Refinancing replaces the loan on your home with a new one. It is worth doing when the new loan does something you need (a different rate or term, a fixed rate in place of an adjustable one, cash from your equity, or a change in who is on the loan) and that is worth more than the closing costs over the time you expect to keep the home. In California the steps are an application, an appraisal in most cases, underwriting and a closing, and the county the home is in decides whether the new loan is conforming or jumbo.
Sam Batayneh is a mortgage loan originator (NMLS 332474) and VP of Mortgage Lending at OriginPoint (NMLS 1598647). Sam has originated mortgages since 2004 and lends in all of California. Sam also works with homeowners who are refinancing, and jumbo loans are Sam’s specialty.
Six, each explained in full: what it is, who it fits and what lenders generally ask for. Program names are OriginPoint’s own. The descriptions are general education: what a lender asks of you depends on the lender and on your file.
The most common refinance
Rate-and-term refinance
What it is
A rate-and-term refinance replaces your loan with a new one for about the same balance. What changes is the rate, the term or both. You do not take cash out of your equity.
It is also how you change the kind of rate: from an adjustable rate to a fixed rate, or the other way.
Who it’s for
Homeowners who want a different rate, a shorter term to pay the loan off sooner, or a longer term to bring the monthly payment down. A longer term usually means more interest over the life of the loan.
It also fits owners with an adjustable rate that is about to start changing, and owners who may be able to end or reduce mortgage insurance.
What lenders generally ask for
Your current loan. A recent mortgage statement, and one for any second loan or HELOC.
Income. Recent pay stubs and W-2s, or tax returns if you are self-employed.
Savings and credit. Recent account statements, and your credit history.
The home. An appraisal in most cases, and your homeowners insurance.
A cash-out refinance is a new, larger loan. It pays off the loan you have, and the difference comes to you in cash at closing. The whole balance, the old loan and the cash together, is then repaid at the new loan’s rate and term.
Who it’s for
Homeowners with equity who want to use part of it, for example for work on the home, to pay off other debt or to buy another property. Paying off other debt this way turns it into debt secured by your home. Whether it suits your finances or your taxes is a question for your own CPA or financial adviser.
Equity left in the home. Each program limits how large the new loan can be against the home’s value, and the limit is usually tighter than on a rate-and-term refinance.
An appraisal. The home’s value sets how much cash is possible.
Income, savings and credit. The same documents as any refinance. Lenders often ask for more on a cash-out loan.
How the home is used. Rules are generally tighter for a second home or an investment property than for a main home.
A cash-out refinance increases what you owe on your home. Each lender sets its own limits, and all loans are subject to credit and underwriting approval.
A jumbo refinance is a refinance where the new loan is above the conforming limit for the county the home is in. Jumbo loans are not sold to Fannie Mae or Freddie Mac, so each lender sets its own rules on income, savings and the property. Knowing how different lenders look at a file matters most here.
Owners in the parts of California where a loan above the county limit is common. OriginPoint lists fixed-rate, adjustable-rate and interest-only jumbo options, for primary homes, second homes and investment properties, condos included, and for a rate-and-term refinance or a cash-out refinance.
The FHA Streamline is a refinance from one FHA loan into a new FHA loan. FHA designed it to ask for less paperwork than a full refinance. It replaces the loan; it is not a way to take cash out.
Who it’s for
Homeowners whose current loan is an FHA loan, who are up to date on their payments, and for whom the new loan is a real improvement, such as a move from an adjustable rate to a fixed one. FHA’s rules set what counts as a benefit and how long you must have had the current loan.
Mortgage insurance is required on all FHA loans, the new one included.
What lenders generally ask for
Your current FHA loan. A recent mortgage statement and your payment history.
A benefit from the new loan. FHA’s rules require that the refinance improves your position.
Income and credit. Often less documentation than on a full refinance. The program and the lender decide how much.
The home. Some FHA Streamline refinances are done without a new appraisal. Sam will tell you whether one is needed.
VA IRRRL stands for VA Interest Rate Reduction Refinance Loan. It replaces a VA loan you already have with a new VA loan, to change the rate or to move from an adjustable rate to a fixed one. It is not a way to take cash out.
