject property, and are subject to change at any time. Lendmire complies with Equal Housing Opportunity requirements. Consumer access: nmlsconsumeraccess.org.