California Refinance Calculator
Refinancing typically makes sense when you can lower your rate by 0.75% or more and plan to stay in the home beyond your break-even point (usually 2-4 years). Use this calculator to compare your current mortgage to potential refinance options.
Refinance Details
Your Estimated Savings
How The Refinance Calculator Works
Information You'll Need:
- Current loan balance
- Current interest rate
- Remaining loan term
- New interest rate (check today's rates)
- New loan term
- Estimated closing costs (2-5% of loan amount)
What You'll Learn:
- New monthly payment amount
- Monthly savings achieved
- Total interest savings over loan life
- Break-even point (months to recoup costs)
- Whether refinancing makes financial sense
California Refinance Closing Costs
| Cost Item | Typical Range | $600K Loan Example |
|---|---|---|
| Loan Origination | 0.5-1.0% | $3,000-6,000 |
| Appraisal | $500-800 | $650 |
| Title Insurance | $1,000-2,500 | $1,800 |
| Escrow Fees | $1,500-3,000 | $2,200 |
| Credit Report | $50-100 | $75 |
| Recording Fees | $100-300 | $200 |
| Prepaid Interest & Escrows | Varies | $2,800 |
| TOTAL | 2-5% | ~$12,000 - $16,000 |
California-Specific Notes:
- No state transfer taxes on refinances.
- Title insurance and escrow fees are typically higher than national averages.
- Some lenders offer "no-closing-cost" refinances, which roll the fees into a slightly higher interest rate.
When to Refinance Your California Mortgage
Rate-and-Term Refinance
✓ Excellent reasons:
- Current rate is 0.75%+ higher than available rates
- You can eliminate PMI by reaching 20% equity
- You want to switch from an ARM to a fixed rate
- You can shorten the term from 30 to 15 years
✗ Poor reasons:
- Saving only $50-$100/month with a long break-even
- Planning to move within 2-3 years
- Your home's value has decreased significantly
Cash-Out Refinance
✓ Good uses of equity:
- Major home improvements (kitchen, bath, ADU)
- Debt consolidation to a lower interest rate
- Funding college tuition
- Strategic investment opportunities
✗ Poor uses of equity:
- Lifestyle spending (vacations, cars)
- High-risk investments or speculation
- Your income is unstable
California Refinance Requirements
Credit Score
- Conventional: 620+ (680+ for best rates)
- FHA: 580+
- VA: 620+ (lender specific)
- Jumbo: 700-720+
Equity
- Rate/Term: 5% minimum equity
- Cash-Out: 20% minimum remaining equity (80% LTV)
- VA Cash-Out: Up to 100% LTV
- FHA Cash-Out: Up to 80% LTV
Income Docs
- 2 years of W-2s/tax returns
- 30 days of pay stubs
- 2 months of bank statements
Refinance Timeline & HELOC Comparison
Typical Refinance Timeline (30-45 Days)
- Week 1: Application, documentation submission, rate lock.
- Week 2-3: Appraisal, title search, underwriting review.
- Week 3-4: Conditional approval, clear conditions.
- Week 4-5: Final approval, schedule closing, sign documents, loan funds.
Refinance vs. HELOC
Choose Refinance for: Lowering your primary rate, accessing a large lump sum, or payment certainty.
Choose HELOC for: Keeping a great existing rate, flexible access to funds, or smaller borrowing needs.
Compare to California HELOC →Refinance Frequently Asked Questions
How much can I save by refinancing in California?
A 1% rate reduction on a $600,000 loan can save approx. $3,600 annually. Savings depend on your rate drop and loan amount.
What credit score do I need to refinance in California?
Most lenders require 620+ for conventional, but 680+ gets better rates. FHA and VA loans are more flexible.
How long does a California refinance take?
Typically 30-45 days. Streamline refinances (FHA, VA) can be faster (2-3 weeks). Delays can occur from appraisal or documentation issues.
Should I refinance from a 30-year to a 15-year?
This saves substantial interest but increases monthly payments. It's a great option if you can comfortably afford the higher payment and want to build equity faster.
What's a no-closing-cost refinance?
This option rolls the fees into a higher interest rate (usually 0.25-0.5% more). It makes sense for shorter timeframes, as your break-even point is immediate.
How soon can I refinance after buying?
Most lenders require at least 6-12 months of payment history. FHA and VA loans have specific seasoning requirements, often around 210 days.