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Best Cash-Out Refinance Lenders of 2024

If you're interested in accessing your home equity with a cash-out refinance, we'll help you choose the best cash-out refi lender.

Kate Wood
By
Last updated on January 5, 2024
Edited by
✅ Fact checked and reviewed
Johanna Arnone
Edited by
✅ Fact checked and reviewed

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Best Cash-Out Refinance Lenders

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Lender
NerdWallet Rating
Min. credit score
National / regional
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NBKC

NBKC: NMLS#409631

Top 3 most visited 🏆
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at NBKC
at NBKC
Cash-out refinancing
Best for rate transparency

660

National

Rocket Mortgage, LLC

Rocket Mortgage, LLC: NMLS#3030

5.0
/5
Cash-out refinancing
Best for ease of application

620

National

Navy Federal

Navy Federal: NMLS#399807

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on NerdWallet
5.0
/5
Cash-out refinancing
Best for military borrowers

N/A

National

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on NerdWallet
Andrews Federal Credit Union

Andrews Federal Credit Union: NMLS#410421

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on NerdWallet
5.0
/5
Cash-out refinancing
Best for rate transparency

N/A

National

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on NerdWallet
PenFed

PenFed: NMLS#401822

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on NerdWallet
5.0
/5
Cash-out refinancing
Best for lower origination fees

620

National

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on NerdWallet
NBKC
Learn more
at NBKC
at NBKC
NBKC

NBKC: NMLS#409631

5.0
Cash-out refinancing
NerdWallet rating
Min. credit score

660

National / regional

National

Why We Like ItGood for: borrowers who want a user-friendly online application with phone support. VA loans are an emphasis.
Pros
  • Displays customized rates, with fee estimates, without requiring contact information.
  • Efficient customer service over the phone or through online chat.
Cons
  • Physical branches are limited to the Kansas City metro area.
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Rocket Mortgage, LLC
Learn more
at Rocket Mortgage, LLC
at Rocket Mortgage, LLC
Rocket Mortgage, LLC

Rocket Mortgage, LLC: NMLS#3030

5.0
Cash-out refinancing
NerdWallet rating
Min. credit score

620

National / regional

National

Why We Like ItGood for: borrowers who appreciate a fully digital refinance experience.
Pros
  • Streamlined online process with document and asset retrieval capabilities.
  • Often ranks high in customer satisfaction surveys.
Cons
  • Getting a customized interest rate requires a credit check, which can affect your credit score.
  • Origination fees are on the high side compared with other lenders, according to the latest federal data.
Navy Federal
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on NerdWallet
Navy Federal

Navy Federal: NMLS#399807

5.0
Cash-out refinancing
NerdWallet rating
Min. credit score

N/A

National / regional

National

Why We Like ItGood for: military borrowers looking for a lender that offers strong customer support.
Pros
  • Offers a high loan-to-value option for cash-out refinancers with limited equity.
  • Gets above-average marks for customer satisfaction.
Cons
  • Borrowers must join the credit union before applying for a refinance, making it tougher to compare interest rate quotes.
Andrews Federal Credit Union
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Andrews Federal Credit Union

Andrews Federal Credit Union: NMLS#410421

5.0
Cash-out refinancing
NerdWallet rating
Min. credit score

N/A

National / regional

National

Why We Like ItGood for: borrowers in the Mid-Atlantic looking for a lender with deep roots in their local communities.
Pros
  • Offers a free float-down option for rate locks on conventional refinances.
  • Provides extra support for military borrowers, including branches near bases in Germany, Belgium and the Netherlands.
Cons
  • Physical branches in the U.S. are limited to Maryland, New Jersey, Virginia and Washington, D.C.
PenFed
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PenFed

PenFed: NMLS#401822

5.0
Cash-out refinancing
NerdWallet rating
Min. credit score

620

National / regional

National

Why We Like ItGood for: homeowners who prize low refinance rates and fees and prefer working with an easy-to-join credit union.
Pros
  • Cash-out refinance rates and fees are low compared with other lenders, according to the latest data.
  • Open membership charter means anyone is eligible to join the credit union.
Cons
  • Borrowers cannot see customized mortgage rates without providing contact information.
Alliant
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Alliant

