Refinance Calculator in California
Should you refinance your California mortgage? The current average rate is 6.35% and closing costs average 1.1% of the loan balance (about $10,065 on a $915K home). Calculate your break-even point below. Formula shown, sources cited — no account required.
ℹCalifornia's median home price of $915K means even a 0.5% rate reduction saves significant money over the loan term. Each monthly payment reduction accelerates your break-even past the $10,065 in closing costs.
When Does Refinancing Make Sense in California?
Refinancing in California involves paying closing costs of approximately 1.1% of your loan balance to obtain a lower interest rate. The general rule: if you can lower your rate by at least 0.75–1%, refinancing is worth exploring. With California's current average rate of 6.35%, the savings depend heavily on how far rates drop from your existing loan.
The break-even point is calculated by dividing total closing costs by monthly savings. For example, if refinancing saves you $200/month and costs $10,065, you break even in 50 months (4.2 years). If you plan to stay in yourCalifornia home longer than that, refinancing is likely beneficial.
Questions You Might Ask — Refinance Calculator in California
What is the average refinance rate in California?
The average 30-year fixed mortgage rate in California is currently approximately 6.35%. Refinance rates are typically 0.1–0.2% higher than purchase rates. Rates vary by credit score, loan-to-value ratio, and lender — shopping at least 3 lenders typically saves $1,000+ over the loan term.
What are refinance closing costs in California?
Average closing costs to refinance in California are approximately 1.1% of the loan balance. On an $732K loan (80% of the $915K median home price), that's roughly $8,052 in upfront costs. These include lender fees, title insurance, escrow, and prepaid interest.
When does refinancing make sense in California?
Refinancing makes sense when you can lower your rate by at least 0.5–1% and plan to stay in your California home long enough to break even. With 1.1% closing costs, saving $200/month means breaking even in 50 months (4.2 years). Saving $300/month breaks even in 34 months.
Can I do a cash-out refinance in California?
Yes, cash-out refinancing is available in California. Most lenders allow you to access up to 80% of your home's equity. With the median home price of $915K, a homeowner who has built equity over several years could access substantial cash for home improvements, debt consolidation, or other needs — while potentially lowering their rate.
How does California's property tax rate affect refinancing?
California's property tax rate of 0.75% means your escrow includes approximately $572/month in property taxes on the median home. This is part of your total PITI payment and factors into the break-even analysis — a lower interest payment saves money, but your total monthly obligation also includes taxes and insurance that don't change with a refinance.
Data Sources & Methodology
Mortgage rates from Freddie Mac PMMS. Closing cost estimates from ClosingCorp and CFPB national survey data. Median home prices from the National Association of Realtors (NAR). Property tax rates from ATTOM Data Solutions. Last updated 2026.