Refinancing your mortgage can help you improve your monthly payment and repayment terms. You can also tap your home equity to accomplish some of your financial goals with a cash-out refinance.
While mortgage interest rates are no longer near record lows, using one of the best mortgages refinance lenders can help you qualify for today’s best rates and avoid unnecessary lender fees.
Inside this article
- Best mortgage refinancing lenders
- Best overall: Bank of America
- Best for online-only applications: Better
- Best for minimum equity requirements: SoFi
- Best for no lender fees: Ally
- Best for federally-insured mortgages: Chase
- Best for military homeowners: Navy Federal Credit Union
- Best for customer service quality: Rocket Mortgage
- Compare the best mortgage refinance lenders
- Methodology
- How to qualify for a mortgage refinance
- Frequently Asked Questions
Best mortgage refinancing lenders
Best overall: Bank of America
Best for online-only applications: Better
Best for minimum equity requirements: SoFi
Best for no lender fees: Ally
Best for federally-insured mortgages: Chase
Best for military homeowners: Navy Federal Credit Union
Best for customer service quality: Rocket Mortgage
Best overall: Bank of America
4.7 stars
Interest rates: Below national average
Max DTI ratio: Does not disclose
Why it’s the best
Bank of America is the best bank for mortgage refinances in many situations as you can apply online or at one of its many branch locations nationwide. This institution also offers a wide variety of loan options including:
Fixed-rate refinance loan.
Adjustable-rate refinance loan.
FHA and VA refinance loan.
Cash-out refinance loan.
If you don’t want to replace your existing rate and term, home equity loans can be an excellent alternative to a cash-out refinance.
Additionally, Bank of America Preferred Rewards members can enjoy reduced origination fees and interest rate reductions. You qualify for this loyalty program with at least $20,000 in qualifying banking and investment balances.
Pros
Multiple refinance loan programs
Preferred Rewards relationship discounts
Online and local branch access
Cons
FHA and VA refinancing is only for existing home loan clients
Relationship discount requires a relatively high account balance
Doesn’t offer USDA loans
More details
Rates: Below the national average.
Debt-to-income (DTI) ratio: Does not disclose.
Perks: Preferred Rewards relationship discounts, FHA and VA-insured loans.
Preapproval: Receive a prequalified offer within one hour of applying.
Time to close: The typical closing timeline is from four to six weeks.
Best for online-only applications: Better
4.3 stars
Interest rates: Below national average
Max DTI ratio: 50%
Why it’s the best
Using an online-only lender can make it easier to avoid fees that brick-and-mortar lenders charge. For instance, Better.com doesn’t charge origination fees which can be as much as 1% of your loan amount.
You can apply for a rate-and-term conventional refinance or FHA mortgage refinancing. Cash-out refinancing is available too, and you may also consider a home improvement personal line of credit if you only need a short-term borrowing solution to boost your property’s curb appeal.
The lender also has a $100 Better Price Guarantee when a competitor’s loan estimate offers a lower price. You can receive the guarantee as a loan credit by refinancing with Better or as a cash payment if you choose the other lender.
Pros
No origination fees
$100 price guarantee
Fast closing times
Cons
Doesn’t offer VA or USDA-insured refinances
No physical branches
Need a minimum 700 credit score to refinance a jumbo loan
More details
Rates: Below the national average.
Debt-to-income (DTI) ratio: Up to 50%.
Perks: No origination fees, $100 Rate Match Guarantee.
Preapproval: You can be pre-approved within three minutes and will receive your loan estimate within three days of submitting your initial application.
Time to close: The average closing time is 32 days.
Best for minimum equity requirements: SoFi
4.2 stars
Interest rates: Below national average
Max DTI ratio: Does not disclose
Why it’s the best
It’s possible to refinance your mortgage through SoFi with as little as 5% minimum equity for eligible borrowers. However, private mortgage insurance (PMI) premiums can apply until your equity exceeds 20% and your loan-to-value (LTV) ratio goes below 80%.
Applicants can also automatically receive a free 45-day rate lock that helps guard against additional fees if delays occur during the closing process. In comparison, some lenders may only offer a 30-day lock without fees.
Unfortunately, SoFi doesn’t offer FHA, VA, or USDA loans. However, you can refinance government-insured loans to a conventional product to avoid ongoing fees such as mortgage insurance premiums.
The lender offers no-cash-out conventional refinances, cash-out refinancing, jumbo loans, and home equity loans. Homeowners with a jumbo loan may prefer this lender as the maximum loan limit is $3 million.
Pros
No lender fees
Dedicated one-on-one support
Free 45-day rate lock
Cons
No FHA, VA, or USDA loans
Member Rate Discount doesn’t apply to home loans
Online-only
More details
Rates: Below the national average.
Debt-to-income (DTI) ratio: Does not disclose.
Perks: No lender fees, 45-day rate lock, low minimum equity requirements.
Preapproval: The initial pre-qualification can only take a few minutes after applying.
Time to close: Does not disclose.
Best for no lender fees: Ally
3.95 stars
Interest rates: Below national average
Max DTI ratio: 50%
Why it’s the best
Ally doesn’t charge lender fees so you won’t encounter an application, origination, processing, or underwriting fees. Like other lenders, the typical third-party fees still apply such as a home appraisal and title fees.
As you can complete the entire application process online, you can submit your initial paperwork within 15 minutes to receive a personalized rate. Additionally, it’s possible to close 10 days sooner than the industry average.
You can apply for a conventional rate-and-term refinance, cash-out refinance, and jumbo loans. Sadly, this lender doesn’t offer FHA, VA, or USDA loans.
Pros
No lender fees
Quick application process
Average time to close is 10 days sooner than the industry average
Cons
Doesn’t offer FHA, VA, or USDA loans
No physical branches
No relationship discounts
More details
Rates: Below the national average.
