8 Best Mortgage Refinance Companies of December 2024

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Money's mortgage refinance main takeaways:

• The most popular reason to refinance is to lower your current mortgage rate, but you can benefit in other ways. You can shorten or lengthen the term of your loan or do a cash-out refinance to use some of your home equity.

• Mortgage rates today are almost a full percentage point lower than they were a year ago, which has given recent homeowners the opportunity to lower their current rates.

• According to data analytics firm Intercontinental Exchange (ICE), the recent decline in mortgage rates led to a 76% increase in rate and term mortgage refinancing in September.

• You should review your financial goals to determine if a mortgage refinance is the best choice for you.

Our Top Picks for the Best Mortgage Refinance Companies of December 2024

The companies below are listed in alphabetical order:

• Ally Financial – Best for Jumbo Loans
• Bank of America – Best for Member Discounts
• Better – Best for Fast Closing Time
• loanDepot – Best for Online Mortgage Refinancing
• Nationwide – Best for Custom Loans
• Navy Federal Credit Union – Best Credit Union
• Rocket Mortgage – Best Refinance Lender Overall
• Zillow – Best Marketplace

Best Mortgage Refinance Reviews

Why we chose it: With its high lending cap and lack of lender fees, Ally Financial is our pick for the best mortgage refinance company for jumbo loans – that is, those that exceed the maximum conventional loan limit ($766,550 for a single-unit property in most areas; the limit is $1,149,825 in designated high-cost areas) set by the Federal Housing Finance Agency (FHFA).

Ally Financial (NLMS# 181005) can refinance jumbo loans up to $4 million, which is higher than many of its competitors. Plus, jumbo refinancing isn’t limited to single-family homes. The online lender can also refinance vacation homes and investment properties.

There are several jumbo loan options, including rate, term and cash-out refi. You can choose between fixed or adjustable-rate loans. Ally’s offerings also include non-jumbo refinance loans.

A big plus of Ally is that it doesn't charge mortgage origination, application, loan processing or underwriting fees on any of its loans, which can reduce the cost of borrowing by several thousand dollars. Ally’s streamlined application can be completed in about 15 minutes, and the lender says it can close on the loan about 10 days faster than the industry average.

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Why we chose it: Bank of America is our choice for member rewards because its Preferred Rewards program can help reduce lender fees and provide rate reductions for eligible borrowers.

Members of the Bank of America (NMLS# 399802) Preferred Rewards program can reduce the closing costs or loan origination fees on their purchase or refinance loan by as much as $600.

Your membership tier, which ranges from Gold to Platinum Honors, will determine how much you can reduce borrowing costs. Discount levels are determined by the balances in the Reward member’s banking and Merrill Investment accounts. Other benefits are contingent on enrolling in PayPlan, Bank of America’s automatic payment service linked to any of the bank’s deposit accounts.

Bank of America loan programs include rate, term, and cash-out refi for conventional loans, as well as FHA and VA refinancing. You can also choose between a fixed-rate and an adjustable-rate loan. The lender also has a large number of physical branches throughout the country if you prefer in-person service.

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Why we chose it: Homeowners who refinance with Better can close on their loan quicker than the competition in most cases, making the online lender our choice for the fastest closing times.

Better Mortgage (NMLS ID# 330511) uses the latest technology to make the loan and application process easy, straightforward and fast. According to Better, it can close on a refi 10 days faster than other lenders.

Because it’s a fully online lender, Better foregoes many of the fees — such as application, underwriting and origination fees — charged by traditional brick-and-mortar lenders. The lender’s loan officers don’t charge commission, either.

Another perk is the Better Price Guarantee. The lender says it will match any valid competitor’s offer or pay you $100. Using the lender’s mortgage payment and amortization calculators can estimate how much you can save when refinancing.

