Mortgage Refinance in California
California charges no transfer tax and no mortgage tax on a refinance, and refinancing does not reset your Proposition 13 assessment, so the escrow fee and the lender’s costs are most of the bill. We put every cost in the break-even before you commit, price every refinance type side by side, and are licensed statewide, in all 58 counties, closing through a California escrow company near you.
California DFPI Financing Law License 60DBO-117390. NMLS #1925352.
Refinancing in California, 2026
State taxes on the new loan
None
Proposition 13 base
Unchanged by a refinance
Cash-out
Up to 80% on FHA and most conventional (primary residence); VA higher
Streamlines
FHA Streamline and VA IRRRL, usually no appraisal
Closing
Escrow company near you, or a mobile notary
$0
California transfer or mortgage tax on a refinance
80%
Maximum cash-out loan-to-value, conventional and FHA
58
California counties, licensed statewide
4.9
Average of 5,300+ Google reviews
Why a California refinance costs less to close than most people expect.
A refinance pays for itself when the monthly saving has covered the closing costs, and California keeps those costs lower than many states because it taxes neither the new mortgage nor the refinance itself. The county documentary transfer tax applies to deeds, not deeds of trust, and the city transfer taxes work the same way. What remains is the lender’s charges, a new lender’s title policy, the escrow fee and an appraisal where one is needed. On a large coastal loan those are a small share of the balance, which is why the break-even on a California refinance is often short. We show you the month it pays for itself, and if it is further out than you plan to keep the home, we say so.
Three things make a California refinance worth running the numbers on. Price growth has given many owners who bought with FHA in Los Angeles, the Bay Area, San Diego and the Inland Empire the equity to refinance into a conventional loan and drop mortgage insurance for good. A cash-out refinance can fund an ADU, a seismic or fire-hardening retrofit, debt consolidation or the down payment on a rental, at a mortgage rate. And a homeowner with a VA or FHA loan has a streamline option that skips the appraisal and most of the paperwork.
This page covers refinancing in California. For the state as a whole, see our California page; for the refinance process itself, see the refinance hub and the cash-out hub. If you are buying rather than refinancing, buying in California is the page you want, and FHA in California and VA in California cover the streamlines in depth.
Three kinds of California refinance, and when each makes sense.
Lower the rate or the term, pull equity out, or replace an FHA or VA loan with less paperwork. None of them carries a state tax or touches your Proposition 13 base.
Lower payment
Rate-and-term refinance
Replace your loan with a lower rate, a shorter term or a fixed payment, with as little as 5 percent equity on a conventional loan, up to the county’s high-balance limit. The usual California reason is dropping FHA mortgage insurance once you reach 20 percent equity; on a coastal loan that premium is a large line in the payment.
Use equity
Cash-out refinance
Borrow up to 80 percent of the home’s value on a conventional or FHA loan, more on VA, and take the difference in cash. Common uses in California: an ADU, a seismic or fire-hardening retrofit that can also lower the insurance bill, debt consolidation, a down payment on a rental. With no state tax on the loan, the size of the cash-out does not change the closing costs much.
Less paperwork
FHA Streamline and VA IRRRL
If you already have an FHA or VA loan, the streamline replaces it at a lower rate with no appraisal and, in most cases, no income verification, as long as the new loan gives you a real benefit. On a California-sized loan the saving from a modest rate drop can be substantial, and the escrow fee is most of the cost.
What each refinance needs, and what California adds.
Program rules are federal; the last column is what changes in California. Your pro tells you which fits your file.
| Refinance | Equity, credit and appraisal | In California |
|---|---|---|
| Conventional rate-and-term | From 5% equity, 620 score, appraisal usually required; mortgage insurance you can ask to cancel at 80% of the original value | No state tax on the loan; high-balance limits up to $1,249,125 by county; the escrow fee and a new lender’s title policy are the main third-party costs |
| Conventional or FHA cash-out | Keep 20% equity on a primary residence (lower caps on second homes and rentals); 620 conventional, 580 FHA; appraisal required | Costs do not rise with the loan amount the way they do in states that tax the mortgage; a bound homeowners policy must be verified |
| FHA Streamline | Existing FHA loan at least 210 days old with six payments; no appraisal; net tangible benefit test | County FHA limits apply; part of the original upfront premium is refunded toward the new one |
| VA IRRRL | Existing VA loan; 0.5% funding fee; no appraisal or income verification in most cases | No loan limit with full entitlement; the funding fee is exempt if you receive VA disability compensation |
| VA cash-out | Up to 100% of value under VA rules, most lenders cap at 90%; full underwriting | Can replace a non-VA loan; the funding fee is 2.15% on first use or 3.3% after, exempt if you receive VA disability compensation |
California charges no documentary transfer tax on a refinance, because no deed is recorded, and no tax on the mortgage. Refinancing does not trigger a Proposition 13 reassessment; only a change of ownership or new construction does.
Your Proposition 13 base stays. Your mortgage insurance does not have to.
Refinancing is not a change of ownership, so the county does not reassess the home and your Proposition 13 base, with its 2 percent cap on annual increases, carries on untouched. For owners who bought years ago that base is worth thousands a year, and a refinance leaves it alone while changing the loan on top of it. The new lender sets up an escrow for the next instalment and the old escrow is refunded after payoff.
What a refinance can remove is FHA mortgage insurance. Many recent buyers in Los Angeles, the Bay Area, San Diego and the Inland Empire used FHA, and with less than 10 percent down the annual premium never goes away on its own. On a $700,000 loan that premium is roughly $320 a month. Once price growth has pushed you past 20 percent equity, a conventional refinance removes it for good, and the arithmetic has to beat only the escrow fee, the lender’s charges and a new lender’s title policy, not a state tax. You see the break-even month before anything is ordered.