A VA cash-out refinance is a different VA loan. It replaces your current loan, which does not have to be a VA loan, with a new VA loan, and it can pay you part of your equity in cash.
Who it’s for
The VA IRRRL is for eligible veterans, service members and surviving spouses who already have a VA loan on the home. The VA cash-out refinance is for eligible borrowers who live in the home and want to use their equity, or to move a loan of another type into a VA loan.
VA loans are backed by the U.S. Department of Veterans Affairs, and eligibility is decided by the VA’s rules. Most borrowers pay a VA funding fee, and some are exempt from it.
What lenders generally ask for
Your current loan. A recent mortgage statement. For a VA IRRRL it has to be a VA loan.
Certificate of Eligibility. The VA’s record that you are eligible. Sam can tell you how to request it.
Income, savings and credit. A VA IRRRL often asks for less than a full refinance. A VA cash-out refinance is underwritten in full.
The home. A VA cash-out refinance needs an appraisal ordered through the VA. A VA IRRRL may not need one.
OriginPoint lists VA loans as “Veteran loans”. The VA cash-out refinance is described here in general terms, from the VA’s own rules: ask Sam about current availability at OriginPoint. VA loans on the Loan options page.
Refinancing with self-employed, stock or contract income
What it is
A refinance is underwritten on your income as it is now, not as it was when you bought. If you have since started a business, moved to a job paid partly in stock, or begun working by the project, the lender reads the new income from the start.
When tax returns show the income, a conventional or jumbo loan is the usual starting point. OriginPoint’s Bank Statement loans document income from bank deposits in place of tax returns; OriginPoint’s name for its program in this area is OriginPoint Portfolio | Self-Employed. OriginPoint Portfolio | Assets can count documented assets, and OriginPoint Portfolio | Investor qualifies a rental property on its cash flow.
Who it’s for
Business owners, partners and independent contractors; people paid in RSUs, stock and bonuses; athletes on contracts; and entertainers and creators paid by the project or in royalties.
Tax returns. Usually two years, personal and business, with K-1s and 1099s.
Stock and bonus pay. Award agreements, and a history of what has vested or been paid.
Contracts. The contract itself, and what is still to be paid under it.
Accounts. Recent statements for bank and investment accounts.
OriginPoint Portfolio options have their own guidelines and terms and are not right for everyone. The lender still has to be satisfied that you can repay the loan.
Sam Batayneh and OriginPoint are not affiliated with or endorsed by HUD, FHA, the Department of Veterans Affairs, USDA or any government agency. Each lender sets its own rules, and they change. All loans are subject to credit and underwriting approval, and naming a program here is not a promise that a loan will be approved.
More situations
Other reasons to refinance, and two other tools.
Four more reasons from the list above, and how a HELOC and a reverse mortgage differ from a refinance.
HELOC or cash-out refinance: how they differ
Cash-out refinance
One new first mortgage replaces the loan you have and pays you part of your equity at closing. The whole balance moves to the new loan’s rate and term.
HELOC
A home equity line of credit is a second loan. Your current mortgage stays as it is, and you borrow from the line as you need it. Many HELOCs have a rate that can change.
How to choose
It often comes down to the loan you already have. A HELOC leaves it alone; a cash-out refinance replaces it. Ask Sam to lay the two side by side.
Mortgage insurance depends on the loan type and on how the loan balance compares with the home’s value. If the balance has come down or the value has gone up, a new loan may carry less mortgage insurance, or none.
FHA loans
Mortgage insurance is required on all FHA loans. Some owners with an FHA loan look at refinancing into a conventional loan, where mortgage insurance follows different rules.
Good to know
It turns on the appraised value and on your own file, and the closing costs count against the gain. Sam can compare the two loans for you.
Lenders rarely take a name off an existing loan. Removing a person from the loan generally means a new loan in the name of whoever is keeping the home, and they have to qualify for it on their own income and credit.
Buying out a co-owner
When the refinance also pays a co-owner for their share, each lender’s rules decide whether it is treated as a rate-and-term refinance or a cash-out refinance.
Good to know
Who is on the loan and who is on title are separate questions. Title is a legal matter, and in California a change in ownership can affect property tax, so ask your attorney or CPA before you sign a deed.
