California Refinance Rates & Programs 2026

I've been a licensed mortgage broker in California for 15 years, based right here in Simi Valley. I've helped thousands of California homeowners refinance, and I'll tell you straight: this state has some unique advantages—and some expensive quirks—that you need to know about before you refinance.

Current California Refinance Rates (March 2026)

As of March 19, 2026, here's what California homeowners are seeing:

| Loan Type | Average Rate | APR | |-----------|--------------|-----| | 30-Year Fixed Refi | 6.34% - 6.44% | 6.38% - 6.48% | | 15-Year Fixed Refi | 5.43% - 5.65% | 5.47% - 5.69% | | 7/1 ARM Refi | 5.75% - 6.00% | 6.10% - 6.35% | | Jumbo 30-Year Refi | 6.50% - 6.75% | 6.55% - 6.80% |

Important: These are averages. Your actual rate depends on credit score, loan-to-value ratio (LTV), property type, and location. California has dozens of high-cost counties where jumbo limits are higher, which affects your rate.

Use our refinance calculator to see what you'd actually pay based on your specific situation.

California-Specific Refinance Programs

CalHFA (California Housing Finance Agency)

Here's something most homeowners don't realize: if you used CalHFA down payment assistance when you bought your home, you'll need to pay it back if you refinance with a different lender.

CalHFA subordinate loans (those "silent second" mortgages with no monthly payment) must be paid in full when you refinance your first mortgage. The only exception is if you're refinancing through your current servicer's loss mitigation program and they agree to resubordinate the loan.

Broker's Tip: If you have a CalHFA subordinate loan, check your current equity first. If you don't have enough equity to pay off both loans, you may need to wait or explore a streamline refinance through your existing servicer.

Conventional High-Balance Loans

California has multiple high-cost counties with conforming loan limits above the national baseline of $832,750. In Los Angeles, San Francisco, Orange County, San Diego, and other expensive markets, the 2026 conforming limit goes up to $1,249,125.

This matters because:

• Loans up to $1,249,125 qualify for conventional rates (better pricing than true jumbos)
• You avoid the stricter requirements of jumbo loans
• You may qualify for better programs and lower rates

Below are the 2026 limits for major California metros:

| County/Area | 2026 Conforming Limit | |-------------|----------------------| | Los Angeles County | $1,249,125 | | San Francisco County | $1,249,125 | | Orange County | $1,249,125 | | San Diego County | $1,249,125 | | Ventura County (Simi Valley) | $1,094,625 | | Santa Clara County | $1,249,125 | | San Mateo County | $1,249,125 | | Marin County | $1,249,125 | | Most other counties | $832,750 |

FHA Streamline Refinance

If you currently have an FHA loan, the FHA Streamline Refinance is often the fastest and cheapest way to lower your rate. No appraisal required, minimal documentation, and you can refinance even if you're underwater (owe more than your home is worth).

In high-cost California counties, FHA loan limits range from $541,287 to $1,249,125 in 2026.

VA Interest Rate Reduction Refinance Loan (IRRRL)

California has one of the largest veteran populations in the country. If you currently have a VA loan, the VA IRRRL (also called a "VA streamline") lets you refinance with:

• No appraisal
• No income verification in most cases
• No out-of-pocket costs (you can roll closing costs into the loan)
• VA funding fee of just 0.5% (vs. 2.15% for a VA purchase)

Learn more about cash-out refinancing if you want to pull equity instead.

California Refinance Closing Costs

Here's what you'll actually pay to close a refinance in California (based on a $500,000 loan):

| Cost Item | Typical Amount | |-----------|---------------| | Lender origination fee | $0 - $2,500 | | Appraisal | $500 - $800 | | Credit report | $25 - $50 | | Title insurance (refi rate) | $800 - $1,500 | | Escrow/settlement fee | $400 - $800 | | Recording fees | $75 - $150 | | Notary | $75 - $150 | | County transfer tax | $0 (not charged on refis) | | Total typical closing costs | $4,000 - $8,000 |

California has no state mortgage tax or documentary stamp tax on refinances. That's a huge advantage compared to states like Florida or New York.

However, California does charge a county transfer tax when you buy a home. Good news: this doesn't apply to refinances since you're not transferring ownership.

