Sacramento, California Mortgage Refinance Interest Rates
Discover the latest mortgage interest rates to make informed decisions about your home refinancing.
Interest rate over time in Sacramento, California
Timeframe
Daily refinance averages provided by the Mortgage Research Center.
Compare mortgage rates in Sacramento, California
Showing results for: 15-Year Fixed and 30-Year Fixed refinance offers for Single Family or Townhome properties in CA, total loan amount of $228,000.
| Lender | APR / Rate | Monthly Payment | |
|---|---|---|---|
Rate data provided by RateUpdate.com. Displayed by Mortgage Research Center, NMLS #1907, Equal Housing Opportunity. Rates and fees are estimates and subject to change without notice. Payments do not include taxes and insurance premiums. Actual payments may be higher. Not all lenders participate in this marketplace. Loan availability and terms may vary by state and lender. Lender offers, including badges like “Lowest APR” or “Lowest Payment,” are based only on results displayed here and may not reflect the absolute lowest offer available in the market. Rate and product details
Should You Refinance in Sacramento?
0.9% annual appreciation
· Data updated 10/4/2026While Sacramento's market is currently experiencing slower appreciation (0.9% annually), refinancing to lower your interest rate can help reduce monthly costs and build equity faster.
Local Market Context
Sacramento, California homes have a median value of $619,200, with 0.9% year-over-year appreciation. While appreciation is slower, refinancing to a lower rate can help you build equity faster and reduce monthly costs.
Estimated Monthly Payment in Sacramento
Based on the median home price of $619,200 with 20% down at 7.59% (30-year fixed):
| Principal & Interest | $3,494.89/mo |
| Property Tax | $392/mo |
| Homeowner's Insurance (est.) | $125/mo |
| Estimated Total (PITI) | $4,012/mo |
Rate Savings Scenarios for Sacramento
How your monthly principal & interest payment changes at different rates (20% down on $619,200 median home):
| Interest Rate | Monthly P&I | vs. Current Rate |
|---|---|---|
| Current rate (7.59%) | $3,495 | — |
| 7.09% (–0.5%) | $3,326 | –$169/mo |
| 6.59% (–1.0%) | $3,161 | –$334/mo |
Down Payment Impact in Sacramento
Monthly principal & interest at 7.59% for different down payments on the $619,200 median home:
| Down Payment | Loan Amount | Monthly P&I |
|---|---|---|
| 10% down ($61,920) | $557,280 | $3,932 |
| 15% down ($92,880) | $526,320 | $3,713 |
| 20% down ($123,840) | $495,360 | $3,495 |
Property Tax Impact
Property taxes in Sacramento, California average 0.76% of home value, which is lower compared to the national average. When refinancing, it's important to remember that your total monthly payment includes these taxes (approximately $392 per month for a median-valued home). A lower interest rate might reduce your principal and interest payment, but your property tax portion stays the same.
California ranks 35th (relatively low) nationally for property taxes, which directly affects your total monthly payment when buying or refinancing.
Cost of Living Context
Sacramento's cost of living is 2% below the national average (index: 98), meaning housing costs tend to run lower than typical — which may allow for higher purchasing power when buying or refinancing.
Calculate Your Exact Refinance Savings
Get a personalized analysis based on your specific mortgage details, compare multiple offers, and see your break-even point.
Use Refinance CalculatorNavigating Refinancing in Sacramento's Premium Market
Hey Sacramento! As California's capital, your city has become an incredibly desirable—and increasingly expensive—market. Here is what the local numbers look like right now.
The Jumbo Loan & LTV Factor
With prices steadily rising, many homeowners hold higher-balance or "Jumbo Loans" (mortgages that exceed standard federal limits). Refinancing these requires a close look at your Loan-to-Value (LTV) ratio—the percentage of your home's value you still owe.
This drops your LTV naturally. If your LTV dips below 80%, you are in a prime position to negotiate lower rates with premium lenders or eliminate mortgage insurance entirely.