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Why we chose it: A smooth application process and nationwide availability make loanDepot our pick for the best online lender.

loanDepot’s (NMLS# 174457) proprietary “mello'' software uses artificial intelligence to help power its fast and easy mortgage application process. The lender’s fully digital loan portal, called “mello smartloan,” can securely collect your financial information, including your income, assets and employment data. Applying for a loan takes only a few minutes

Homeowners who already have a mortgage with loanDepot can take advantage of its Lifetime Guarantee, which eliminates lender fees when refinancing your loan. Customers can also take out a home equity line of credit (HELOC) without needing an appraisal.

Another perk? loanDepot services its loans, so you don’t have to worry about your mortgage getting sold to another company that may not provide the same level of service.

Why we chose it: A variety of loan products and cash-back perks are among the reasons Nationwide is our choice for the best custom loans.

Nationwide, in partnership with Axos (NMLS # 524995), provides various refinance loans that can be customized to the borrower's financial situation.

Nationwide's loan offers include conforming, FHA, VA and jumbo loans, as well as customized portfolio loans, HELOCs and investment property loans. Plus, you can easily keep track of mortgage rate movements with the lender’s rate watch option, which sends an alert when rates reach a level that interests you.

The lender also offers several solutions designed to lower your borrowing costs. Borrowers who pay their mortgage from an Axos Total Loan Rewards Checking Account, for one, can get up to 3% annualized cash back on their payments.

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Why we chose it: Navy Federal’s fast online pre-approval process and flexible loan terms make it our choice as the best mortgage refinance credit union for members of the American armed forces.

Navy Federal (NLMS# 399807) has mortgage refinancing options with flexible loan terms ranging from 10 to 30 years. Refi options include VA loans, interest rate reduction refinance loans (IRRRL), conventional mortgages and fixed loans.

A few of the lender’s standout options include the Military Choice loan, designed for borrowers who have exhausted their VA loan benefit, and the Homebuyers Choice loan, which allows homeowners to refinance up to 97% of their home’s value and take cash out. Neither option requires a down payment.

These loans also offer a no-refi rate drop. Borrowers who qualify for this benefit and purchase a home with a Navy Federal mortgage can reduce the interest rate on their loan without refinancing if rates drop in the future.

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Why we chose it: Rocket Mortgage (formerly Quicken Loans) has consistently ranked the highest in customer satisfaction surveys and offers a variety of loan options, making it our top pick for the best refinance lender overall.

Rocket Mortgage (NMLS ID# 3030) is well-known for its customer service and easy online application process. The lender offers various refinancing alternatives, including rate and term refinancing, cash-out refinancing and home equity loans. It allows borrowers to shorten their loan term, with terms as short as eight years — a lower-than-usual minimum.

Low-income borrowers or those with high debt-to-income ratios (up to 65%) who currently have a loan owned by Fannie Mae or Freddie Mac can also find refi options with Rocket. The RefiNow and Refi Possible programs provide a reduction of at least 0.50 percentage points off their current mortgage rate. Homeowners can also apply for up to $500 in grants to help pay for appraisal costs.

Other refinance options include VA, FHA and jumbo loans. Although Rocket is primarily an online lender, you can also get in-person service through one of its affiliated mortgage brokers.

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Why we chose it: Its ability to connect borrowers with various licensed lenders nationwide makes Zillow our choice for the best mortgage refinancing marketplace.

Zillow Home Loans (NMLS ID#: 10287) is the lending arm of Zillow, the real estate listing site. Its Lender Directory allows homeowners to search for mortgage providers by city, state, zip code or name of a specific bank or loan officer.

You’ll have access to various lending sources, from mortgage brokers and brick-and-mortar banks to credit unions and online lenders. That allows you to compare offers from Zillow to those available from other lenders to find the best fit for you. You can start the application directly on the website.

Several Zillow features can help you decide whether a refi suits your needs. These tools include a mortgage refi comparison tool that allows you to compare rates for different loan types and see how they stack up to the market average.

Other mortgage refinance companies we considered

Our research on the mortgage lending industry suggests that the biggest lenders don’t necessarily offer the best refinance products. (Though they might excel in other areas.)