The new first mortgage is large enough to pay off both the current first mortgage and the second loan, which leaves one loan.
How lenders treat it
Whether that counts as a rate-and-term refinance or a cash-out refinance depends on the lender and on the second loan, for example whether it was used to buy the home.
Good to know
To refinance only the first loan and keep the second, the lender on the second loan usually has to agree to stay in second place. Tell Sam about every loan on the home at the start.
A construction loan or a bridge loan is short-term. When the home is finished, or the earlier home has sold, it is usually replaced with a regular long-term mortgage.
OriginPoint’s programs
Construction loans are OriginPoint’s one-time-close program: the loan becomes the permanent mortgage once the home is built. Buy Before You Sell is its program for making an offer before your current home has sold.
Good to know
The lender will want to see that the home is complete, and an appraisal of the finished home. Ask Sam early: the date the short-term loan comes due sets the calendar.
A reverse mortgage is not a refinance in the usual sense. It is a loan that lets eligible homeowners use the equity in their home, with its own costs, obligations and eligibility rules. OriginPoint has a national reverse lending team, and Sam can put you in touch with it.
Six steps, in the order they come. A refinance follows the same path as a purchase loan, without the purchase contract. How a home loan works, step by step.
Start with the goal
Tell Sam what you want the new loan to do: a different rate or term, cash out, or a change in who is on the loan. The goal decides which kind of refinance fits.
Apply and send documents
You apply online with OriginPoint and send your documents: your current mortgage statement, proof of income, account statements and your homeowners insurance.
The appraisal
An appraiser gives an opinion of the home’s value, which shows how the new loan compares with it. Some programs allow an appraisal waiver. Sam will tell you whether yours does.
Underwriting
The lender reviews your income, assets and credit, the title to the home and the appraisal, and may ask for more documents before it approves the loan.
Closing
You sign the new loan documents. The new loan pays off the old one, and any second loan that is being paid off with it.
The right to cancel
A three-business-day right to cancel applies to most refinances of a primary residence; Sam will tell you whether it applies to yours. Where it applies, the new loan is not paid out until that period has passed.
What it costs
What does a refinance cost, and when does it pay for itself?
A refinance has closing costs. It pays for itself when what you gain each month adds up to more than those costs before you sell or refinance again.
Closing costs on a refinance include the lender’s charges, the appraisal, and title and escrow fees. They are paid at closing or, on some loans, added to the new balance. However they are paid, they are a real cost, and the Loan Estimate you receive after applying lists each one before you commit.
Break-even is the point where what you have gained each month has caught up with what the refinance cost. To find it, compare three things: the cost of the refinance, the difference it makes each month, and how long you expect to keep the home or the loan. If you expect to sell or refinance again before that point, the refinance costs more than it returns.
The monthly payment is not the whole picture. A longer term can lower the payment and raise the total interest you pay, because the balance is repaid more slowly. A shorter term does the opposite. Starting a new long term partway through an old one also starts the count of years again.
A refinance that is not about the monthly figure, such as taking cash out or changing who is on the loan, is weighed differently: against what the money or the change is worth to you, and against the other ways of getting there. The mortgage calculator lets you test your own numbers. These pages quote no rates. The Daily Mortgage Show reports Freddie Mac’s published weekly national average as news, with its source; that is not an offer or a rate quote.
California specifics
What is different about refinancing in California?
Four things come up here more than in most states: county loan limits, how title is held, condo buildings and property tax. For tax and legal questions, ask your CPA or attorney.
County loan limits
The limit depends on the county
The conforming loan limit is set county by county. For 2026 it is $832,750 for a one-unit home in counties that follow the national baseline, and higher in high-cost counties, up to $1,249,125 (source: FHFA). So the same loan amount can be conforming in one county and jumbo in the next. See the 2026 loan limits by county.
Title
A home held in a trust or an LLC
Many lenders allow a home held in a revocable living trust to be refinanced after they review the trust documents. Many standard home loans are not made to an LLC, especially for a main home; for investment property, OriginPoint Portfolio | Investor lists closing in the name of an LLC. How to hold title is a legal question, so ask your own attorney, and tell Sam at the start how title is held.
