California Refinance Break-Even Calculator
Compare your current mortgage to a new one. Closing costs default to the California average.
Refinance Closing Costs in California
Typical out-of-pocket costs to refinance in California. Some lenders offer no-closing-cost refis in exchange for a higher rate.
What a median California home costs at today's rate
Zillow Home Value Index for California, August 2026, combined with the Freddie Mac 30-year rate of 7.18% (November 5, 2026), California's 0.71% effective property tax rate, and a $1,600/yr average insurance premium.
Should You Refinance Your California Mortgage?
The classic rule of thumb is to refinance when you can lower your rate by at least 0.75-1.0 percentage points, but the real test is the break-even period: how long it takes for monthly savings to recoup the closing costs. In California, with average closing costs of $5,500, you'll typically need to save $100-200/month to break even within 2-4 years.
The break-even formula
Break-even months = Closing costs ÷ Monthly savings. If your refi saves you $250/month and costs $5,500, that's 22 months (1.8 years) to break even. If you'll be in the home longer than that, the refi is worth it.
Cash-out vs rate-and-term refi
A rate-and-term refi just changes your interest rate and/or loan length. A cash-out refi gives you a check from your equity but typically carries a higher rate (0.25-0.5% premium). For California homeowners with significant equity, a cash-out refi can fund renovations or pay off high-interest debt — but only do it if the math beats other borrowing options.
When to skip refinancing
Don't refi if you plan to sell or move within your break-even window, if your credit has dropped since the original loan, or if you'd be resetting a 30-year clock when you're already 15+ years in (you'd pay more total interest). Also skip if your rate savings are under 0.5% — closing costs eat the benefit.
Compare lenders for the best California refi rate
Refinance rate quotes can vary by 0.25-0.5 percentage points between lenders for the same borrower profile. Get at least 3 quotes — online marketplaces let you compare prequalified offers without affecting your credit score.