Refinance FAQ

Consider refinancing when rates drop 0.5-1% below your current rate, when your home value has increased significantly, when your credit has improved, or when you want to eliminate PMI. California's appreciating home values often create good refinancing opportunities.

California refinance rates vary daily but are typically within 0.125% of purchase rates. 30-year fixed rates for well-qualified borrowers are generally in the 6-7% range. Shop multiple lenders as rates can vary significantly between lenders.

California refinance costs typically range from 2-5% of the loan amount, including loan fees, title insurance, appraisal, and recording fees. For a $600,000 loan, expect $12,000-$30,000 in costs. No-cost refinances are available but with higher rates.

California refinances typically take 30-45 days from application to closing. Rate locks usually last 30-60 days. Cash-out refinances may take longer due to additional documentation requirements. Streamline refinances (VA IRRRL, FHA Streamline) can close faster.

Yes, California allows cash-out refinances up to 80% loan-to-value for conventional loans, 90% for VA loans, and 85% for FHA loans. You can use the cash for home improvements, debt consolidation, or other purposes. Cash-out rates are typically 0.125-0.25% higher.

If you have an ARM that's about to adjust upward, refinancing to a fixed rate can provide payment stability. Compare your current ARM rate and upcoming adjustments to current fixed rates. California's volatile rate environment often makes fixed rates attractive for long-term stability.