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Alliant Credit Union Review

Why we didn’t choose it: Alliant Credit Union (NMLS# 197185) didn’t make our list because it offers only a limited number of refinancing options. It also has very limited information about refinancing on its website; for details, including rates and loan options, you have to contact a loan officer.

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AmeriSave Mortgage Review

Why we didn’t choose it: AmeriSave Mortgage (NMLS# 1168) failed to make our list because its site lacks information about refinancing costs and fees.

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Chase Review

Why we didn’t choose it: We didn’t choose Chase (NMLS# 399798) because it doesn’t waive any origination or other closing cost fees, nor does it offer rate discounts for existing Chase customers.

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Guild Mortgage Review

Why we didn’t choose it: We didn’t choose Guild Mortgage (NMLS# 3274) because its loan products are not available in all states; it doesn't issue loans to residents of New York.

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PNC Bank Review

Why we didn’t choose it: We didn’t choose PNC Bank (NMLS# 446303) because the application process cannot be fully completed online. You can start a loan application online, but you'll have to schedule a call or meeting with a mortgage loan officer to move forward.

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Truist

Why we didn’t choose it: Although Truist (NMLS #399803) has competitive refinancing rates and loan options, it doesn't have the best reputation. On TrustPilot, it has a TrustScore of 1.2 out of five based on over 1,500 reviews, placing it in the "bad" category.

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U.S. Bank Review

Why we didn’t choose it: U.S. Bank (NMLS# 402761) refinancing options are too limited for the lender to make our list. And, its rate quote tool doesn't take credit into consideration, making it difficult to compare loan options.

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Veterans United Home Loans Review

Why we didn’t choose it: Veterans United (NMLS# 1907) caters to borrowers eligible for VA loans who can qualify for VA refinancing, so non-military borrowers may find it to be too limited.

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Mortgage Refinance Guide

When you take out a mortgage, much of your payment will go toward interest. In fact, according to a study from the Intercontinental Exchange (ICE), just 12% of mortgage payments on loans originated in 2023 and 2024 went toward paying the principal, with the remainder going toward interest and other costs like homeowners insurance and property taxes.

Refinancing your mortgage lets you replace your current loan with a new mortgage at a lower rate, which will help you reduce your overall interest payments. You can also refinance to change the loan term or take advantage of your home’s equity.

The refinance process is similar to taking out a purchase loan. You’ll pay closing costs and lender fees but won’t have to make a down payment. The new loan proceeds can be used to pay off high-interest debt like student loans or finance home improvement projects.

Our mortgage refinance guide is designed to help people refinancing their home loans for the first time make an informed decision. Read on to learn about different types of mortgages, the benefits of refinancing and which documents financial institutions require for a complete application.

Types of mortgage refinance

Understanding the different loan types can help you choose the best mortgage refinance lenders and products for your needs.

Rate-and-term refinance

A rate-and-term loan refinance allows you to take advantage of low rates. You take out a new loan with the same loan balance as your existing mortgage. Ideally, you’ll get a lower rate, a shorter repayment term or both. Rate-and-term is the most common type of refi.

What to know:

• You can use this type of refi to switch from an adjustable-rate mortgage to a fixed-rate mortgage or vice versa

• Also known as a “no-cash-out” refinance

What to watch out for:

• You’ll have to get an appraisal and pay closing costs again; total refinancing closing costs are usually 3% to 6% of your loan amount

Zero-closing-cost refinance

Some lenders offer “no-closing-cost” or “zero-closing-cost” refinance loans to qualifying applicants.

What to know:

• You’ll still pay closing costs (and any interest that accrues), but they’ll be rolled into the mortgage loan and not an upfront cost

What to watch out for:

• Because closing costs are included in the loan amount, monthly payments are higher than if you paid the costs at closing, and you'll pay more in interest over time

Cash-out refinancing

One of the benefits of homeownership is the long-term increase in home values. According to CoreLogic, the national home equity rate increased by 8% in one year, bringing the total home equity amount to over $1.3 trillion.