Condos
Condos and the homeowners association
With a condo, the lender reviews the building as well as the borrower: the association’s budget, its insurance and any lawsuits. That review is done again on a refinance, so a change in the building can change which loans are available. Lenders count association dues as part of the monthly housing cost. Condo financing on the Loan options page.
Property tax
A refinance and your property tax
In California a home is generally reassessed for property tax when it changes ownership or when new construction is completed. A refinance by itself is generally not a change in ownership, so it generally does not cause a reassessment. Changing who is on title at the same time is a separate matter with its own rules. This is general information, not tax or legal advice: confirm with your county assessor or a CPA.
Loan limits: FHFA’s 2026 county loan limit file, one-unit homes, read November 10, 2026. Limits change each January. These are published limits, not an offer of any loan amount. General education only, not tax or legal advice.
Region by region
Refinancing by region: what is different where you live?
The kinds of refinance are the same everywhere in California. The county limit, the kinds of homes and the way people are paid are not. Each of the eight regions has a page of its own.
Refinancing in Los Angeles
2026 conforming loan limit · one-unit home · source: FHFA
Los Angeles County$1,249,125
The 2026 limit here is the highest FHFA allows in the contiguous states, and a great many homes still carry a loan above it, so a jumbo refinance is an everyday matter in Los Angeles. Many owners are paid by the project, through their own companies, or in residuals and royalties, and many hold their home in a trust. A lender documents all of that on a refinance just as it does on a purchase, and each lender does it in its own way.
2026 conforming loan limit · one-unit home · source: FHFA
San Francisco County$1,249,125
San Francisco is a city and a county in one, so a single limit covers all of it. A large share of homes are condos, flats in two- to four-unit buildings and tenancies in common, known as TICs: with a condo the lender reviews the building again on a refinance, and a TIC usually needs a kind of loan that only some lenders make. Many owners are paid partly in stock and bonuses, so how much of that pay a lender will count matters as much as the size of the loan.
2026 conforming loan limit · one-unit home · source: FHFA
Santa Clara County$1,249,125
San Mateo County$1,249,125
Santa Clara and San Mateo counties are both at the ceiling for 2026, and loans above it are common here. Pay often comes as a salary plus RSUs, an employee stock purchase plan and a yearly bonus, and lenders treat each part differently. Timing matters too: a new job, a vesting date or a lockup ending can change what a lender will count, so it helps to go through the calendar before you apply.
2026 conforming loan limit · one-unit home · source: FHFA
Orange County$1,249,125
Orange County shares its limit with Los Angeles County. A loan above the national baseline and up to that limit is high-balance conforming, and a loan above it is jumbo. Homeowners association dues are common, and newer areas often carry a special property tax known as Mello-Roos; lenders add both to the monthly housing cost when they work out what you can borrow. A second home on the coast is refinanced under different rules from a main home.
2026 conforming loan limit · one-unit home · source: FHFA
San Diego County$1,104,000
San Diego County’s limit is lower than the one in Los Angeles and Orange counties, so a loan turns jumbo sooner here: a loan amount that is still conforming in Orange County can be a jumbo loan a short drive south. The county is also home to large Navy and Marine Corps bases, so VA loans come up more often than in most of California. An owner with a VA loan can ask about the VA IRRRL.
2026 conforming loan limit · one-unit home · source: FHFA
Santa Barbara County$941,850
San Luis Obispo County$1,000,500
Monterey County$994,750
Santa Barbara, San Luis Obispo and Monterey counties each have a limit of their own, so the same loan amount can be conforming in one county and jumbo in the next. Many homes here are second homes, and some sit on acreage or come with vineyards, orchards or guest houses. A property that earns farm income, or one rented by the night, may not fit a standard home loan, and each lender draws that line in its own place.
2026 conforming loan limit · one-unit home · source: FHFA
Napa County$1,017,750
Sonoma County$897,000
Napa and Sonoma counties have separate limits, so check which county the home is in before you assume a loan is conforming. Many homes are second homes or vacation homes, which are financed under different rules from a main home, and some come with acreage, planted vines, a private well or a septic system. On a large or unusual property an appraisal can take longer, because there are fewer similar sales to compare it with, and a lender may ask for a second appraisal.
