Current Refinance Rates in San Diego

A Snapshot of Today’s Market

As of mid-July 2025, the average 30-year fixed refinance rate in San Diego sits around 6.8% to 6.9%. The 15-year fixed rate hovers near 5.9%, while 5-year adjustable-rate mortgages (ARMs) are approximately 7.3%. These rates are consistent with national averages, with 30-year fixed refinance loans trending near 7.08%.

Compared to the 3% to 4% rates seen during the early 2020s, today’s rates may seem daunting. However, refinancing can still offer benefits depending on your financial goals.

Why Rates Remain Elevated

Mortgage rates remain high due to persistent inflation and ongoing actions by the Federal Reserve to stabilize the economy. Rate cuts aren’t likely in the short term, which means borrowers must focus on strategy over timing.

When Refinancing Still Makes Sense

Tap Into Home Equity

With San Diego home values rising steadily—currently averaging over $875,000—many homeowners have built significant equity. A cash-out refinance lets you borrow against this equity to pay off high-interest debt, fund home improvements, or invest in other financial goals.

Lending Bee offers smart equity access strategies tailored to your long-term financial outlook.

Improve Your Loan Terms

If you originally locked into a higher rate or had a weaker financial profile, refinancing could now get you better terms. For example, if your credit score has increased or your debt-to-income ratio has improved, you may qualify for a lower interest rate or better loan structure.

Lending Bee helps evaluate your current financial profile against available refinance options.

Switch Loan Types

Many borrowers use refinancing to move from an adjustable-rate mortgage (ARM) to a fixed-rate loan. In a rising-rate environment, this can provide peace of mind and financial stability.

Alternatively, switching from a 30-year to a 15-year fixed loan can save on interest in the long run, even if monthly payments increase slightly.

Eliminate Private Mortgage Insurance (PMI)

If your home equity has reached 20% or more, refinancing can help eliminate PMI. This reduces your monthly payment and increases your long-term savings.

Lending Bee ensures accurate home appraisals and streamlined processes for removing PMI.

When Refinancing May Not Be Ideal

Minimal Interest Rate Savings

One rule of thumb: refinancing is only worthwhile if you can reduce your interest rate by at least 0.5% to 1%. Smaller reductions often don’t cover the upfront closing costs, which can range from 3% to 6% of your loan amount.

Lending Bee performs a break-even analysis to ensure you won’t lose money by refinancing.

Short Remaining Loan Term

If you’re less than 5 years away from paying off your mortgage, refinancing may not save enough to be worth it. In some cases, staying with your current loan is more beneficial.

Recent Home Purchase or Refi

Homeowners who purchased or refinanced within the past 12 to 24 months at a similar or lower rate typically don’t benefit from refinancing again so soon.

Local Factors That Influence Refinancing Decisions

San Diego’s High Property Values

Homes in San Diego often fall into the jumbo loan category, especially in areas like La Jolla, Del Mar, or Rancho Santa Fe. Jumbo loans typically come with stricter underwriting guidelines and may carry slightly higher rates.

Lending Bee specializes in navigating jumbo refinance options, ensuring competitive offers despite higher loan limits.

Market Conditions and Inventory

San Diego’s real estate market has seen slight price adjustments and more listings, giving homeowners better appraisal conditions. Refinancing during periods of strong equity and balanced inventory can enhance approval odds and valuation.

California-Specific Laws

California has unique regulations on property taxes and lending. Proposition 13, for instance, caps how much property taxes can rise annually. Lending Bee helps you understand how refinancing affects these protections and your tax obligations.

Lending Bee’s Advantage: Smart Refinance Guidance

Personalized Rate Comparison

We compare dozens of lenders—banks, credit unions, and private lenders—to secure the most competitive rates and terms available to San Diego homeowners.

Lending Bee doesn’t just chase low rates. We focus on the total cost of the loan, including APR, fees, and loan terms, to provide a clearer financial picture.

Break-Even and Cost Analysis

We calculate your break-even point: how long it will take to recover closing costs based on monthly savings. If you don’t plan to stay in your home that long, refinancing might not make sense. We give you the data to decide.

Cash-Out and Debt Consolidation Strategy

Need funds for home improvements or to consolidate debt? Lending Bee structures cash-out refinances that align with your goals—while avoiding overborrowing and keeping long-term equity intact.

We also provide clarity on potential tax implications and credit impacts.

Refinance Options Tailored to You

Whether you’re removing PMI, switching to a shorter term, or stabilizing your payments, Lending Bee ensures each refinance option is tailored to your unique situation. We take time to understand your needs before recommending a path forward.

Is Now the Right Time to Refinance?

Ask yourself:

  • Is your current rate at least 0.5% higher than what’s available?
  • Has your credit score improved significantly?
  • Do you need to access home equity?
  • Are you planning to stay in your home for at least 3 to 5 years?
  • Do you want to eliminate PMI or consolidate high-interest debt?

If you answered yes to any of these, it’s worth exploring your refinance options with Lending Bee.

Final Thoughts

Refinancing in San Diego during a high-rate cycle might not seem ideal, but the right conditions can still make it a smart move. Whether you’re looking to tap equity, lower payments, change loan types, or eliminate PMI, Lending Bee provides the guidance and tools to make the best decision.

Don’t wait for rates to drop. Work with Lending Bee to find out if refinancing now can strengthen your financial future.