BEST OF

Best Cash-Out Refinance Lenders of 2022

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. Our top picks include both all-digital online specialists and banks for in-person service.

Apr 11, 2022

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A cash-out refinance could be right for you if you need money for home repairs or renovations, or if you want to consolidate high-interest debt. The process involves refinancing your home for more than you owe on the existing mortgage. You get the difference to use on whatever you need. It can be a helpful way to tap your home's equity for major expenses.

Your options for cash-out refinance lenders are extensive, from all-digital outfits with speedy online applications to major banks with branches nationwide for in-person service.

To help you narrow down your choices, NerdWallet has picked some of the best cash-out refinance lenders in several categories so you can quickly determine the right one for you.

Best Cash-Out Refinance Lenders

Rocket Mortgage, LLC
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at Rocket Mortgage, LLC

Rocket Mortgage, LLC: NMLS#3030

4.0

NerdWallet rating 
Rocket Mortgage, LLC

Min. credit score

620

National / regional

National
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at Rocket Mortgage, LLC


Why we like it

Good for: borrowers who appreciate a fully digital home loan experience with mortgage rates lower than other lenders’.

Pros

  • Streamlined online process with document and asset retrieval capabilities, as well as the ability to edit your preapproval letter.

  • Mortgage interest rates are on the low side compared to other lenders, according to the latest federal data.

  • Offers the option to work with loan officers by phone if desired.

Cons

  • Getting a customized interest rate requires a credit check, which can affect your credit score.

  • Doesn't offer home equity loans or lines of credit.

  • Origination fees are on the high side compared with other lenders, according to the latest federal data.

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NASB
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at NASB

NASB: NMLS#400039

5.0

NerdWallet rating 
NASB

Min. credit score

620

Min. down payment

3%
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at NASB


Why we like it

Good for: active military members and veterans and first-time home buyers.

Pros

  • Devotes much of its business to serving military families with VA loans.

  • Offers a mortgage tailored to self-employed borrowers.

  • Offers low rates and fees compared with other lenders, according to the latest federal data.

Cons

  • Doesn’t offer home improvement mortgages.

  • Doesn't offer home equity loans or lines of credit.

Read Full Review
NBKC
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at NBKC

NBKC: NMLS#409631

5.0

NerdWallet rating 
NBKC

Min. credit score

620

Min. down payment

3%
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at NBKC


Why we like it

Good for: borrowers who want low rates and fees and an online experience with phone support. VA loans are an emphasis.

Pros

  • 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.

Cons

  • HELOCs and construction-to-permanent loans are available only in the Kansas City metro area.

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Bethpage Federal Credit Union
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at Bethpage Federal Credit Union

Bethpage Federal Credit Union: NMLS#449104

4.0

NerdWallet rating 
Bethpage Federal Credit Union

Min. credit score

620

Min. down payment

3%
Learn more

at Bethpage Federal Credit Union


Why we like it

Bethpage has a good selection of loan options but no USDA mortgages or renovation loans. And while it offers multiple online conveniences, you have to contact the lender for customized rates.

Pros

  • Offers a full array of online conveniences, including loan process updates.

  • Offers financing for cooperatives, a type of home that’s common on the East Coast.

  • Sample mortgage rates available for a variety of loan products.

Cons

  • In-person service available only in Queens and on Long Island, New York.

  • USDA loans are not available.

  • Customized rates not available online.

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BNC National Bank
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at BNC National Bank

BNC National Bank: NMLS#418467

4.0

NerdWallet rating 
BNC National Bank

Min. credit score

640

Min. down payment

3%
Learn more

at BNC National Bank


Why we like it

BNC National Bank offers a robust variety of loans, but you have to reach out to a loan officer to get customized interest rates.

Pros

  • Offers a wide variety of loan types and products.

  • Has robust online capabilities, and an app for iOS and Android.

  • Mortgage interest rates are lower than typical, according to the latest data.

Cons

  • Has a limited number of physical mortgage offices.