If you're one of the millions of homeowners who have experienced an increase in equity, a cash-out refinance converts a portion of the home equity you’ve accumulated into cash, similar to a home equity loan or home equity line of credit (HELOC). A cash-out refi replaces your existing mortgage with a new loan at a higher balance.

What to know:

• You can take advantage of an increase in your home’s value with a tax-free cash advance paid to you at closing

• These funds are often used to make home improvements

What to watch out for:

• You could end up with a higher interest rate and monthly payment
• Make sure you borrow an amount that’s feasible to pay off

Cash-in refinance

If you have an underwater mortgage, a cash-in refinance allows borrowers to lower their mortgage principal during a refinance negotiation. With this type of loan, the borrower makes a lump sum payment on their mortgage, thereby lowering the principal balance.

What to know:

• This option could improve the chances of an underwater mortgage qualifying for a refinance

• If you pay down enough of the principal to increase your equity above 20%, it will eliminate your monthly private mortgage insurance (PMI) payments

• Most lenders require a loan-to-value ratio (LTV) of at least 80%

What to watch out for:

• Your funds will be tied to your home, so you won’t be able to use them to pay off other debt, cover emergency expenses or invest
• Cash-in refinancing usually requires good to excellent credit

Streamline refinance

A streamline refinance allows borrowers who meet the qualification requirements to refinance existing government-backed loans, such as FHA, USDA or VA loans, with limited documentation or underwriting.

What to know:

• These loans generally don’t require appraisals and may or may not require employment and income verification

• You need to show a history of on-time monthly mortgage payments

What to watch out for:

• Government-backed loans have specific qualification requirements for borrowers

Low-income enterprise-backed mortgage refinance

In the summer of 2021, Fannie Mae and Freddie Mac implemented new refinance options for low-income borrowers under the auspices of the Federal Housing Finance Agency (FHFA). Eligible borrowers can refinance their mortgage at a reduced interest rate and lower monthly payments.

The Federal Government has several other programs for borrowers with financial difficulties, including the Home Affordable Refinancing Program (HARP).

What to know:

• According to the Federal Housing Finance Agency (FHFA), borrowers may be able to save an estimated $100 to $250 per month

What to watch out for:

• This option is not available for cash-out refinancing loans

• You need to have lived in the home for at least one year before doing this kind of refi

• Only applies to single-family homes.

To meet eligibility requirements, borrowers must:

• Have a mortgage backed by Fannie Mae or Freddie Mac (the Enterprises) for the house they live in

• Have an income at or below 80% of their residential area’s median income

• Have no missed payments in the past six months and no more than missed payment in the past 12 months

• Have a debt-to-income ratio below 65% or a FICO credit score of at least 620

• Have a mortgage LTV ratio lower than 97%

How does refinancing work?

Refinancing a mortgage involves replacing your existing home loan with a new one. This means your interest rate, monthly payment, and loan term will all change.

Say you obtained a $300,000 loan with a mortgage interest rate of 6% and a monthly payment of $1,799. After 14 years, you have a remaining balance of $223,000 and decide to refinance into a new 30-year mortgage at 5% interest. Your new monthly payment will be $1,197, and your new payback time is 30 years.

Many homeowners are attracted to refinancing if they can find a lower rate, but there are other reasons for taking out a new home loan — like using home equity to pay off higher-interest debt or shortening the loan term.

If, for example, you have an outstanding balance of $247,000 on your 30-year mortgage after seven years at 6% interest, your current monthly payment would be about $1,499. You can refinance into a 15-year fixed-rate loan at 5%, which would bring up your monthly payment to $1,949, but you’ll pay off your home in a total of 22 years instead of 30 (and save a lot of money on interest in the process).

Before deciding on a lender, shop around and get rate quotes from at least three different lenders. You must provide all your financial information to get a personalized rate. Once you decide on a lender, get a rate lock so the interest charged doesn't change before you can close on the loan. If you have bad credit, work on improving it before you apply for a new loan, since borrowers with high credit scores typically get the lowest rates.

