Best Mortgage Refinance Lenders of December 2023
If you're interested in refinancing your mortgage to get a lower rate or achieve another financial goal, check out our list of some of the best refinance lenders.
Some or all of the mortgage lenders featured on our site are advertising partners of NerdWallet, but this does not influence our evaluations, lender star ratings or the order in which lenders are listed on the page. Our opinions are our own. Here is a list of our partners.
Low interest rates compelled many homeowners to refinance their mortgages in recent years, but even in a higher interest rate environment you could find yourself wanting to refinance.
Whether you want to refinance to cash out some of your home equity or change your loan type, NerdWallet has picked some of the best refinance lenders in a variety of categories so you can determine which one is right for you.
Best Mortgage Refinance Lenders
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5.0 /5 | 620 | National | ||
5.0 /5 | 620 | Regional | Learn moreat SoFi at SoFi | |
 Rocket Mortgage, LLC: NMLS#3030 Top 3 most visited 🏆 Learn moreat Rocket Mortgage, LLCat Rocket Mortgage, LLC | 5.0 /5 | 620 | National | Top 3 most visited 🏆 Learn moreat Rocket Mortgage, LLCat Rocket Mortgage, LLC |
5.0 /5 | 620 | National | Top 3 most visited 🏆 Learn moreat Pennymacat Pennymac | |
5.0 /5 | 620 | National | Learn moreat Guaranteed Rate at Guaranteed Rate | |
 Bethpage Federal Credit Union: NMLS#449104 Learn moreat Bethpage Federal Credit Union at Bethpage Federal Credit Union | 5.0 /5 | 620 | National | Learn moreat Bethpage Federal Credit Union at Bethpage Federal Credit Union |
- 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.
- 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%.
- 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.
- 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.
- Getting a customized interest rate requires a credit check, which can affect your credit score.
- Doesn't offer home equity lines of credit.
- Origination fees are on the high side compared with other lenders, according to the latest federal data.
- Offers a wide variety of loan products, including government-backed and refinance options.
- Displays custom rate quotes based on home value, down payment or equity, ZIP code and credit score range.
- “Lock & Shop” lets you secure a rate for up to 60 days, even if you don’t have a purchase contract yet.
- Origination fees are on the higher end, according to the latest federal data.
- Doesn't offer home equity lines of credit or renovation loans.
- Offers a one-day mortgage approval process.
- Offers a generous selection of loans, including government-backed, interest-only, ITIN, jumbo, and renovation loans.
- Advertises a HELOC that can be funded in as few as five business days.
- Receives high marks for customer satisfaction, according to J.D. Power and Zillow.
- Origination fees are higher than average, according to the latest federal data.
- HELOC has a relatively short draw period, which may not provide flexibility for someone who wants the option of accessing home equity over a longer period.
Bethpage Federal Credit Union: NMLS#449104
620
National
- 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.
- In-person service available only in Queens and on Long Island, New York.
- USDA loans are not available.
- Customized rates not available online.
- Posts current mortgage rates on its website.
- Offers several affordable loan options, including FHA, VA, USDA and the PNC Community Loan.
- Receives high marks for customer satisfaction, according to J.D. Power and Zillow.
- Doesn't offer renovation mortgages.
- In-person service is not available in every state.
- Offers unique loan options aimed at military borrowers, such as a proprietary loan called Military Choice that works as an alternative to VA loans.
- 24/7 customer service supports borrowers stationed overseas.
- Offers home equity loans and lines of credit.
- Borrowers must join the credit union before applying for a mortgage.
- The lender does not offer renovation or construction loans.
- When we tried their customer service line, we sometimes waited longer than 10 minutes before being connected with a representative who could answer our questions.
- Multiple loans for those who are renovating or building a home, including loans with interest-only payments during construction.
- Offers home equity loans and lines of credit.
- Offers down payment assistance and loans for underserved borrowers, including ITIN loans and loans with flexible qualifications in certain communities.
- Interest rates are on the low side relative to other lenders, according to the latest federal data.
- Borrowers can enter their information (including their desired loan amount, down payment and zip code) into the lender’s Mortgage Quote Comparison tool and receive a customized rate quote.
