Hi, I’m Trevor Sanders, owner of SD-Loans here in San Diego. If you’ve been thinking about refinancing your home in 2025, you’re not alone. With interest rates stabilizing, new rules from lenders, and updated requirements for borrowers, this year brings both challenges and opportunities. My goal with this guide is to simplify the process and give you the clear, local insight you need to make the right decision.
In 2025, average refinance rates in San Diego range between 6.2% and 6.8% for 30-year fixed loans, with slightly lower rates for 15-year options. Homeowners need a credit score of at least 620, a debt-to-income ratio below 43%, and 20% equity in most cases. FHA and VA refinances remain flexible alternatives with lower equity requirements.
“Refinancing isn’t just about chasing the lowest rate—it’s about finding a loan that matches your financial goals today and tomorrow.” – Trevor Sanders, Owner of SD-Loans
Why Consider Refinancing in 2025?
Refinancing your mortgage can help you:
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Lower your monthly payment with a better interest rate
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Pay off your loan faster with a shorter term
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Tap into your home’s equity for renovations, debt consolidation, or investments
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Switch from an adjustable-rate mortgage (ARM) to a stable fixed-rate loan
In San Diego’s competitive housing market, refinancing can also give you breathing room if your monthly expenses have increased.
Current Refinance Rates in San Diego
30-Year Fixed Rate
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Average: 6.2% – 6.8%
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Best for: Homeowners who want predictable, long-term stability
15-Year Fixed Rate
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Average: 5.7% – 6.3%
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Best for: Paying down your mortgage faster and saving on long-term interest
Adjustable-Rate Mortgages (ARM)
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Initial rates can be lower (around 5.9% – 6.2%), but risk rises when rates adjust after 5–7 years.
Rules & Requirements in 2025
Credit Score
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Conventional loans: 620+
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FHA refinances: as low as 580
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VA refinances: no strict minimum, but most lenders prefer 620
Debt-to-Income Ratio (DTI)
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Standard: below 43%
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Jumbo and non-QM loans may require even lower ratios
Equity Requirements
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Conventional cash-out: at least 20% equity
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FHA streamline refinance: no appraisal required in some cases
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VA IRRRL (Interest Rate Reduction Refinance Loan): no equity requirement
Types of Refinancing Available
Rate-and-Term Refinance
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Replace your existing loan with one that has better terms.
Cash-Out Refinance
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Borrow against your equity to access cash for projects or debt payoff.
FHA Streamline Refinance
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Simplified process, no appraisal required, great for current FHA borrowers.
VA IRRRL
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Designed for veterans and service members—fast, easy, and with minimal paperwork.
Non-QM Refinance
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Ideal for self-employed borrowers or those with unique financial situations.
Steps to Refinancing in San Diego
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Check Your Credit – Clean up errors and pay down debts.
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Calculate Equity – Use your lender’s appraisal or online tools.
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Compare Rates – Work with a local broker like SD-Loans who shops multiple lenders for you.
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Apply & Submit Documents – Income, tax returns, bank statements.
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Lock Your Rate – Secure your deal while rates are favorable.
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Close & Save – Sign documents and enjoy your updated mortgage terms.
Local Market Factors That Matter
San Diego is a high-cost market. The median home price in mid-2025 is near $888,000, and jumbo loans are common. Refinancing here means understanding unique local dynamics:
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Equity gains: Many homeowners now have more than 40% equity due to rapid appreciation.
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Rising property taxes: Refinancing can help manage overall costs.
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Neighborhood impact: From Encinitas to Chula Vista, property values shift differently, making personalized strategies important.
When Refinancing Makes the Most Sense
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You bought your home with a 7–8% mortgage in the early 2020s.
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You’ve built significant equity and want to cash out.
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You’re planning major renovations or debt consolidation.
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You want to switch from an ARM to a fixed-rate loan before adjustments kick in.
Common Mistakes Homeowners Make
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Focusing only on the rate – Fees and closing costs matter too.
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Not checking credit first – A few points higher on your score could save thousands.
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Waiting too long – Rates can shift quickly, even within weeks.
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Choosing the wrong loan type – A refinance should match your financial goals, not just look good on paper.
FAQs
Q1: What is the minimum credit score to refinance in San Diego in 2025?
Most conventional refinances require 620, while FHA may allow as low as 580.
Q2: Can I refinance if I have a VA loan?
Yes, the VA IRRRL program is one of the simplest ways to lower your rate.
Q3: How long does refinancing take?
Typically 21–30 days in San Diego, depending on your loan type and documentation.
Q4: Do I need 20% equity to refinance?
Not always—FHA and VA programs offer more flexibility.
Q5: Is refinancing worth it in 2025?
Yes, if your current mortgage is over 7%, or if you need cash-out for home projects or debt consolidation, refinancing could save you money.
Working with a Local San Diego Expert
At SD-Loans, my team and I bring local expertise, transparent guidance, and tailored solutions. We’ve helped hundreds of San Diegans refinance with confidence—whether it’s through conventional, jumbo, FHA, VA, or non-QM programs.
Refinancing in 2025 is all about timing, preparation, and partnering with the right guide. With rates stabilizing and new rules shaping eligibility, San Diego homeowners have real opportunities to improve their financial future this year.
If you’re ready to explore refinancing options, I’d love to walk you through the process and create a strategy that works for you.
📞 Call/Text me at 619-855-5061 or visit SD-Loans.com to get started.