How soon can you refinance a mortgage?

How soon you can refinance your mortgage will depend, in part, on the requirements outlined by your lender. These include having a good credit history and enough money in the bank to cover the costs of refinancing.

The type of loan you have will also affect your refi timeline. In the case of conventional loans, you may be able to refinance immediately. Some lenders may require a “seasoning” period, where you have to make a minimum number of monthly payments before being eligible to refinance, which you may be able to circumvent by choosing a different lender.

For FHA loans, you’ll need to have made at least six monthly payments before you can do a rate and term refinance. VA loans also require at least six months of payments, while USDA loans require 12 months of payments.

For a cash-out refinance, you’ll need to have a record of between six and 12 months of payments before you can refinance, depending on the type of loan and the lender. If you’re thinking about refinancing your loan, check with your lender to see what requirements they may have.

Should you refinance your mortgage?

If you’re on the fence about going through with a mortgage refinance, here’s some info on the pros and cons of refinancing, what the money can be used for, and the documentation you’ll need to provide to complete an application.

Under the right circumstances, refinancing can help:

• Secure a lower interest rate on your mortgage
• Lower your monthly payment
• Shorten your loan term
• Pay off higher-interest debt like credit cards
• Improve your personal finances

Should I refinance with my current lender?

Before selecting a refinance mortgage lender:

• Shop around and request loan estimates from multiple lenders

• Look into current mortgage rates to see if you can find a more competitive rate than you have now

• Use our mortgage refinance calculator to understand how much you could be saving.

What do you need to refinance your mortgage?

Lenders consider three primary factors when reviewing mortgage refinance applications: credit score, debt-to-income ratio and loan-to-value ratio (LTV).

• A low debt-to-income (DTI) ratio: You need a DTI of up to 43% for conventional loans or less than 50% for an FHA mortgage refinance, according to the Consumer Financial Protection Bureau (CFPB). Use our DTI ratio calculator to figure out where you stand.

• A healthy FICO credit score: Although some government-backed mortgages allow you to refinance your loan with a credit score as low as 580, most mortgage refinancing companies require a credit score of 620 or higher. But you'll need a credit score of 740 or higher to get the best rates. Mortgage companies will request a copy of your credit report as part of the loan application procedure.

• A Loan-to-value ratio (LTV) of 80% or less: LTV is the loan amount you want to take out divided by the appraised value of your home.

You must also submit additional paperwork related to your income and the property you are refinancing.

Documentation required to apply for a mortgage refinance:

☑ A copy of your government-issued ID or Social Security card

☑ Proof of income for the last 30 days

☑ W-2s for the past 2 years

☑ Federal tax returns (personal and business) for at least the last 2-3 years

☑ Written explanation if employed less than two years or if there’s a gap or change in employment

☑ Address of property to be refinanced and purchase contract

☑ Homeowners' insurance information such as the agent’s name and contact information

☑ Bank statements and statements of assets

☑ Bankruptcy/ discharge papers (if applicable)

How much does it cost to refinance a mortgage?

Just like a purchase loan, refinancing a mortgage involves closing costs. The total cost depends on several factors, including the type of refinancing you choose, your credit score, the size of the loan and your lender. In general, you should expect closing costs to be 3% to 6% of the loan principal to cover the following expenses:

• Administrative fees
• Appraisal fees
• Attorney fees
• Credit report fees
• Loan origination fees
• Survey fees
• Tax service fees
• Title service fees
• Underwriting fees

Can I refinance my mortgage if I'm unemployed?

More mortgage refinancing options used to be available for non-traditional borrowers. These types of loans, known as no-income verification refinancing loans, allowed borrowers to refinance their mortgages by providing alternative documentation to show they could afford their payments.