- Home equity loans are not available in all locations served by Flagstar.
- In 2022, the lender was fined for violating laws regarding properties in flood zones.
- Offers down payment and closing cost assistance programs.
- May give existing customers a discount on mortgage lender origination fees and HELOC interest rates.
- Receives high marks for customer satisfaction, according to J.D. Power and Zillow.
- Doesn't offer renovation loans that roll costs into a mortgage.
- Offers a selection of low-down-payment options for first-time home buyers and HELOCs.
- Offers a rate lock with a fully underwritten preapproval when you're still shopping for a home.
- Mortgage rates and fees are low compared with other lenders, according to the latest data.
- Borrowers cannot see customized mortgage rates without providing contact information.
- Does not offer harder-to-find mortgages, such as construction, ITIN or USDA loans.
San Diego County Credit Union: NMLS#580585
Regional
620
- 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.
- 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.
- Has a robust digital experience and mobile app.
- Offers a 45-day rate lock option.
- Requires a call or email for personalized rates.
- Does not offer home equity loans or lines of credit, or home improvement loans.
- VA loans are the bulk of USAA’s business, so it knows the ins and outs of eligibility.
- Offers a conventional home loan with low down payment for first-time buyers.
- Mortgage interest rates are on the low side compared with other lenders, according to the latest federal data.
- Doesn’t offer FHA or USDA loans, or second mortgages.
- Limited mortgage rate information is on the USAA website. For customized rates, you'll have to make contact.
Why refinance your mortgage?
There are multiple reasons to refinance your mortgage. People usually refinance to save money, either in the short run or the long run, and sometimes to borrow against their equity. Here are some of the main reasons to refinance:
To get a lower mortgage rate. If mortgage interest rates fall after you get the loan, you may be able to refinance to a lower rate. This can result in smaller monthly payments.
To shorten the term. Refinancing from a 30-year mortgage to a shorter-term loan (15 or 20 years, most commonly) might increase your monthly payment even with a lower interest rate. However, it decreases the overall interest you pay over the life of the loan.
To get rid of mortgage insurance. When you buy a home with a conventional loan and a down payment of less than 20%, you have to pay for mortgage insurance. Refinancing is one way to stop paying private mortgage insurance, and it's the only way to get rid of FHA mortgage insurance.
To replace an adjustable-rate mortgage, or ARM, with a fixed-rate loan. Rather than enduring the uncertainty of annual interest-rate adjustments with an ARM, you might refinance to a fixed-rate loan so you don't have to worry that the rate will rise.
To get your hands on equity. With a cash-out refinance, you borrow more than your current loan balance and take out the difference in cash. A cash-out refinance is a popular way to pay for home improvements.
» MORE: Compare today's refinance rates
Common refinance requirements
In order to qualify for a mortgage refinance, you will need to meet the criteria set by your lender and loan program:
Credit score. A higher credit score can help you secure the lowest refinance interest rate. Government-backed refinance loans typically have lower credit score requirements than conventional loans. With an FHA cash-out refinance, the minimum score requirement is 500, for example. With a conventional refinance, it’s at least 620. But lenders are permitted to set higher minimums if they choose.
Debt-to-income ratio. Your debt-to-income ratio is the portion of your gross income that goes to paying your debt, including your current mortgage. Many lenders require a DTI below 36%. You can refinance a mortgage with a higher DTI, but you may pay a higher interest rate.
Home equity. Your home equity is the value of your home minus what is owed on the mortgage. The amount of equity you need to refinance varies by lender and type of mortgage, but 20% equity is a common requirement.
Refinance wait period. While you can refinance as often as you want, some lenders require a “seasoning” period between loans. With a conventional cash-out refinance, for instance, you will have to wait six months. If you are refinancing an FHA, VA, or USDA mortgage, the waiting time varies between six and 12 months.
Types of mortgage refinances
Whether you’re looking to refinance a conventional or government-backed mortgage, there are generally four types of refinances:
Rate and term refinance. A rate-and-term refinance is exactly what it sounds like: you refinance your mortgage to reduce the interest rate, shorten the term of the loan, or both.
