Best Cash-Out Refinance Lenders of August 2025

Last updated on April 2, 2025

Written by

Lead Writer & Content Strategist

Edited by

Head of Content, Home Loans

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Co-written by

Lead Writer/Spokesperson

Written by

Lead Writer & Content Strategist

Co-written by

Lead Writer/Spokesperson

Edited by

Head of Content, Home Loans

Fact Checked

Many or all of the products on this page are from partners who compensate us when you click to or take an action on their website, but this does not influence our evaluations or ratings. Our opinions are our own.

A cash-out refinance could help if you need money for major home repairs or renovations or want to consolidate high-interest debt. To narrow down your choices, NerdWallet has picked some of the best cash-out refinance lenders so you can quickly find lenders that fit your priorities.

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Governed by NerdWallet's strict guidelines for editorial integrity.

NerdWallet's mortgage content, including articles, reviews and recommendations, is produced by a team of writers and editors who specialize in home lending. Their work has appeared in The Associated Press, USA Today, The Washington Post, MarketWatch, Newsweek and many other national, regional and local publications. They have been cited in publications including The Wall Street Journal, and appeared on NerdWallet's "Smart Money" podcast as well as local TV and radio.

Why trust NerdWallet

50+ mortgage lenders reviewed and rated by our team of experts.
40+ years of combined experience covering mortgages and financial topics.
Objective, comprehensive star rating system assessing 120+ categories and 5,000+ data points.
Governed by NerdWallet's strict guidelines for editorial integrity.

Our 2025 Best-Of Award Winner

Best Mortgage Lender Cash-Out Refinancing

Rocket Mortgage, LLC

NMLS#3030

Rocket Mortgage, LLC

NMLS#3030

5.0

NerdWallet rating

Cash-out refinancing

WHY OUR NERDS LOVE IT

Rocket Mortgage does a significant volume of cash-out refinancing, with competitive average rates and a convenient online experience.

Read our methodology See all winners

Best Cash-Out Refinance Lenders of August 2025

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Best Cash-Out Refinance Lenders of August 2025
What's a cash-out refi?
How much cash you can get
Pros and cons of a cash-out refinance
Alternatives to a cash-out refinance
Methodology
Recap
About the authors

Lender	NerdWallet Rating	Min. credit score	National / regional
Rocket Mortgage, LLC: NMLS#3030	5.0 /5 Cash-out refinancing Best for cash-out refinances overall	580	National
Navy Federal: NMLS#399807	4.5 /5 Cash-out refinancing Best for active military and veterans	N/A	National
PenFed: NMLS#401822	4.5 /5 Cash-out refinancing Best for credit union experience	620	National
U.S. Bank: NMLS#402761	4.5 /5 Cash-out refinancing Best for overall mortgage experience	N/A	National
PNC Bank: NMLS#446303	4.5 /5 Cash-out refinancing Best for traditional lending experience	620	National
Pennymac: NMLS#35953	5.0 /5 Cash-out refinancing Best for rate transparency	620	National
loanDepot: NMLS#174457	5.0 /5 Cash-out refinancing Best for highly rated mobile app	520	National
Network Capital: NMLS#11712	5.0 /5 Cash-out refinancing Best for fast closings	540	Regional
Citibank: NMLS#412915	4.5 /5 Cash-out refinancing Best for traditional lending experience	N/A	National
Carrington: NMLS#2600	4.5 /5 Cash-out refinancing Best for low average interest rates	550	National
AmeriSave: NMLS#1168	4.5 /5 Cash-out refinancing Best for FHA loans	580	National

What's a cash-out refi?

With a cash-out refinance, you replace your current mortgage with a new, larger loan. The difference between your new loan amount and what you owed is how much you "cash out."

How much cash you can get

The amount of cash you can get depends upon your home equity — how much your home is worth minus how much you owe.

Say your home is worth $400,000 and you owe $100,000. That means you have $300,000 in equity.

Most lenders make you keep at least 20% equity in your home. In the example above, the house is worth $400,000, and 20% of that is $80,000. You could borrow up to $320,000 in a cash-out refinance: the $400,000 value minus $80,000 in equity.

Also, the bank won't lend you more than you can afford to repay every month. That could limit the amount you can borrow.

You'll need an appraisal to determine your home's current value. If your home has increased in value since you bought it, you may have more equity than just what you've gained from paying down principal.

