CALIFORNIA MORTGAGE REFINANCE RATES TODAY
Current mortgage refinance rates in
California.
Current mortgage refinance rates in
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Compare mortgage refinance rates in California.
Key Points
• Mortgage refinance rates in California are influenced by a variety of economic factors, including the bond market and housing inventory.
• Over recent years, California refinance rates have seen a significant shift, climbing from 3.15% in 2021 to 7.00% in 2023, impacting homeowners’ budgets.
• Refinancing can potentially lower your monthly payments, give you access to home equity, or help you switch to a fixed-rate loan.
• Building your credit score, balancing your debt-to-income ratio, and shopping around for offers from multiple lenders are key to snagging the most favorable mortgage refinance rates in California.
• A 1% drop in your mortgage rate could translate to substantial monthly savings, to the tune of $2,000 a year on a $300,000 loan.
Introduction to Mortgage Refinance Rates
Mortgage refinancing is the process of replacing your existing mortgage with a new one. The new mortgage will have different terms, such as a new interest rate, term length, and monthly payment amount. People refinance their mortgage for a variety of reasons, including to lower their monthly payments, access their home equity, or change their loan type. Understanding how current mortgage refinance rates in California are set and how to get the best rate possible is key to making the most of your refinance. This guide will help you understand the ins and outs of the refinance process and make informed decisions about your property.
💡 Quick Tip: Some lenders offer a so-called no-closing-cost refinance. However, that usually means either rolling the closing costs into the new mortgage principal or exchanging them for a higher interest rate.
Where Do Mortgage Refi Interest Rates Come From?
In the past, the 10-year U.S. Treasury Note has served as the most dependable predictor of mortgage rates. When the yield on the Treasury Note increases, current mortgage rates generally rise as well. The housing market also influences rates; if there are too many homes available, lenders may reduce their rates to attract more buyers. The overall economic climate is another key factor. Strong economic performance and job growth usually result in higher interest rates, whereas a recession often leads to lower rates.
While none of this will be on the test, having a loose understanding of what influences interest rates can give you a sense of when rates might rise or fall, allowing you to time your mortgage refinance for maximum savings.
Recommended: How to Refinance a Mortgage
How Interest Rates Affect Home Affordability
Interest rates play an important role in the affordability of your refinance. Your monthly payment hinges on your loan amount, repayment term, and the interest rate you secure. For example, a $200,000 home loan with a 6.00% interest rate and a 30-year term translates to a monthly payment of $1,199. But the same loan with an 8.00% interest rate spikes the monthly payment to $1,467. Over the loan’s life, the lower interest rate could keep nearly $100,000 in your pocket. Even small shifts in current mortgage refinance rates in California can lead to significant long-term savings.
Trends in California Mortgage Interest Rates
The rise and fall of mortgage rates can be quite the rollercoaster. In 2021, the average 30-year fixed mortgage rate was just 3.15%. Fast-forward to 2023, and it had soared to 7.00%. Last year brought the expectation of a dip in rates. But in early 2025, experts are predicting we’ll see elevated rates for longer. But don’t let that deter you. If you’re considering a mortgage refinance, it might still be a smart move.
Historical U.S. Mortgage Interest Rates
The U.S. mortgage interest rate environment can have a huge impact on first-time homebuyers. In the early 2000s, rates were at a level that made homeownership more attainable. That is less true today, even though rates are near the historical average. Below you can see the average fixed mortgage rate from the 1970s to present.
Historical Interest Rates in California
California refinance rates typically follow national trends, but they can be slightly higher or lower depending on the region. In the past, California has seen some of the lowest refinance rates in the country. When national rates are low, California rates are even lower, which is great for homeowners. On the other hand, when national rates are high, California rates are even higher. Understanding the historical trends in California refinance rates can help you anticipate future rate movements and make a more informed refinancing decision.