Debt-to-income (DTI) ratio: 50%.
Perks: No lender fees, can close 10 days sooner than the industry average.
Preapproval: It’s possible to receive initial approval within several minutes.
Time to close: Most closings take a few weeks to a few months to complete.
Best for federally-insured mortgages: Chase
3.7 stars
Interest rates: Below national average
Max DTI ratio: 43%
Why it’s the best
Chase offers multiple refinancing options including conforming, jumbo, FHA and VA-backed mortgage refinancing. In addition, cash-out refinancing and home equity loan products are available if you want to access your equity.
As Chase is a brick-and-mortar bank, you also have the flexibility of applying online or at a local branch.
Existing customers can qualify for a Chase Relationship Pricing Program interest rate discount. The discount can be as much as 0.50% with qualifying banking and investment deposits.
It’s also possible to minimize your refinancing costs by pursuing a loan that doesn’t require a home appraisal. While this assessment is a relatively small fee, some lenders only offer loans that require an appraisal to complete the underwriting process.
Pros
Many loan options, including FHA and VA loans
Can apply online or locally
Offers a banking relationship discount
Cons
Doesn’t offer USDA loans
Charges origination and underwriting fees
Challenging to qualify for the relationship discount
More details
Rates: Below the national average.
Debt-to-income (DTI) ratio: Most loans require a DTI below 43%.
Perks: Offers FHA and VA refinancing, banking relationship discounts.
Preapproval: The lender doesn’t disclose although you can apply online or in-branch.
Time to close: The closing process usually takes a few weeks.
Best for customer service quality: Rocket Mortgage
3.25 stars
Interest rates: Below national average
Max DTI ratio: Does not disclose
Why it’s the best
Rocket Mortgage offers a wide variety of loan options for an online-online lender. For example, homeowners can apply for conventional rate-and-term, cash-out refinance, FHA, VA, jumbo loans, and home equity loans.
The platform also consistently receives accolades from J.D. Power for client satisfaction with primary mortgage origination. This platform has received the top spot eight times and most recently in November 2022. Additionally, phone and online chat support is available daily.
Homeowners can also receive free closing cost credits by participating in the Rocket Rewards programs. It’s possible to earn rewards points by watching videos, reading articles, and completing other short tasks. When you’re ready to refinance, you can redeem your points and apply the savings directly to your closing costs.
For extra peace of mind, you can be eligible for a Verified Approval guarantee. If your mortgage doesn’t close after getting pre-approved, you can receive $1,000.
Pros
Many conventional, FHA, and VA loan options
Excellent customer service ratings and accessibility
Can reduce closing costs through Rocket Rewards
Cons
Charges origination fees
No physical branches
Doesn’t offer USDA loans
More details
Rates: Below the national average.
Debt-to-income (DTI) ratio: Does not disclose.
Perks: Rocket Rewards closing code credits, offers FHA and VA refinancing, $1,000 Verified Approval guarantee.
Preapproval: You can receive initial prequalification within a few minutes.
Time to close: It takes anywhere from 30 to 50 days to close on most mortgage refinances.
Compare the best mortgage refinance lenders
| Lender | Interest rates | Max DTI ratio | Time to close |
|---|---|---|---|
| Bank of America | Below national average | Does not disclose | 4 to 6 weeks |
| Better | Below national average | 50% | 32 days |
| SoFi | Below national average | Does not disclose | Does not disclose |
| Ally | Below national average | 50% | A few weeks |
| Chase | Below national average | 43% | A few weeks |
| Navy Federal Credit Union | Below national average | Does not disclose | 30 to 45 days |
| Rocket Mortgage | Below national average | Does not disclose | 30 to 50 days |
Why some lenders didn’t make the cut
Of the 17 mortgage lenders that we reviewed, only a fraction made the cut. The lenders that didn’t have high enough scores to be included, received lower ratings mostly due to having a lack of transparency around credit score, DTI requirements, and preapproval and closing timelines. Some of the excluded lenders also had limited customer service options and bad customer reviews.
Methodology
Our expert writers and editors have reviewed and researched 17 popular lenders to help you find the best mortgage refinance. Out of all the lenders considered, the 7 that made our list excelled in areas across the following categories (with weightings): loan cost (30%), eligibility and accessibility (20%), customer service (20%), and ease of application (30%).
Within each major category, we considered several characteristics, including minimum APR, maximum allowed debt-to-income (DTI) ratio, minimum credit score requirements, and applicable fees. We also evaluated each provider’s customer support options, borrower perks, and features that simplify the borrowing process—like time to close and preapproval time.
How to qualify for a mortgage refinance
The qualification requirements are similar to a home purchase loan and you should gather the same documents as before. Your potential lender may disclose other details such as a minimum credit score, maximum DTI, minimum equity and request your last two years of work history.
As a basic guideline, lenders typically require a minimum 580 credit score for FHA and VA refinances and at least 620 for conventional mortgage refinances.
If you have a complex situation, such as being self-employed or having imperfect credit, you should also seek out a lender specializing in your circumstances. A loan officer can navigate you through the application process to choose the best mortgage option and avoid underwriting delays.
When to refinance your home loan
Refinancing your mortgage is worth it when you need a smaller monthly payment or you can qualify for a better interest rate. However, you must decide if the refinancing costs are worth the potential benefits.
Some homeowners also pursue cash-out refinancing to use their home equity to cover expenses such as home improvements and consolidating high-interest debt. This option assigns a new interest rate and repayment schedule for your existing balance and any equity that you withdraw.
To minimize your fees and to preserve your existing mortgage rate which can be lower than today’s refinance rates, you may consider applying for a home equity loan instead.