Use our break-even calculator to figure out how long it takes to recoup these closing costs through your monthly savings.

Prop 13 and Refinancing: Will Your Property Taxes Go Up?

No. This is one of the biggest misconceptions I hear.

Under California Proposition 13, your property tax assessed value is based on your purchase price (or last reassessment), plus a maximum 2% annual increase. Refinancing does not trigger a reassessment because there's no change in ownership.

You can refinance 10 times and your property tax won't budge. The only events that trigger reassessment are:

• Selling the property
• Transferring ownership (gifting, inheritance with exceptions)
• New construction or major additions

Broker's Tip: If your property value has dropped since you bought, you can request a reassessment to lower your property taxes. Refinancing itself won't trigger this, but it's worth exploring separately.

Jumbo Loans in California

Anything above the conforming limit in your county is considered a jumbo loan. In most California counties with the $1,249,125 limit, you hit jumbo territory at $1,249,126 and up.

Jumbo refinance requirements in California (2026):

• Minimum credit score: 700+ (most lenders want 720+)
• Maximum LTV: 80% - 85% (some lenders go to 90% for exceptionally strong borrowers)
• Debt-to-income ratio: 43% or lower (some portfolio lenders allow 45%)
• Cash reserves: 6-12 months PITI required
• Jumbo rates: Typically 0.125% - 0.50% higher than conforming

If you're close to the conforming limit, it may be worth waiting to build equity or making a principal payment to drop below the jumbo threshold before refinancing.

California Metro Market Conditions (2026)

Los Angeles / Orange County

• Median home price: $875,000 - $950,000
• Hot refinance market due to rate drops in early 2026
• High jumbo loan volume
• Average closing time: 30-40 days

San Francisco / Bay Area

• Median home price: $1,150,000 - $1,400,000
• Majority of refinances are high-balance conforming or jumbo
• Tighter appraisal standards due to recent price softening
• Co-op/condo warrantability reviews common

San Diego

• Median home price: $825,000 - $900,000
• Strong military population using VA IRRRL
• Coastal properties often hit jumbo thresholds
• Average closing time: 30-35 days

Sacramento / Central Valley

• Median home price: $475,000 - $550,000
• Mostly conforming loans
• Faster appraisals, quicker closes
• Popular for cash-out refis due to strong equity growth

Simi Valley / Ventura County (My Market)

• Median home price: $725,000 - $800,000
• Conforming limit: $1,094,625
• Mix of conventional, FHA, and VA refinances
• Low inventory keeping values stable

When Should California Homeowners Refinance?

Run the numbers if:

• Rates are 0.75% or more below your current rate — The old "1% rule" is dead. If you can save 0.75%, refinancing often makes sense, especially if you plan to stay in the home 3+ years.
• You want to switch from ARM to fixed — If you have a 5/1 or 7/1 ARM approaching adjustment, locking in a fixed rate around 6.3% beats the risk of future rate increases.
• You're paying PMI and have 20%+ equity — California home values have climbed. If you bought with less than 20% down and now have 20% equity, refinancing lets you drop PMI and save $100-$300/month.
• You want to cash out equity — California homeowners are sitting on record equity. Cash-out refinancing lets you pull equity for home improvements, debt consolidation, or investment properties. See our cash-out refinance guide for details.

Broker's Tip: Don't refinance just because rates dropped a little. Factor in closing costs, how long you plan to stay in the home, and whether you're resetting your loan term. Use our refinance calculator to see the real numbers.

How to Get the Best Refinance Rate in California

Here's what actually moves your rate:

1. Credit score 740+ — This gets you the best pricing. Even jumping from 720 to 740 can save 0.125% - 0.25% on your rate.

2. LTV under 80% — The more equity you have, the better your rate. If you're at 75% LTV vs. 85% LTV, expect a 0.25% - 0.375% rate difference.

3. Full documentation — "No-doc" or "bank statement" loans exist for self-employed borrowers, but rates are 0.5% - 1.5% higher. If you can document your income traditionally, do it.

4. Shop multiple lenders — I'm a broker, so I'm biased, but mortgage brokers can shop 20+ lenders vs. a single bank. Rates vary by 0.25% - 0.50% between lenders on the same day for the same borrower.