| Year | California Rate | National Rate |
|---|---|---|
| 2000 | 7.18 | 8.14 |
| 2001 | 6.78 | 7.03 |
| 2002 | 6.20 | 6.62 |
| 2003 | 5.54 | 5.83 |
| 2004 | 5.48 | 5.95 |
| 2005 | 5.65 | 6.00 |
| 2006 | 6.49 | 6.60 |
| 2007 | 6.38 | 6.44 |
| 2008 | 6.13 | 6.09 |
| 2009 | 5.08 | 5.06 |
| 2010 | 4.83 | 4.84 |
| 2011 | 4.54 | 4.66 |
| 2012 | 3.69 | 3.74 |
| 2013 | 3.85 | 3.92 |
| 2014 | 4.04 | 4.24 |
| 2015 | 3.80 | 3.91 |
| 2016 | 3.63 | 3.72 |
| 2017 | 3.94 | 4.03 |
| 2018 | 4.38 | 4.57 |
Why Refinance Your Mortgage?
Refinancing your mortgage can be a smart move. If you can secure a lower interest rate than what you’re currently paying, it could translate to significant savings. Not only could your monthly payments decrease, but you might also pay less in total interest over the life of the loan.
Before you refinance, it’s wise to ensure you have at least 20% equity in your home, especially if you’re considering cashing out some equity. And if you’re currently on an adjustable-rate mortgage and crave the stability of a fixed-rate loan, refinancing can make that happen. California refinance rates are not one-size-fits-all, so shopping around is key to finding the best deal.
Common Reasons to Refinance a Mortgage
Here are common reasons homeowners refinance:
• Lower your interest rate. You may secure a lower rate due to market conditions or an improved credit score.
• Change the repayment term. Shorten it to pay less in interest, or lengthen it to lower your monthly payment
• Cash out home equity. You’ll want at least 20% home equity before considering refinancing.
• Switch to a fixed-rate loan.
• Eliminate mortgage insurance. With an FHA loan, refinancing is the only way to drop the required insurance.
• Consolidate debt.
Understanding these reasons can help you decide if refinancing is right for you. Current California refinance rates play a significant role in this decision.
Recommended: How Soon Can You Refinance a Mortgage?
How to Compare Mortgage Refi Interest Rates
To ensure you’re getting the best deal, you’ll need to shop around. Reach out to multiple lenders and get prequalified to suss out your borrowing power and the rates you’re eligible for. Keep an eye out for the annual percentage rate (APR), which bundles up interest, fees, and discount points. And remember, the lowest rate might not always mean the biggest savings.
Compare California Interest Rates by Mortgage Refi Type
Mortgage refinance rates in California vary by type. Each offers unique features, from fixed vs. variable rates to no closing costs. Knowing your options can help you select the best refi for your needs.
Conventional Refi
A conventional refi, also known as a rate-and-term refi, is your ticket to adjusting your interest rate and loan term. While these refis might not come with the rock-bottom rates of government-backed loans, they do offer a level of flexibility that could be just what you need to lower your interest rate or change your repayment term. If you’re a homeowner with a solid credit history and a good chunk of equity in your home, this could be your golden opportunity.
Cash-Out Refi
You can tap into your home’s equity by refinancing for a larger mortgage and pocketing the difference. A cash-out refinance is a great option for those big-ticket items like home improvements or getting rid of high-interest debt. Let’s say your home is valued at $500,000 and you still owe $300,000 on your mortgage. That leaves you with $200,000 in equity. Many lenders will let you borrow up to 80% of your home’s value, which could mean an additional $100,000 in your pocket after you pay off your existing mortgage.
FHA Refi
FHA loans, insured by the Federal Housing Administration, often come with lower interest rates, making them an attractive option for refinancing. If you already have an FHA loan, you can opt for an FHA Simple Refinance or an FHA Streamline Refinance, which typically have fewer requirements and can be processed more quickly. For those without an FHA loan, options include an FHA cash-out refinance or an FHA 203(k) refinance, which is designed to cover home renovations.
VA Refi
VA loans, backed by the Department of Veterans Affairs, are known for their low interest rates and favorable terms. To qualify for a VA refinance, known as an Interest Rate Reduction Refinance Loan (IRRRL), you must already have a VA loan. This type of refinance can help you secure a lower interest rate, reduce your monthly payments, and potentially eliminate private mortgage insurance.
