California refinance rates for homeowners

California refinance rates for current homeowners are still relatively low compared to historical norms.  As of July the 30 year fixed rate has bounced between 3.875%-4.25% (zero points).  Refinance rates continue to be near the 3.75% lows from late spring and well below the early summer rise to the mid 4s.  Californians seeking a low home loan rate should contact 2-4 companies and compare which offer is better.   Even if you only want a 30 year fixed rate mortgage you should also see what the company has to offer on a 20 year or 15 year fixed program.  You might be surprised and find out that a short term mortgage better suits your financial situation.  If you plan on moving in the next 5 years then a 7/1 ARM is a great option – the rate is lower than a 30 year fixed and if you’re moving before the rate adjusts then you avoid any worries about your rate going up.

Depending on your current situation you may also want to examine the difference between a zero cost loan and one with costs (and possibly points).  A zero cost loan is not always the best option; sometimes paying some costs to bring down your rate makes a lot of sense – especially if you can make up those costs within the first 12 months.  California refinance rates should continue to be steady going into August ahead of a possible Fed rate hike in September.