5. Lock strategically — Rates are volatile in 2026. If you see a rate you like, lock it. Most locks are 30-45 days, and float-down options exist if rates drop after you lock.

California Refinance FAQ

1. Do I have to pay off my HELOC when I refinance in California?

Not necessarily. You can keep your HELOC and refinance just your first mortgage. However, the HELOC lender may need to sign a subordination agreement (agreeing to stay in second position). Some HELOC lenders charge $150-$500 for subordination. If they refuse, you'll need to pay off the HELOC as part of the refinance.

2. Can I refinance if I'm self-employed in California?

Yes. You'll need to provide 2 years of tax returns (personal and business), year-to-date profit & loss, and business bank statements. California has a large self-employed population, and most lenders are comfortable with it. If your tax returns show low income due to write-offs, ask about bank statement loans—rates are higher, but qualification is based on deposits, not tax returns.

3. How long does a California refinance take?

30-45 days on average. Factors that speed it up:

• Responding quickly to document requests
• Clean title (no liens, judgments, or easement issues)
• Smooth appraisal (comparable sales available, property in good condition)
• Simple loan (no jumbo complications, DTI under 43%)

Factors that slow it down:

• Self-employment income
• Recent credit issues
• Appraisal challenges in rural areas or unique properties
• Title issues (old liens, divorce, estate situations)

4. Will refinancing hurt my credit score?

Temporarily. The hard inquiry and new account will ding your score 5-15 points short-term. But rate shopping is protected—if you apply with multiple lenders within a 14-45 day window (depending on the credit model), it counts as a single inquiry.

Once the refinance closes and you start making on-time payments, your score typically recovers within 3-6 months. If you're planning to buy a car or apply for other credit soon, wait until after the refinance closes.

5. Can I refinance a rental property in California?

Yes, but expect:

• Higher rates (0.375% - 0.75% above primary residence rates)
• Larger down payment requirements (75% LTV max for most lenders)
• Rental income documentation (lease agreements, tax returns showing rental income)
• 6-12 months cash reserves

I own rental property in Spokane, Washington, and the process is similar nationwide—just slightly more expensive than a primary residence refi.

6. What if my home value dropped and I'm underwater?

If you owe more than your home is worth, your options are:

• FHA Streamline Refinance (if you currently have FHA) — No appraisal, can refinance even underwater
• VA IRRRL (if you currently have VA) — Same deal, no appraisal required
• HARP replacement programs — Some lenders offer "high LTV refinance" programs for underwater Fannie/Freddie loans (up to 105% LTV in some cases)

California home values have been strong, so underwater situations are rare in 2026. But if you bought at the peak or in a declining market, these options exist.

7. Should I refinance from a 30-year to a 15-year mortgage?

It depends on your goals:

Refinance to 15-year if:

• You can afford the higher payment (typically 40%-50% more per month)
• You want to own your home outright faster
• You're 10+ years into your current 30-year mortgage
• You can handle the payment even if income drops

Stick with 30-year if:

• You want flexibility (you can always pay extra principal without being locked into a higher payment)
• You're early in your mortgage (years 1-5)
• You want to free up cash flow for investments, kids' college, etc.

The 15-year rate is about 0.80% - 1.00% lower than the 30-year right now (5.43% vs. 6.34%), so you save significantly on interest. But make sure the higher payment fits your budget.

Next Steps: Get a California Refinance Quote

Here's my process for California homeowners:

1. Check your current rate and loan balance — Grab your latest mortgage statement.

2. Run the numbers — Use our refinance calculator to see potential savings, then use the break-even calculator to see how long it takes to recoup closing costs.

3. Check your credit score — If it's under 740, see if you can improve it before applying. Even small bumps (720 to 740) make a difference.

4. Get quotes from multiple lenders — Rates vary. Compare lender fees, rates, and closing costs.

5. Lock your rate — Once you find the right deal, lock it. Rates change daily.

Want a custom quote based on your California property? Get your personalized refinance quote here — I'll pull current rates for your county, credit profile, and loan amount. No obligation, and you'll see exactly what you'd pay.

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About the Author: Bill McCoy is a licensed California mortgage broker (DRE #01234567) with 15 years of experience helping homeowners refinance. Based in Simi Valley, he's closed thousands of California refinances across all 58 counties. This guide reflects current 2026 market conditions and California-specific regulations.