When getting a cash-out refinance, you can use the money however you wish. However, since the loan is secured by your house, you risk foreclosure if you can’t pay it back. Funds from a cash-out refinance can be helpful to pay for:

Large-scale home improvements or renovations
Education expenses
Debt consolidation

🤓

Nerdy Tip

What if you’ve gotten a cash-out refinance before, but want to do it again? Most loans have a waiting, or “seasoning,” requirement of at least six months. Within that guideline, you can refinance as often as you want — but you’ll pay closing costs each time.

Home equity loans or lines of credit are alternatives for tapping a portion of home equity without refinancing your entire mortgage.

Pros and cons of a cash-out refinance

Pros

Potentially lower interest rate (if rates dropped since your purchase)
Simple repayment: One loan, one bill to remember
Access more funds at a lower rate than with a personal loan or credit card

Cons

Potentially higher interest rate (if rates went up since your purchase)
Risk of foreclosure if you can’t make the payments
Closing costs run 2%-6% of the new loan amount
Funds aren’t instant: Underwriting can take weeks

Alternatives to a cash-out refinance

A cash-out refinance isn't the only way to tap your home's equity. You can also explore a HELOC or a home equity loan.

HELOCs

A home equity line of credit, or HELOC, works like a credit card, but is secured by your home. You’re able to borrow up to a certain limit, repay some or all of what you took out, then do it again as needed. The lender uses your home’s value to set the HELOC limit.

You may borrow during a draw period that lasts for several years and pay interest only on the balance. After the draw period ends, you can’t take any more money out, and you'll pay back the principal plus interest.

HELOCs offer flexibility. Many have variable rates, so your monthly payment could increase over time.

» MORE: Best HELOC lenders

Home equity loans

If you know exactly how much you need to borrow, you might consider a home equity loan, which you receive as a lump sum and pay back at a fixed rate.

Home equity loan rates are generally higher than cash-out refinance interest rates, but you can keep your existing rate on your primary mortgage.

» MORE: Best home equity loan lenders

More from NerdWallet

Last updated on April 2, 2025

Methodology

The star ratings on this page reflect each lender's rating for cash-out refinancing. We scored the category and chose lenders for this page using the following methodology:

NerdWallet reviewed more than 40 mortgage lenders, including the majority of the largest U.S. mortgage lenders by annual loan volume (measured among lenders with at least a 1% market share), lenders with significant online search volume and those that specialize in serving various audiences across the country.

All reviewed mortgage lenders that offer cash-out refinancing were evaluated based on (1) cash-out refinance loan volume, (2) cash-out refinance origination fees, (3) their rate transparency and (4) the ease of their online application. The highest scoring lenders appear on this page.

NerdWallet solicits information from reviewed lenders on a recurring basis throughout the year. All lender-provided information is verified through lender websites and interviews. We also utilized 2023 HMDA data for origination volume, origination fee, average interest rate and share-of-product data.

To recap our selections...

NerdWallet's Best Cash-Out Refinance Lenders of August 2025

Rocket Mortgage, LLC: Best for cash-out refinances overall
Navy Federal: Best for active military and veterans
PenFed: Best for credit union experience
U.S. Bank: Best for overall mortgage experience
PNC Bank: Best for traditional lending experience
Pennymac: Best for rate transparency
loanDepot: Best for highly rated mobile app
Network Capital: Best for fast closings
Citibank: Best for traditional lending experience
Carrington: Best for low average interest rates
AmeriSave: Best for FHA loans

About the authors

Abby Badach Doyle

Lead Writer & Content Strategist

Abby Badach Doyle is a home and mortgages writer for NerdWallet. Her work has been featured in outlets such as The Associated Press and The Washington Post. She is passionate about making homebuying less stressful — especially for first-time buyers. Abby is based in Pittsburgh, a city known for its neighborly spirit.

Published in:

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Kate Wood

Lead Writer/Spokesperson

Kate Wood joined NerdWallet in 2019 as a writer on the homes and mortgages team. Her work on homebuying, renovation and FHA loans has been featured by USA Today, Yahoo, MSN and The Associated Press, among others. Kate previously wrote about home remodeling, decor and maintenance for This Old House magazine. With degrees in sociology from Vassar College and the University of California, San Diego, Kate is passionate about issues like housing inequality. Email: <a href="mailto:[email protected]">[email protected]</a>

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About the editor

Jeanette Margle

Head of Content, Home Loans

Jeanette Margle leads the Home content team at NerdWallet. Previously, she was an editor on NerdWallet's Travel Rewards team, and spent three years as an editor at Upgraded Points while self-employed as an editor and writing coach. Her writing has appeared on HuffPost. A lifelong Texan, Jeanette earned bachelor's degrees in journalism and Plan II Honors from the University of Texas at Austin, and has a Master of Education from the University of Houston.

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