Cash-out refinance. A cash-out refinance is when you replace your mortgage with a new one for more than your current loan balance. The difference goes to the homeowner as cash that can be used for home improvements or other financial responsibilities. There are conventional, as well as FHA and VA cash-out refinancing options.
Streamlined refinance. The FHA, VA and USDA offer streamlined refinancing options that may allow you to skip the usual appraisal and credit check, saving you time and money. The FHA streamline and VA IRRRL both require that the refinancing result in a financial benefit: either a reduction in your monthly payment or interest rate.
Renovation refinance. A renovation refinance loan works somewhat like a cash-out refinance, in that you take out a larger loan than what you previously owed. The proceeds from the refi go toward fixing up your home. With some renovation refinances, like the FHA 203(k) loan, the lender actually directly pays your contractor. Renovation refinances sometimes allow you to borrow against the value of the home once the upgrades are completed rather than its current value.
Choosing a refinance lender
Whether you’re looking for the reach of a traditional bank or the personalized service of a credit union, always shop multiple lenders and compare the interest rate and terms each lender offers. Even though it might be easy to refinance with your current mortgage lender, it may not offer the best deal.
Everything can be negotiated. Your lender is required to provide you with a Loan Estimate after you apply to refinance. Compare fees listed under the "origination charges" on the document. If you are not comfortable with a fee, negotiate for it to be removed or reduced.
What is the real cost of your new mortgage going to be? Look at the annual percentage rate, or APR. This number covers all the costs of the mortgage including the interest rate and fees.
More from NerdWallet
Last updated on November 3, 2023
Methodology
The star ratings on this page reflect each lender's performance in NerdWallet’s refinance category. 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 more than one refinance product were evaluated based on (1) the portion of their business dedicated to refinance lending, (2) their 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 data from the Home Mortgage Disclosure Act (HMDA) for origination volume, origination fee, rate spread and share-of-product data.
NerdWallet's Best Mortgage Refinance Lenders of December 2023
- NBKC: Best for rate transparency
- SoFi: Best for digital convenience
- Rocket Mortgage, LLC: Best for variety of refi types
- Pennymac: Best for rate transparency
- Guaranteed Rate: Best for variety of refi types
- Bethpage Federal Credit Union: Best for digital convenience
- PNC: Best for variety of refi types
- Navy Federal: Best for military borrowers
- Flagstar: Best for rate transparency
- Bank of America: Best for customer satisfaction
- PenFed: Best for low origination fees
- San Diego County Credit Union: Best for California borrowers
- US Bank: Best for ease of application
- Mr. Cooper: Best for digital convenience
- USAA: Best for military borrowers
Frequently asked questions
- Should I refinance my mortgage?
There are multiple reasons to refinance your mortgage. Saving money is a big one: Getting a lower rate brings down your monthly payments, while shortening the term means you'll pay less total interest. A mortgage refinance calculator can help you see how much you'll save and when you'll break even.
- Is it cheaper to refinance with your current lender?
Not necessarily. Even though it might be easy to refinance with your current mortgage lender, it may not offer the best deal. Shop at least three mortgage refinance lenders and compare the interest rate and terms each lender offers.
- Who has the best refinance rates right now?
Refinance rates are in constant flux and vary based on economic trends, like job growth and inflation. But the rate you're offered will also depend on your individual financial situation, and factors like your credit score and the loan-to-value ratio of your refinance. Get quotes from multiple lenders to find the best refinance rates.
- How do you qualify for a refinance?
In order to qualify for a mortgage refinance, you will need to meet the criteria set by your lender and loan program. These can include income requirements, a minimum credit score, a maximum debt-to-income ratio and sufficient home equity.
- How do you refinance your mortgage?
The first step in refinancing is determining your goal. That will help you decide whether you need a rate-and-term refinance, a cash-out refinance or another type of mortgage refinance. Once you know what you're looking for, you’ll shop for a refinance lender, apply and close on your new mortgage, the same way you did when you bought the home.
- How often can you refinance a mortgage?
You can generally refinance as often as it makes financial sense to do so. There is an exception: Some lenders require "seasoning" between refinances — in other words, they require you to have the loan for a specified number of months before refinancing again.
