5 Best Mortgage Refinance Companies

Interest rates are projected to stay low well into the rest of 2021. Refinancing could help lower your monthly mortgage payment by allowing you to change the terms of your mortgage. To help, we selected our top picks for the best mortgage refinance lenders as an extension of Money’s Best Mortgage Lenders and Best VA Loans.

To ease your mortgage refinance process, we also have a mortgage refinance calculator that can help you estimate how much you might be able to save.

Our Top Picks for Mortgage Refinance Companies

• Rocket Mortgage by Quicken Loans - Best Refinance Lender Overall
• Bank of America - Best for Member Discounts
• Navy Federal Credit Union - Best from Credit Union
• loanDepot - Best for Online Mortgage Refinancing
• Nationwide - Best for Borrowers with Poor Credit

Best Mortgage Refinance Reviews

Rocket Mortgage by Quicken Loans Review – Best Refinance Lender Overall

Rocket Mortgage by Quicken Loans (NMLS#3030) ranks as our best refinance mortgage lender overall because of its excellent track record in customer satisfaction, in-depth digital software, and web-based customer support.

Through Rocket Mortgage, Quicken’s digital platform, customers can automatically import their property taxes and home insurance information upon entering their address. Using eClosing, customers can modify their rate, repayment term, and costs to see other payment options.

Loan Types Offered:

• Conventional 15 and 30-year mortgage
• Adjustable-rate mortgage loans
• Government-backed loans (FHA and VA loans)

Rocket Mortgage, an online lender, has consistently ranked first place in the 2020 JD U.S Primary Mortgage Origination Satisfaction Study, outperforming other lenders every year. Although the company is deeply rooted in online technology, it also has over 3,000 Home Loan experts available seven days a week to help you complete your application over the phone.

Bank of America Review – Best For Member Discounts

Bank of America (NMLS# 399802) is our top mortgage refinance company for member discounts because of its Preferred Rewards program. With this service, members can qualify for a closing cost reduction of up to $600 from their purchase or refinance origination fees.

The program works in tiers ranging from Gold to Platinum Honors, with discount levels based on the tier for which each customer qualifies. A member’s tier is determined by qualifying balances in Bank of America banking and/or Merrill investment accounts.

Loan Types Offered:

• Home equity loans
• Fixed-rate mortgages
• Adjustable-rate refinance loans
• FHA and VA loans
• Cash-out refinancing loans

Another perk of doing business with Bank of America is its comprehensive digital services, including an online tool to track the progress of your mortgage loan and refinance application in real-time. While the company doesn’t state a credit score requirement on its website, you can consult one of their loan officers to see if you qualify for refinancing.

Navy Federal Credit Union – Best from Credit Union

Navy Federal (NLMS #399807) has mortgage refinancing options ranging from 10- to 30-year loan terms for their VA Streamline (IRRL) and Homebuyers Choice. Navy Federal also offers the Military Choice loan for those who have exhausted their VA loan option. However, they don’t offer FHA, USDA loans, construction loans, or reverse mortgages.

Loan Types Offered:

• Conventional
• Cash-Out
• VA loans, VA Streamline
• Fixed and adjustable-rate mortgage loans
• Jumbo loans

Realty Plus and Navy Federal Title Services are tools that facilitate the mortgage refinance process for homebuyers looking to refinance or sell and buy new property. Realty Plus connects you with a real estate agent and an agent coordinator to assist you with your mortgage application. Further, if you close your mortgage with Navy Federal using Realty Plus, you can get $400-$8,000 cash back.

loanDepot Review – Best For Online Mortgage Refinancing

loanDepot (NMLS# 174457) stands out for its “mellosmartloan,” an end-to-end digital portal that employs artificial intelligence to verify asset and employment details and can also perform credit checks and begin the appraisal process.

loanDepot also has licensed loan consultants available to help the consumer select the best mortgage product for their particular financial situation. By calling their lending officers, you can also request information on their mortgage rates, which are unfortunately not readily available on their website.

Loan Types Offered:

• Fixed- and adjustable-rate loans
• Jumbo loans
• Government-backed loans (VA and FHA loans)
• Home Affordable Refinance Program Loans (HARP)

Choosing loanDepot for a mortgage refinance is rewarded with a lifetime guarantee. The company offers to waive lender fees and reimburse appraisal fees on future refinances after you’ve refinanced with them at least once.

Nationwide: Best for Borrowers with Poor Credit

Nationwide Home Loans (NMLS #331347) ranks as a top choice for borrowers with poor credit for their Lease Option Program. The Lease Option Program requires that you have at least a 10% down payment and enough income for rent payment. Nationwide buys the home, and you sign a lease agreement with an option to buy within three years.

During those three years, you can live in your new home (paying the lease) while Nationwide helps you improve your credit score, sort out income reporting requirements, or perform whatever other steps are necessary to help you get ready to purchase the home.

Loan Types Offered:

• VA loans
• FHA loans
• Conventional loans
• Jumbo loans

Nationwide also offers a Best Rate Guarantee, where they match a loan estimate from another lender.

Mortgage Refinance Guide

Should You Refinance Your Mortgage?

Refinancing can lower the interest rate on your mortgage, help you obtain a lower monthly payment and a shorter term. Homeowners also choose to refinance their homes for home improvements, such as expansions or repairs, or for financial emergencies. They can even use their home equity to consolidate debt and help pay down or refinance student loans. If it turns out a mortgage refinance isn't the best choice for your financial situation, and you'd still like to manage high student debt, our list of best student loan refinance companies may offer some options.

