Compare Cash-Out Refinance Lenders
A cash-out refinance replaces your existing mortgage with a new home loan for more than you owe on your house. Apply to these cash-out refinance lenders and see rates and how much you qualify for.
- How does cash-out refinance work?
With a cash-out refinance, you take out a new mortgage that's for more than you owe on your existing home loan, but less than your home's current value. You'll receive the difference between the new amount borrowed and the loan balance at closing.
- How do you get the best cash-out refinance rate?
Shop around with multiple lenders to compare cash-out refinance rates. You may also be able to buy points to bring down your refinance interest rate. While you're comparing lenders, be sure to also check the costs and fees associated with getting the refinance. These don't affect your rate, but fewer added fees will lower your closing costs.
- How much cash can I get with a cash-out refinance?
Lenders will limit the cash you take out to 80% to 90% of your home equity. An appraisal will be required to nail down your home’s current market value.
» MORE: Calculate your refinance savings
NerdWallet's Compare Cash-Out Refinance Lenders
Frequently asked questions
- How do I compare top home loan lenders?
To select the top home loan lender for you, you should first determine what kind of loan you need. Then consider what you’re looking for in a lender. Do you need a lender with the latest online capabilities? Is face-to-face interaction important to you? Are you researching home loan lenders that cater to first-time buyers? There are arguably more loan options and lenders today than ever before. The marketplace is made up of large, traditional lenders such as Chase and Bank of America; regional lenders such as SunTrust; small, local banks; credit unions such as Navy Federal; and even mortgage brokers acting as middlemen, looking all over to find you the best deal. Once you’ve decided what you need in a lender, contact several lenders at around the same time to get the most accurate comparison of interest rates and fees.
- What’s the point of shopping multiple lenders?
Mortgage borrowers waste thousands of dollars each year by not shopping around for more than one offer. Compare offers from at least three lenders when applying for a home loan. Even a slight difference in interest can save or cost you big money over the life of your loan. By applying to several lenders, you can compare the all-in cost of each offer to see the best deal. There’s more that goes into shopping for the best loan than the lowest rate, but that doesn’t mean it’s not important. Comparing fees alongside the interest rate will provide a good indication of the loan’s costs both upfront and over the long term.
- Why is getting preapproved for a home loan so important?
Taking the time to get a preapproval letter before you start shopping for homes is essential in today’s market. Showing a seller your preapproval letter can put you way ahead of the competition. Why? It’s proof to the seller that a lender has evaluated your finances and calculated how much house you can afford.
Here’s a list of the information you’ll have to provide to a lender to get preapproved:
Social Security numbers for all borrowers
Banking, savings, checking and investment account statements
A list of your monthly outstanding debts, including credit cards, car loans, student loans and more
Two years of tax returns
Salary and employer information
Your down payment amount and where the money is coming from
If you’re ready to move forward, the home loan lenders above all offer mortgage preapprovals.