Property Tax Tip for Sacramento Homeowners
When you refinance, your new lender will recalculate your "escrow" account. Because Prop 13 protects your base rate, a cash-out refinance won't trigger a massive reassessment of your home's value for tax purposes—meaning you can access your equity without a tax penalty!
California Refinance Programs for Sacramento Residents
The California Housing Finance Agency (CalHFA) is headquartered right in your backyard. Check out their CalHERO program. If you are a first responder, teacher, veteran, or nurse working in the Sacramento area, this program offers reduced interest rates and fees to honor your service to the community.
What Interest Rate Drop Makes Refinancing Worth It in Sacramento?
In Sacramento's stable market with 0.9% annual appreciation, refinancing is generally worthwhile when you can reduce your rate by at least 0.75-1%. For a $619,200 home with an 80% LTV ($495,360 loan), dropping from 7% to 6% saves approximately $140/month. With typical closing costs around $12,384, you'd break even in about 88 months. If you plan to stay in your home at least 8 years, refinancing makes financial sense.
How Do I Calculate My Break-Even Point for Refinancing in Sacramento?
Calculate your break-even point by dividing total closing costs by monthly savings. In Sacramento, closing costs typically run 2-3% of your loan amount. If you're refinancing $495,360 (80% of Sacramento's $619,200 median home value), expect around $12,384 in costs. Compare your current monthly payment to your new payment including the 0.76% property tax, insurance, and the new principal/interest. If refinancing saves $150/month, your break-even is 83 months. Don't forget to factor in how long you plan to keep the home.
Should I Refinance from a 30-Year to 15-Year Mortgage in Sacramento?
Shortening your term from 30 to 15 years can save substantial interest and typically offers rates 0.5-0.75% lower. On Sacramento's median home value of $619,200, you could save over $100,000 in interest over the loan's life. However, monthly payments increase significantly-a $495,360 loan at 6% jumps from approximately $3,362/month (30-year) to $4,315/month (15-year at 5.5%). Refinance to a 15-year if you can comfortably afford the higher payment and want to build equity faster in Sacramento's stable market.
Can I Refinance If I Still Have PMI in Sacramento?
Yes, and eliminating PMI is often a primary refinancing goal. PMI typically costs 0.5-1% of your loan amount annually. On a $495,360 mortgage in Sacramento, that's $200-400/month. With 0.9% annual appreciation plus principal paydown, you may have crossed the 80% LTV threshold. If you purchased with 5-10% down 3-4 years ago, appreciation likely brought you to 20%+ equity. Refinancing removes PMI permanently (unlike conventional loans where it can take years to cancel), immediately lowering your payment even if you get the same interest rate.
Is a No-Closing-Cost Refinance a Good Deal in Sacramento?
No-closing-cost refinances roll $14,861 in typical closing costs into your loan balance or offset them with a slightly higher interest rate (usually 0.25-0.5% higher). In Sacramento's stable market, this makes sense if you plan to move within 3-5 years, avoiding the $83-month break-even period on traditional refinances. However, if you're staying long-term, paying closing costs upfront and getting a lower rate saves more money over time. Calculate both scenarios: upfront costs with lower rate versus no costs with higher rate over your expected timeline.
How Sacramento compares across California
Median home prices vary widely across California, which changes what a typical refinance costs. Here is the estimated monthly principal and interest on a median-priced home (80% loan-to-value) at today's average 30-year fixed rate of 7.59%:
| City | Median home price | Est. monthly P&I | vs. Sacramento |
|---|---|---|---|
| Sacramento | $619,200 | $3,495 | — |
| Salinas | $658,000 | $3,714 | +$219/mo |
| Long Beach | $521,800 | $2,945 | −$550/mo |
| Los Angeles | $487,800 | $2,753 | −$742/mo |
Estimates use each city's median home price with the same statewide average rate; actual quotes vary by lender, credit profile, and loan size.