Best Cash-Out Refinance Lenders
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Min. credit score
National / regional
Best for low cash-out refinance origination fees
Golden 1 Credit Union: NMLS#669333
Best for California residents
New American Funding: NMLS#6606
Best for digital convenience
Guaranteed Rate: NMLS#2611
Best for rate transparency
Best for cash-out refinance loan volume
- Offers government-backed loans and some harder-to-find products, such as construction loans and specialty mortgages for pilots.
- Offers low rates and fees compared with other lenders, according to the latest federal data.
- Displays customized rates, with fee estimates, without requiring contact information.
- HELOCs and construction-to-permanent loans are available only in the Kansas City metro area.
- Offers a variety of purchase and refinance loans, including jumbo mortgages.
- Has a preferred real estate agent program that can save a borrower money on closing costs.
- Offers some flexibility on guidelines for loan qualification.
- Does not offer VA or USDA loans.
- Products available only to California residents.
- Offers a wide variety of purchase and refinance mortgages with an emphasis on helping underserved communities.
- Its home equity line of credit can be used for an owner-occupied or second home.
- Offers a program to enable buyers to make cash offers.
- Mortgage origination fees tend to be on the high end, according to the latest federal data.
- Displays detailed sample rates for many of its loan products.
- Offers a wide variety of loans, including jumbo and interest-only products.
- Offers low rates compared with other lenders, according to the latest federal data.
- Doesn't offer home equity loans.
- Offers multiple low-down-payment loan programs.
- May consider alternative credit data, such as bank statements.
- You can view customized rates for purchasing a home and apply online.
- Doesn't offer home equity lines of credit.
- Lender fees are on the high side, according to the latest federal data.
- Low- or no-down-payment options with no mortgage insurance.
- Offers a home equity line of credit, or HELOC.
- Mortgages are available for non-warrantable condominiums.
- Doesn't offer government-backed mortgages, like FHA or VA loans.
- Mortgage origination fees are on the high side, according to the latest federal data.
- Offers a program allowing qualifying buyers to make cash offers.
- Makes it easy to see customized mortgage rates.
- Average interest rates are on the low end compared to other lenders, according to the latest federal data.
- Doesn’t offer USDA loans.
- VA loans are not available in every state.
- Doesn't offer home equity loans.
- Sample rates clearly posted for various loan products.
- Offers a wide variety of loan types and products.
- Mortgage rates tend to be on the low side compared with other lenders, according to the latest federal data.
- Home loans business is broadly focused on bank customers.
- Doesn’t offer home improvement loans, or home equity loans or lines of credit.
- Scandals and government actions have damaged consumer trust in recent years.
- Offers a complete suite of online mortgage application tools and loan tracking.
- Sample rates are easy to find on the website.
- Offers a wide variety of loan options, including construction loans and programs for doctors.
- Customized rates aren't available online without starting an application.
- For borrowers who prefer to apply in person, branches are limited mostly to the South and East.
- Offers a full line of conventional and government loan products.
- Provides home equity loans and lines of credit.
- Allows borrowers to apply and track their loan's progress online.
- No personalized mortgage rates available online.
- Published mortgage rates assume an above-average credit score.
- Offers a wide range of loan types and products, including FHA, VA and USDA.
- Borrowers can apply and track loan status online.
- Offers customized online rate quotes with monthly payment estimates, including mortgage insurance, when applicable.
- Home equity loans are geographically limited.
- Origination fees are on the high side compared with other lenders, according to the latest federal data.
- Posts current mortgage rates on its website.
- Has an online application for mortgage preapproval and a digital tool to track application progress.
- Offers several affordable loan options, including FHA, VA, USDA and the PNC Community Loan.
- Doesn't offer renovation mortgages.
- In-person service is not available in every state.
- Offers purchase, refinance and jumbo mortgages, plus loans for second homes and home equity products.
- Provides customized rate and fee quotes without requiring contact information.
- No FHA, VA or USDA mortgages.
- Loans are available only in California.
How does a cash-out refinance work?
With a cash-out refinance, you're getting a new loan that's for more than you owe on your current mortgage. The difference between your new loan amount and what's owed is where you get the "cash out." How much cash depends upon your home equity — how much your home is worth compared to how much you owe.
Say your home is valued at $200,000 and your mortgage balance is $100,000, giving you $100,000 of equity in your home. You could refinance your $100,000 loan balance for $150,000 and receive $50,000 in cash at closing.
You'll need an appraisal to find out how much you can borrow, and most lenders will require you to maintain at least 20% equity in your home. Many people use the cash from a cash-out refinance to fund home improvements, education expenses or debt consolidation.
Pros of a cash-out refinance
Potentially lower interest rate. Cash-out refinance rates tend to be higher than rates for purchase loans, but you might still end up with a lower interest rate if mortgage rates were higher when you originally bought your home. (However, if you only want to lock in a lower interest rate on your mortgage and don’t need the cash, a rate and term refinance makes more sense.)
Just one loan. Since it's a refinance, you'll be dealing with one loan payment per month. Other ways of leveraging home equity require a second mortgage.
Access to more funds. Cash-out refinances are helpful with major expenses, because you generally can borrow much more than you could with a personal loan or by using credit cards.
Cons of a cash-out refinance
Foreclosure risk. Because your home is the collateral for any kind of mortgage, you risk losing it if you can’t make the payments. If you do a cash-out refinance to pay off credit card debt or finance college tuition, you'll be paying off unsecured debt with secured debt — a move that's generally discouraged because of the possibility of losing your home.
Potentially higher interest rate. If your current home loan has a lower interest rate, you may think twice before refinancing. In that case, a second mortgage such as a home equity loan or line of credit could be a more appealing option.
New terms. Your new mortgage will have different terms from your original loan. Double-check your interest rate and fees before you agree to the new terms. Also, take a look at the total interest you'd pay over the life of the loan. Assuming you're refinancing into a new 30-year mortgage, that could add years of repayment — possibly piling on a substantial amount of interest, even if you've lowered your rate.
Time-consuming. You're getting a new mortgage, and while you won't jump through all the hoops of a purchase loan, underwriting can still take weeks. If you need funds urgently — say your leaky roof is causing serious water damage and needs replacing ASAP — refinancing may not be your best bet.
Costs. You’ll pay closing costs for a cash-out refinance, as you would with any refinance. This can take a big bite out of the cash you'll receive at closing. And if you borrow more than 80% of your home's value, you'll have to pay for private mortgage insurance.
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.
A HELOC works like a credit card: 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 may no longer take money out, and you pay the principal plus interest.
HELOCs offer flexibility, but because many have variable rates, your monthly payment may increase over time.
» MORE: Best HELOC lenders
Home equity loans
If you know exactly how much you need to borrow, you may consider a home equity loan, which you receive as a lump sum and pay back at a fixed rate.
» MORE: Best home equity loan lenders
More from NerdWallet
Last updated on January 3, 2023
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 50 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 2021 HMDA data for origination volume, origination fee, average interest rate and share-of-product data.
NerdWallet's Best Cash-Out Refinance Lenders of 2023
- NBKC: Best for low cash-out refinance origination fees
- Golden 1 Credit Union: Best for California residents
- New American Funding: Best for digital convenience
- Guaranteed Rate: Best for rate transparency
- Carrington: Best for cash-out refinance loan volume
- Alliant: Best for credit union lending
- Better: Best for rate transparency
- Wells Fargo: Best for ease of application
- Truist: Best for ease of application
- US Bank: Best for ease of application
- Flagstar: Best for digital convenience
- PNC: Best for digital convenience
- San Diego County Credit Union: Best for California residents