2026 conforming loan limit · one-unit home · source: FHFA
Riverside County$832,750
Palm Springs and the rest of the Coachella Valley are in Riverside County, which follows the national baseline, so there is no high-balance range here: a loan above the limit is a jumbo loan. Many homes are second homes, and many are in communities with homeowners association dues, including golf and country club communities. Some sit on leased land, including tribal land; lenders look closely at how many years are left on the lease, and not every loan program accepts leased land.
One-unit homes. Source: FHFA’s 2026 county loan limit file, read November 10, 2026. A loan above the county’s limit is a jumbo loan. Limits change each January, and the 2027 figures are expected in late November 2026. These are published limits, not an offer of any loan amount.
A lender reads a refinance on your income as it is now. Each of these pages explains, in general terms, how lenders look at one kind of income or one kind of purchase.
Common questions
Plain answers about refinancing in California.
Should I refinance my home loan?
It depends on what the new loan would change and what it would cost. A refinance makes sense when it does something you need, such as a different rate or term, a fixed rate in place of an adjustable one, or cash from your equity, and when that is worth more than the closing costs over the time you expect to keep the home. Sam can go through that comparison with your own figures.
Can I refinance a jumbo loan in California?
Yes. A jumbo loan can be refinanced like any other, as a rate-and-term refinance or a cash-out refinance. A refinance is jumbo when the new loan amount is above the conforming limit for the county the home is in, and each lender sets its own rules for it. Jumbo loans are Sam’s specialty. See the 2026 loan limits by county.
Does refinancing reset my property taxes in California?
Generally no. In California a home is generally reassessed for property tax when it changes ownership or when new construction is completed, and a refinance by itself is generally not a change in ownership. Changing who is on title at the same time is a separate matter with its own rules. This is general information, not tax or legal advice, so confirm with your county assessor or a CPA.
How soon after buying can I refinance?
It depends on the program and the lender. Many loan programs set a waiting period after a purchase or an earlier refinance, and it is often longer for a cash-out refinance. Tell Sam when you bought or last refinanced, and Sam will check the rule for the loan you are looking at.
Can I refinance if I’m self-employed?
Yes, self-employed income can generally be used for a refinance when it is documented. Lenders usually average about two years of tax returns and count what is left after business expenses. OriginPoint describes its Bank Statement loans as for self-employed borrowers who want a home loan without tax returns, W-2s or pay stubs; they have their own rules and are not right for everyone. See the page for self-employed borrowers.
What is a VA IRRRL?
A VA IRRRL is a VA Interest Rate Reduction Refinance Loan. It replaces a VA loan you already have with a new VA loan, to change the rate or to move from an adjustable rate to a fixed one, and it is not a way to take cash out. Eligibility follows the VA’s rules. Sam can tell you whether your loan qualifies.
What is an FHA Streamline refinance?
An FHA Streamline is a refinance from one FHA loan into a new FHA loan, designed to ask for less paperwork than a full refinance. You have to be up to date on your payments, and FHA’s rules require that the new loan benefits you. Mortgage insurance is required on the new FHA loan, as on every FHA loan.
Cash-out refinance or HELOC: which should I use?
They work differently. A cash-out refinance replaces your mortgage with a larger one and pays you the difference, so the whole balance moves to the new loan’s rate and term. A HELOC is a second loan, often with a rate that can change, and it leaves your current mortgage as it is. Which fits depends on the loan you already have and how you plan to use the money, so ask Sam to compare the two.
Do I need an appraisal to refinance?
In most cases, yes. The appraisal tells the lender how the new loan compares with the home’s value. Some programs allow an appraisal waiver, and some FHA Streamline and VA IRRRL refinances are done without a new appraisal. Sam will tell you whether one is needed for yours.
Can I refinance a home held in a trust?
Often yes. Many lenders allow a home held in a revocable living trust to be refinanced after they review the trust documents. A home held in an LLC is harder, because many standard home loans are not made to companies. How to hold title is a legal question, so ask your own attorney, and tell Sam at the start how title is held.
General education only. Each lender sets its own rules, and they change. Nothing here is a promise that a loan will be approved or of any terms. This is not tax, legal or investment advice: for those questions, ask your own CPA, attorney or business manager.
Thinking about a refinance?
Tell Sam what you want the new loan to do. Sam will lay out your options in plain words.