While some people may also look at mortgage refinancing as a way to pay off credit card debt, this should only be considered if their debt is very high and keeps growing due to interest rates.

A refi is also the best way to get rid of private mortgage insurance (PMI) after you have reached 20 percent equity in your home.

Should I refinance with my current lender?

You can refinance and renegotiate the terms of your current loan with your lender, but it’s still wise to shop around and request loan estimates from multiple lenders, and look into both current mortgage rates and apr rates, as well as available refinance options. You might find lender offers that are better deals in terms of refinance rates, loan products, or closing costs. While many lenders have their own calculators, you can also use our mortgage refinance calculator to get an idea of how much you could be saving.

Aside from refinancing with your current lender, another option is using a mortgage broker, who acts as an intermediary between borrowers and lenders. This can be beneficial, as some lenders work exclusively with brokers and can offer better rates thanks to a broker's high volume of loans. However, brokers often receive fees from lenders for giving them business, or you might have to pay their fee yourself.

Types of Mortgage Refinance

Rate-And-Term Refinance

Also known as a “no cash-out refinance,” a rate-and-term refinance adjusts the interest rate or the term (or both) of an existing mortgage while its balance stays the same. This option often has a lower interest rate than cash-out loans.

Zero-Closing-Cost Refinance

Some lenders offer “no-closing-cost” or “zero-closing-cost” refinance loans for those who qualify. These let you roll up closing costs into your mortgage loan. While you’ll still pay closing costs and interest on those fees, it won’t be upfront.

Cash-Out Refinancing

A cash-out refinance converts the home equity you’ve accumulated into cash, similarly to a home equity line of credit (HELOC). You’re essentially replacing your existing mortgage loan with a new loan that’s higher than your current mortgage balance. In turn, you get the difference in home equity as a tax-free cash advance paid to you at closing.

What to Watch Out For: The borrower may end up with a higher interest rate and may extend the life of the loan. Keep in mind that you should only borrow an amount that’s feasible to pay off.

Cash-In Refinance

A cash-in refinance lets you pay down an existing mortgage to lower your mortgage loan balance during a refi negotiation. Contrary to cash-out refinancing, this option may improve the chances of an underwater mortgage qualifying for a refinance. Generally, most lenders require an LTV ratio of at least 80%.

Streamline Refinance

Streamline refinance allows borrowers to refinance an existing FHA-insured mortgage with limited documentation or underwriting. These loans don’t require appraisals, in most cases only employment verification.

What Do You Need to Refinance Your Mortgage?

Regardless of the type of loan, there are three primary considerations lenders consider when applying for a new mortgage refinance: credit score, debt-to-income ratio, and average loan-to-value ratio (LTV).

Debt-to-income ratio (DTI) of Less Than 50%

Lenders usually require that your debt-to-income ratio be 50% or less to qualify for an FHA loan refinance. Meanwhile, conventional loans may allow DTI ratios of up to 43%, according to the Consumer Financial Protection Bureau (CFPB).

To get you started, we have a tool to calculate your current DTI ratio.

A Healthy FICO Credit Score

Most mortgage refinance lenders require a minimum credit score of 620, but you'll get the best rates for a score upwards of 740. If you're not sure what your FICO score is, you can obtain free annual copies of your credit report from the three main credit reporting bureaus — TransUnion, Equifax, and Experian — at annualcreditreport.com.

Average Loan-to-Value Ratio (LTV) of 20% or More

The LTV is the amount of the loan you want to take out divided by the appraised value of your home. Most lenders require that borrowers have at least 20% in equity to qualify for a refinance.

Mortgage Refinance Checklist

When applying for a mortgage refinance, lenders will ask you for specific documents. Check out the list below to ensure you have everything you need:

Enterprise-backed Mortgage Refinances

Starting this summer, eligible borrowers will be able to refinance their mortgage at a reduced interest rate and lower monthly payments. According to the Federal Housing Finance Agency (FHFA), borrowers could save an estimated $100 to $250 a month.
To qualify, 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 area’s median income
• Have no missed payments in the past six months, and no more than one missed payment in the previous 12 months
• Have a debt-to-income ratio below 65% or a FICO credit score of at least 620
• Have a mortgage loan to value (LTV) ratio lower than 97%

How We Chose the Best Mortgage Refinance Companies

Customer experience

Our methodology considered lenders that provided online tools, pre-approval, discounts, or exclusive refinance programs above those that didn’t.

Data analysis

We considered lender size, reputation, and complaints. As part of our research, we consulted the Mortgage Bankers Association, J.D. Power’s U.S. Primary Mortgage Origination Satisfaction Study, and the NMLS (Nationwide Multistate Licensing System, or “Nationwide Mortgage Licensing System”).

Consumer feedback and expert input

We vetted each based on the most important attributes of a lender — price, process, and service — according to expert interviews and consumer feedback from a short poll that ran on Money’s social media platforms.

Summary of Money’s Best Refinance Companies

• Rocket Mortgage by Quicken Loans: Best Overall
• Bank of America: Best for Member Discounts
• Navy Federal Credit Union: Best from Credit Union
• loan Depot: Best for Online Mortgage Refinancing
• Nationwide: Best for Borrowers with Poor Credit