15-Year Mortgage Refi
Opting for a 15-year mortgage can be a strategic financial move, helping you save money and own your home outright sooner. By refinancing a 30-year, $1 million loan at 7.50% to a 15-year term at 7.00%, you could slash your total interest payments by nearly $900,000. And with current California refinance rates for 15-year mortgages at attractive levels, this could be the perfect time to make the switch.
Adjustable-Rate Mortgage Refi
If you’re considering an adjustable-rate mortgage (ARM) refinance, you’re likely attracted to the initial lower interest rate compared to a fixed-rate mortgage. This can be a smart choice if you’re planning to relocate before the rate adjusts. For instance, if you currently have a 30-year fixed-rate mortgage but foresee a move within a few years, switching to an ARM could mean lower monthly payments. Just be aware that the rate has the potential to increase, which could lead to higher payments down the line.
Compare Mortgage Refi Interest Rates
To ensure you’re getting the best deal, it’s crucial to compare rates from multiple lenders. Look beyond the interest rate to the annual percentage rate (APR), which incorporates fees and any discount points. Calculate the total loan cost and your break-even point (that is, how long it takes for your savings to cancel out the cost of the refinance). Keep an eye on your credit score and home value — the higher they are, the more favorable rates you’ll be offered. And don’t forget to monitor local refinance rates for the best deal.
How to Get the Best Available Mortgage Refi Interest Rate
To secure the best mortgage refinance rates:
• Build your credit score by always being punctual with bill and loan payments.
• Lower your debt-to-income ratio to 36% or less.
• Compare offers from multiple lenders, including brick-and-mortar banks, credit unions, and online lenders.
• Think about buying mortgage discount points.
• Choose the shortest loan term you can afford.
Online Refinance Calculators
Online refinance calculators are a great way to get an idea of what your new monthly payment could be and to compare different refinance options. These calculators take into account your current loan balance, the new interest rate, and the repayment term to give you an estimate of how much you could save by refinancing. You can also see how long it would take to recoup your mortgage refinancing costs.
Run the numbers on your home loan.
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Home affordability calculator
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Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
The Takeaway
Mortgage refinancing is a powerful tool for managing your home loan and achieving financial goals. Whether you’re looking to lower your interest rate, access home equity, or shorten your loan term, understanding the different refinance options is key. By improving your credit score, lowering your debt-to-income ratio, and comparing offers from multiple lenders, you can secure the best available mortgage refinance rates in California. Just make sure to consider the long-term financial implications and that the savings justify the costs involved.
SoFi can help you save money when you refinance your mortgage. Plus, we make sure the process is as stress-free and transparent as possible. SoFi offers competitive fixed rates on a traditional mortgage refinance or cash-out refinance.
A new mortgage refinance could be a game changer for your finances.
FAQ
Can I lower my interest rate without refinancing?
If you have some extra cash on hand, you might want to consider a mortgage recast. With a recast, you make a large lump-sum payment toward your principal, and your lender “recasts” your remaining payments. This doesn’t change your interest rate, but it can lower your monthly payments and save you money on interest over the life of the loan. Plus, if interest rates go up in the future, you’ll be locked in at the lower rate.
Can you negotiate a lower interest rate?
You can always reach out to your lender and ask for a reduction in your interest rate. If you’ve been making on-time payments and have a good credit score, your lender may be willing to work with you. Lowering your interest rate could save you a lot of money over the life of your loan. Just be sure to carefully review any changes to your loan’s terms and conditions before you agree to them.
Can I get equity out of my house without refinancing?
You can access your home’s equity without going through the full refinancing process by using a home equity line of credit (HELOC). A HELOC gives you the flexibility to draw funds as needed, typically with lower closing costs than a cash-out refinance. You can use the equity in your home for things like home improvements, debt consolidation, or even paying for college.
Are there fees associated with mortgage recasting?
There are fees associated with a mortgage recast, although they tend to be considerably lower than refinancing fees. Typically, recasting fees can range from $100 to $300, depending on the lender. It’s wise to carefully research and compare fee structures offered by multiple lenders to ensure you secure the most favorable terms for your mortgage recast.
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*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article. Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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More refinance resources.
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How Much Does It Cost to Refinance a Mortgage?
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How to Refinance a Home Mortgage Loan
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7 Signs It’s Time for a Mortgage Refinance