Why San Diego Homeowners Are Refinancing More in 2025

Hi, I’m Trevor Sanders, owner of SD-Loans here in San Diego. Every year, I get asked, “Is now the right time to refinance?”

In 2025, more homeowners across San Diego County are answering that question with a yes. Rates are shifting, home values have surged, and local market conditions are creating unique opportunities. Let’s break down why refinancing has become such a popular move this year.

In 2025, San Diego homeowners are refinancing more because rates have stabilized around 6–7%, home values remain high (median near $888,000), and equity gains give homeowners the chance to lower payments, consolidate debt, or access cash for investments. Local housing trends and rising costs are driving demand for smarter mortgage strategies.

“Refinancing in San Diego isn’t just about chasing a lower rate—it’s about using your equity wisely in one of the most competitive housing markets in the country.” – Trevor Sanders, Owner of SD-Loans

San Diego Housing Prices in 2025

The San Diego real estate market remains one of the hottest in the nation.

• Median sale price (2025): around $888,000, up nearly 6% from 2024.

• Certain neighborhoods—like Poway and Del Mar—have seen double-digit price growth, while some entry-level areas have cooled slightly.

This continued rise in home values means many homeowners have built up significant equity—equity that can now be leveraged through refinancing.

Where Refinance Rates Stand Now

In early 2025, refinance rates in San Diego have settled into a stable range:

• 30-year fixed refinance: 6.2% – 6.9%

• 15-year fixed refinance: 5.7% – 6.5%

• ARMs (Adjustable-Rate Mortgages): 5.9% – 6.2% starting rates

This stability is key. After the rollercoaster of pandemic-era rates, many San Diegans see this as the “new normal” and are choosing to refinance to lock in predictability.

Why Refinancing Is Popular in 2025

1. Record Equity Gains

Homeowners in San Diego are sitting on record amounts of equity thanks to rising home prices. Tapping into that equity through a cash-out refinance allows them to fund renovations, invest, or pay off high-interest debt.

2. Rising Cost of Living

With everything from groceries to utilities climbing, homeowners are using refinancing as a way to reduce monthly mortgage payments and free up household cash flow.

3. Debt Consolidation Opportunities

Credit card debt in California has risen sharply, and many families are rolling it into their mortgages at lower rates.

4. Strategic Moves Before Market Shifts

Some homeowners expect rates may tick up again, so they’re locking in while things are steady. Others want to shift from ARMs into long-term fixed mortgages for security.

Who’s Refinancing in San Diego?

• First-time buyers from the early 2020s who locked in at higher 7–8% rates.

• Families with big equity cushions looking to remodel or invest.

• Military families using VA streamline refinance programs to save on payments.

• Self-employed homeowners turning to non-QM refinances for flexibility.

Local Trends Driving Refinances

1. Neighborhood Variances: Areas like North Park and Chula Vista are seeing more debt-consolidation refinances, while La Jolla and Rancho Santa Fe homeowners lean toward jumbo refinances.

2. Market Cooling Slightly: Homes are taking longer to sell (averaging 21 days on market vs. 15 in 2024). Some owners refinance instead of selling.

3. Shift Toward Stability: Many homeowners prefer fixed payments to guard against economic uncertainty.

Pros of Refinancing in 2025

• Lower your monthly payment

• Tap into equity for home improvements or investments

• Pay off high-interest debts

• Switch to a fixed-rate mortgage for stability

• Shorten your term and build equity faster

Risks to Keep in Mind

• Closing costs (2–5% of the loan amount)

• Extending your loan term can increase total interest paid

• Using equity without a clear strategy can weaken long-term financial stability

FAQs

Q1: What’s the average refinance rate in San Diego in 2025?
Rates range from about 6.2% to 6.9% for 30-year fixed loans, with 15-year options slightly lower.

Q2: Is it worth refinancing if I bought my home in 2021 or 2022?
Yes—if you locked in a rate of 7% or higher, you may benefit from today’s stabilized rates.

Q3: How much equity do I need to refinance?
Generally, 20% is best for conventional cash-out refinances, but FHA and VA programs allow more flexibility.

Q4: Are San Diego homeowners doing more cash-out refinances in 2025?
Yes, many are using cash-out refinances to pay off debt or fund home improvements.

Q5: How long does refinancing take?
Most refinances close in 21–30 days, depending on appraisal and documentation.

San Diego homeowners are refinancing more in 2025 because the timing makes sense: strong equity positions, steady rates, and the need for financial breathing room in a high-cost city. Whether it’s to save money, consolidate debt, or invest in the future, refinancing has become a key strategy for local families.

If you’re wondering whether refinancing is right for you, let’s talk. I’ll walk you through your numbers and help you see whether it’s the smart move.

📞 Call/Text me at 619-855-5061 or visit SD-Loans.com to schedule a consultation.