Refinance Calculator for California

Refinancing in California

Whether refinancing makes sense depends on how much equity you've built, the rate differential, and how long you plan to stay. In California, where the median home value is $785,000, many homeowners have accumulated significant equity since 2020. California remains the most expensive state for housing. After a 2022-2023 correction of 10-15%, prices have recovered in most metros. San Jose, San Francisco, and Orange County lead nationally.

Conforming Loan Limits in California

For a rate-and-term refinance to qualify as a conventional loan in California, the balance must stay under $1,089,300. Most California coastal counties qualify for high-cost area limits of up to $1,089,300. San Francisco, Santa Cruz, and Marin counties are at the national ceiling. Refinancing above this requires a jumbo product.

Closing Costs on a California Refinance

Expect to pay $7,200 in closing costs on a refinance in California. California charges a documentary transfer tax of $1.10/$1,000 of value statewide, with most counties and cities adding their own transfer taxes. Los Angeles city charges an additional 0.45%, and properties over $5M face higher rates. Your break-even point is when your monthly interest savings equal these upfront costs.

Property Tax Considerations

Refinancing doesn't affect your property tax assessment in California — the effective rate stays at 0.71% regardless. Long-term California homeowners often pay taxes on valuations 30-50% below market, while recent buyers pay on current market value. A $2M home bought in 1985 may carry a $6,000/year tax bill while a neighbor who bought in 2023 pays $22,000+.

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