No-income verification refinancing isn't readily available now; you typically need to show a lender that you're employed, or, if you don't have a traditional job, you need to provide other documentation to verify your income, such as your tax returns or bank or investment account statements. These loans are considered non-qualifying mortgages (non-QM), which don't follow the consumer protection requirements established by the Consumer Financial Protection Bureau.

If you're unemployed, you're unlikely to qualify for a loan through a conventional lender unless you have another source of substantial income. Look for a non-QM lender for options that could work for you.

Should I refinance my loan if I plan on selling in the near future?

Refinancing may not make sense if you plan on selling your home within the next few years. Closing costs can be significant — usually between 3% and 6% of the loan principal — so rate-and-term refinancing only pays off after several years; at that point, you can enjoy the benefits of a lower rate, justifying the expense of your closing costs.

If you move within the next few years, you won't have time to enjoy those benefits, so refinancing may be an unnecessary expense.

Do I have to get an appraisal to refinance my mortgage?

When you bought your home, you likely paid for an assessment or appraisal of the property. Depending on how long ago that was, you may need to have another assessment done to refinance your mortgage. Requirements vary by lender, but you may undergo one of the following appraisal types:

• Full or in-person appraisal: A full or in-person appraisal involves an appraiser visiting the property and walking through it to complete the assessment.

• Hybrid appraisal: A hybrid appraisal relies on photographs or input from a third party to calculate the home's value.

• Desktop appraisal: Desktop appraisals use public records, such as property records, online photographs and floorplans to produce the assessment.

• Drive-by appraisal: With this type, the appraiser drives to the home and visually inspects the outside. It's less thorough than an in-person appraisal, but usually faster.

• No appraisal: Depending on the type of refinance loan you're applying for and when the last appraisal occurred, some lenders will allow you to skip the appraisal, saving you hundreds in appraisal fees.

When refinancing your mortgage is not the best idea

Just because you can refinance doesn’t mean you should.

For starters, most experts argue that it's not worth it if your new interest rate isn’t at least 0.5 to 0.75 percentage points lower than your previous one.

Refinancing also means new closing costs and other potential fees. If you won’t recoup those costs, it doesn’t make sense to refinance — even if you’re making a lower monthly payment. You should also reconsider a mortgage refinance if:

• Your mortgage refinance rate won’t save you much in interest
• Your credit score has taken a dive since your original mortgage
• Your new minimum monthly payment will be out of your budget

Latest News on Mortgage Refinance

Interest rates have crept higher over the past month, reducing the window of opportunity many homeowners had to refinance their high-rate home loans. However, those who have loans with 7% or higher rates may still benefit from a mortgage refinance.

Mortgage rates are in the high-6% range — slightly lower than the rates last December. However, depending on your credit at the time you took out your loan, refinancing can make sense. With improved credit, you could qualify for a loan with lower rates.

According to data analytics firm ICE, homeowners took advantage of their gains in home equity in September, the most recent month data is available. A total of $27 billion dollars of tappable equity was withdrawn from their homes using products like home equity loans and lines of credit. Another $21 billion was withdrawn through cash-out refinancing.

How We Chose the Best Mortgage Refinance Companies

Our methodology considered:

• Lenders that provide a quality customer experience with online tools, pre-approvals, discounts or exclusive refinance programs

• Lender size, reputation and number of complaints

• Ratings and data from the Mortgage Bankers Association, J.D. Power’s 2024 U.S. Mortgage Servicer Satisfaction Study and the NMLS (Nationwide Multistate Licensing System or “Nationwide Mortgage Licensing System”)

• Consumer feedback and expert input

Summary of Money’s Best Mortgage Refinance Companies of December 2024

The companies listed below are in alphabetical order.

• Ally Financial – Best for Jumbo Loans
• Bank of America – Best for Member Discounts
• Better – Best for Fast Closing Time
• loanDepot – Best for Online Mortgage Refinancing
• Nationwide – Best for Custom Loans
• Navy Federal Credit Union – Best Credit Union
• Rocket Mortgage – Best Refinance Lender Overall
• Zillow – Best Marketplace