  • No rate information is available without starting an application or speaking with a loan officer.

  • Does not offer home equity loans or lines of credit.

Read Full Review
Northpointe
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at Northpointe

Northpointe: NMLS#447490

4.0

NerdWallet rating 
Northpointe

Min. credit score

620

Min. down payment

5%
Learn more

at Northpointe


Why we like it

Good for: those seeking an abundance of loan offerings, including a no-down-payment mortgage that helps accelerate home equity accumulation.

Pros

  • A full slate of loan offerings.

  • Offers a no-down-payment loan with a shorter repayment term that helps accelerate home equity accumulation.

  • Digital conveniences include a mobile app.

Cons

  • You’ll need to provide contact information or speak to a loan officer for customized mortgage rates.

  • Origination fees are on the high side, according to the latest data.

Read Full Review
Network Capital
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at Network Capital

Network Capital: NMLS#11712

4.0

NerdWallet rating 
Network Capital

Min. credit score

620

Min. down payment

3%
Learn more

at Network Capital


Why we like it

Good for: borrowers looking for a lender with online convenience and mortgage banker assistance.

Pros

  • A good selection of loan products, including government-backed FHA and VA mortgages.

  • Provides “same-as-cash” loan that allows borrowers to compete with cash offers.

  • Online application process is clear and simple to follow.

Cons

  • Doesn't lend in all states.

  • Website doesn’t provide customized mortgage rates.

  • Lender fees are on the high side, according to the latest federal data.

Read Full Review

SoFi: NMLS#1484615

4.5

NerdWallet rating 
SoFi

Min. credit score

N/A

Min. down payment

N/A

Why we like it

Good for: borrowers seeking an entirely digital application process for conventional purchase mortgages or refinancing.

Pros

  • Borrowers with an existing loan or investment account from SoFi may qualify for a $500 discount on mortgage fees.

  • Mortgage rates tend to be on the low side, according to the latest federal data.

  • Offers jumbo loans with a minimum down payment of 10%.

Cons

  • Does not offer government-backed loans, such as FHA or VA.

  • Requires users to create an account to see customized mortgage rates.

  • SoFi conforming mortgages are unavailable in Hawaii.

Read Full Review

Chase: NMLS#399798

4.0

NerdWallet rating 
Chase

Min. credit score

620

National / regional

National

Why we like it

Good for: borrowers who want a wide selection of loan products, an in-person experience and comparatively low interest rates.

Pros

  • Carries a wide variety of mortgage types and products, including DreaMaker and Standard Agency mortgages, with down payments as low as 3%.

  • Offers low rates compared with other lenders, according to the latest federal data.

  • Offers a customizable mortgage calculator for personalized rate and payment estimates.

Cons

  • Doesn't offer home improvement loans, such as FHA 203(k) and HomeStyle.

  • You have to speak with a home loan adviser to complete the application.

  • Home equity lines of credit (HELOC) are currently unavailable.

Read Full Review

More of NerdWallet's best cash-out refinance lenders

Best for refinancing overall

Best for digital convenience

Best for credit union lending

Best for traditional lending experience

Best for credit union lending

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. Though cash-out refinance rates tend to be higher than rates for purchase loans, 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, a home equity line of credit or a home equity 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.

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.

HELOCs

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.

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 from NerdWallet

Last updated on April 11, 2022

Methodology

The star ratings on this page reflect each lender's rating for refinance products. Read more about how we determine those ratings.

The lenders on this page are chosen using this methodology:

NerdWallet reviewed nearly 60 mortgage lenders, including the majority of the largest U.S. mortgage lenders by annual loan volume (lenders had to have at least a 1% market share), lenders with significant online search volume and those that specialize in serving various audiences across the country.

For inclusion on this roundup, lenders must score a 4.0 or above for refinance products and dedicate at least 15% of their business to cash-out refinance.

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 2020 HMDA data for origination volume, origination fee, rate spread and share-of-product data.

To recap our selections...

NerdWallet's Best Cash-Out Refinance Lenders of 2022