Alliant: NMLS#197185

5.0
Cash-out refinancing
NerdWallet rating
Min. credit score

N/A

National / regional

National

Why We Like ItGood for: refinancers who want to work with a credit union and prefer a digital application process.
Pros
  • Lower than average interest rates, according to the latest federal data.
  • Sample interest rates and fees are readily available on the lender's website.
Cons
  • Membership is contingent on belonging to or joining a partner organization, or living in an eligible Chicago-area community, though borrowers do not have to become members until closing.
Truist
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Truist

Truist: NMLS#399803

5.0
Cash-out refinancing
NerdWallet rating
National / regional

National

Min. credit score

620

Why We Like ItGood for: refinancers looking for lower-than-average rates on conventional loans.
Pros
  • Cash-out refinance rates are lower than industry average, according to the latest federal data.
  • Offers an online application, document upload and mobile app.
Cons
  • Customized rates aren't available online without contacting the lender.
  • For borrowers who prefer to apply in person, branches are limited mostly to the South and East.
  • Refinances are not available in Alaska, Arizona or Hawaii.
US Bank
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US Bank

US Bank: NMLS#402761

5.0
Cash-out refinancing
NerdWallet rating
Min. credit score

N/A

National / regional

National

Why We Like ItGood for: homeowners looking to refinance government loans.
Pros
  • Offers a full line of conventional and government loan refinance products.
  • Allows borrowers to apply and track their loan's progress online.
  • Has a highly-rated mobile app.
Cons
  • Sample refinance rates available online, but aren't customizable.
  • Online chat is not available, and we struggled to reach customer service by phone.
PNC
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PNC

PNC: NMLS#446303

5.0
Cash-out refinancing
NerdWallet rating
National / regional

National

Min. credit score

620

Why We Like ItGood for: borrowers looking for non-traditional cash-out options.
Pros
  • Offers a Combination Loan Refinance, which combines a rate-and-term refinance with a home equity line of credit.
  • Has lower-than-average cash-out refinance interest rates, according to the latest data.
Cons
  • You’ll have to create an account or supply personal data to get customer service over the phone.
  • In-person service is not available in every state.
San Diego County Credit Union
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San Diego County Credit Union

San Diego County Credit Union: NMLS#580585

5.0
Cash-out refinancing
NerdWallet rating
National / regional

Regional

Min. credit score

620

Why We Like ItGood for: Californian homeowners who want to shop refinance rates online.
Pros
  • Interest rates are notably low, according to the latest federal data.
  • Provides customized rate and fee quotes without requiring contact information.
Cons
  • 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." The amount of cash you can get 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 determine your home's current value. If your home has increased in value since you bought it, you may have more equity than what you've accrued from paying down your principal. 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 large-scale home improvements, education expenses or debt consolidation.

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

Pros of a cash-out refinance

Potentially lower interest rate. Cash-out refinance rates tend to be higher than rates for purchase loans. But if mortgage rates were higher when you originally bought your home, a cash-out refinance could result in a lower interest rate. 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. While cash-out refinance interest rates are often higher than rates for other types of mortgages, they're generally lower than the interest rate you'd get with a personal loan or a credit card.

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 mortgage rates have increased since you bought your home, you may think twice before refinancing. With a cash-out refi in a rising rates environment, you'd be moving to a larger loan with a higher interest rate. In that case, a second mortgage such as a home equity loan or line of credit could be a more appealing option. With a second mortgage, you don't touch the interest rate on your primary loan.

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. Usually between 2% and 6% of your principal amount, this can take a big bite out of the cash you'll receive at closing.

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: 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.

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. Home equity loan rates are generally higher than cash-out refinance interest rates, but since you'll likely borrow a smaller amount than you would with a cash-out refi, the math may still be in your favor.

More from NerdWallet

Last updated on January 5, 2024

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 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 2022 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 2024

  • NBKC: Best for rate transparency
  • Rocket Mortgage, LLC: Best for ease of application
  • Navy Federal: Best for military borrowers
  • Andrews Federal Credit Union: Best for rate transparency
  • PenFed: Best for lower origination fees
  • Alliant: Best for credit union lending
  • Truist: Best for ease of application
  • US Bank: Best for traditional lending experience
  • PNC: Best for cash-out refinances overall
  • San Diego County Credit Union: Best for California borrowers
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