The Bay to the border
Refinances closed through a California escrow company near you, or with a mobile notary at your kitchen table.
Six California details on a refinance file.
These decide what a California refinance costs and how it closes. All of them are on your Loan Estimate from the start.
01
No transfer tax, no mortgage tax
The county and city documentary transfer taxes apply to deeds. A refinance records a deed of trust, so neither applies, and California has no tax on the mortgage itself.
02
Escrow
An escrow company, independent in the south and usually part of the title company in the north, holds the payoff and closes the file. On a refinance the borrower pays the escrow fee.
03
Insurance re-verified
The lender needs a current bound homeowners policy. If a standard carrier has dropped you, the FAIR Plan plus a difference-in-conditions policy is accepted, and a cash-out that funds fire-hardening can sometimes lower the premium.
04
The appraisal
Required on most refinances except streamlines. Coastal values moved quickly in both directions, so a recent sale on your street can change what you qualify for.
05
Proposition 13 unchanged
A refinance is not a change of ownership, so your assessed value and its 2 percent annual cap carry on as before.
06
The right of rescission
When the refinance is secured by your principal residence, federal law gives you three business days to cancel, counted under federal rules from closing and delivery of the required notices, and the payoff funds once that period passes. A refinance with your current lender is covered only as to new money advanced, and a second home or rental has no waiting period. Escrow funds the payoff once that period ends.
When does a California refinance pay for itself?
Enter your current loan and the new rate. Add the escrow fee and the lender and title charges, with no state tax to include, and the calculator shows the break-even month.
The U.S. mortgage market right now.
National average rates from the Federal Reserve Bank of St. Louis FRED database: the Freddie Mac survey for conventional and the Optimal Blue indices for FHA and VA, shown as third-party market benchmarks, not MortgagePros pricing. Your refinance rate and APR depend on your credit, equity, loan type and the day you lock.
Conventional 30-year fixed, U.S. average
7.40%
FHA 30-year fixed, U.S. average
7.18%
VA 30-year fixed, U.S. average
7.09%
Sources: Freddie Mac Primary Mortgage Market Survey (conventional, 30-year national average, week of Oct 8, 2026) and Optimal Blue Mortgage Market Indices (FHA and VA, 30-year national averages as of Oct 8, 2026), distributed through FRED, Federal Reserve Bank of St. Louis; the figures and dates refresh automatically from the source. These are third-party market benchmarks, not MortgagePros rates and not an offer of credit. Your rate and APR depend on your credit, loan type, property and lock date.
How a California refinance works with us.
Four steps, one licensed pro, and a closing through a California escrow office near you.
1
The break-even first
Your current loan, the new rate and every closing cost, including the escrow fee, in one estimate with the month the refinance pays for itself.
2
The right refinance, priced side by side
Rate-and-term, cash-out, FHA Streamline or VA IRRRL compared for your file, with the county’s high-balance limit checked.
3
Appraisal and insurance
Appraisal ordered early where one is needed, the insurance policy verified, and the title work started as soon as the application is in.
4
Close through escrow
Signing at a California escrow office near you or with a mobile notary; the payoff funds after the three-business-day cancellation period that applies to a principal residence. The costs on the statement match the estimate.
Ready to see your California break-even?
A California-licensed pro shows you the new payment, every cost including the escrow fee, and the month the refinance pays for itself. Free, and it starts without a hard credit pull.
Refinancing in California, answered.
The questions California homeowners ask us most. If yours is not here, a licensed pro will answer it directly, with no obligation.
What does a California refinance cost?
The lender’s fees, a new lender’s title policy, the escrow fee, an appraisal where one is required, and prepaid interest and escrow. There is no transfer tax and no mortgage tax. On a $700,000 refinance plan on roughly $5,000 to $8,000 in total, depending on the lender’s charges and whether an appraisal is needed. Your actual costs are itemized on the Loan Estimate before you commit.
Will refinancing reset my property taxes?
No. Proposition 13 reassesses a home on a change of ownership or new construction, not on a refinance. Your assessed value and its 2 percent annual cap stay exactly as they were.
Does California charge a transfer tax on a refinance?
No. The county and city documentary transfer taxes apply when a deed is recorded, and a refinance records a deed of trust. California also has no tax on recording a mortgage.
How much equity do I need?
About 5 percent for a conventional rate-and-term refinance, and on a primary residence you generally keep 20 percent equity after an FHA or conventional cash-out; second homes and rentals are capped lower. VA cash-out can go higher under VA rules, though most lenders cap it at 90 percent. FHA Streamlines and VA IRRRLs usually need no appraisal at all.
Can I refinance to get rid of FHA mortgage insurance?
Yes, and it is the most common California refinance. Once you have about 20 percent equity, a conventional refinance removes the premium for good, up to the county’s high-balance limit. We show you the saving beside the closing costs so you can see the break-even before anything is ordered.
Do I have to come to Michigan?
No. Your licensed pro handles the refinance by phone, email and e-signature, and the closing runs through a California escrow company near you, with a mobile notary if you prefer.
Talk to a California-licensed pro about refinancing.
Tell us what you are looking to do and where in California. A licensed pro will call back, usually the same business day. Asking does not start a loan or require a hard credit pull.
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248-416-1361
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880 W. Long Lake Rd, Suite 300
Troy, Michigan 48098, just off I-75. Free parking.
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California DFPI Financing Law License 60DBO-117390. NMLS #1925352. Rated 4.9 across 5,300+ Google reviews.