How to Refinance Your Mortgage in California

Common questions

When is refinancing actually worth it?

When the savings outrun the cost. The old rule was a full point lower, but it really comes down to your break-even — how many months of lower payments it takes to recover the closing costs. If you'll stay in the home past that point, it usually pays. We run your exact numbers before you commit to anything.

How much does it cost to refinance?

Closing costs on a refinance typically run about 2–5% of the loan amount — lender fees, title, escrow, and an appraisal. Some of it can be rolled into the loan so you bring little or nothing to the table, but that affects your break-even, so we'll show you both ways.

What's the difference between a rate-and-term and a cash-out refinance?

A rate-and-term refinance swaps your current loan for a new one with a better rate or a different length, and you don't take any cash. A cash-out refinance replaces your loan with a larger one and gives you the difference as cash — useful for home improvements, paying off higher-interest debt, or other big expenses.

Will refinancing reset my loan back to 30 years?

Only if you choose a new 30-year term. You don't have to. If you're ten years into a 30-year loan, you can refinance into a 20- or 15-year term to keep your payoff date on track — sometimes with a lower rate and a similar payment. We'll show you the options side by side.

Can I refinance to drop mortgage insurance?

Often, yes. If your home has gained enough value that you now have 20% equity, refinancing out of an FHA loan into a conventional one can eliminate mortgage insurance entirely — which sometimes saves more than the rate change itself.