Refinancing in San Francisco often involves jumbo loans and high HOA dues. Here’s when it makes sense, plus example break-even math.
Rates & Context (SF 2025)
- Jumbo rates: ~5.65%–6.25% depending on credit/reserves
- Common loan sizes: $800K–$1.2M (condos/lofts often jumbo)
- HOA: $500–$1,100/month (affects overall affordability, not P&I)
When Refinance Makes Sense in SF
- Rate drop ≥ 0.75% with break-even ≤ 36 months
- Staying ≥ 4 years; earlier sale shortens the benefit window
- Rolling costs into loan still leaves positive net savings
- Switching from ARM to fixed before adjustment creates predictability
Examples: Jumbo & Condo Cases
Jumbo SFH Refi
- Balance: $960K at 6.5% (23 yrs left)
- Refi: 5.6% at 30 yrs; $9,000 costs
- Current P&I: ≈ $6,070 → New P&I: ≈ $5,515
- Monthly savings: ≈ $555; break-even: ≈ 16 months
- Lifetime interest saved ≈ $120K; net savings ≈ $111K
Condo + HOA
- Balance: $720K at 6.25%; HOA $900/mo
- Refi: 5.5% at 30 yrs; $8,500 costs
- P&I drops ~$390/month; HOA unchanged
- Break-even: ~22 months; lifetime interest saved ≈ $76K
Points to Buy Down Rate
- $850K at 6.5% → 5.375% with 0.75 points
- Upfront cost increases; payment falls more
- Points break-even ~28 months; net savings remain positive
Run your actual balance/rate/term in the refinance calculator to validate.
FAQs for SF Refinancing
How do HOA fees affect refinance?
HOA doesn’t change P&I but increases total monthly housing. Ensure your new budget works after HOA and that your refi break-even remains reasonable.
Is TIC financing tougher?
Yes,TICs often carry stricter terms and fewer lender options. If you own a TIC, shop multiple lenders and verify fees before proceeding.
What’s a realistic SF jumbo rate?
Jumbo rates can sit ~0.1–0.4% above conforming depending on credit/reserves. Check Freddie Mac PMMS and current jumbo quotes.
Related Tools & Sources
- Refinance Calculator – compute break-even and net savings.
- How to Use the Refinance Calculator – step-by-step guide.
- Mortgage Calculator – visualize amortization and extra payments.
- Home Affordability – confirm the new payment fits your budget.
- Freddie Mac PMMS – weekly mortgage rate trends.
- FHFA Conforming Loan Limits – jumbo thresholds by county.
- CFPB on Discount Points – how points trade off with rate.
FAQ
Should I refinance a condo with high HOA?
HOA doesn’t change P&I but it affects total housing cost. Ensure your overall budget improves and break-even is reasonable (≤ 36 months).
What about jumbo underwriting?
Expect stricter reserves and documentation. If the rate drop is meaningful, jumbo refis can still deliver strong savings.
Run Your SF Refi
Use the Refinance Calculator with your SF numbers before you lock a rate.