Best Mortgage Refinance Companies Reviews

Looking for the best Lenders with the Best Mortgage Refinance Rates

Check out this list of the finest refinance lenders if you’re looking to refinance your mortgage to get a better rate or attain another financial goal.

Low interest rates have prompted many homeowners to refinance their mortgages in recent years, and those who haven’t done so yet could still save money.

Whether you’re looking to refinance to take advantage of historically low interest rates, cash out some of your home equity, or adjust the length of your loan, NerdWallet has compiled a list of the best refinance lenders in a variety of categories so you can find the one that’s ideal for you.

Best Lenders With Mortgage Refinance Rates

#1 Rocket Mortgage, LLC NMLS#3030 National credit score minimum 620

Good for: borrowers that value convenience online and on the go, and who want a totally digital home loan with consistently high customer service.

Pros

Self-service customers who prefer to apply for a house loan online and only speak with a human when necessary are catered to.

Within minutes, it calculates the loan amount you’ll be eligible for.

Streamlines the online procedure by allowing you to retrieve documents and assets, as well as update your preapproval letter.

Cons

A credit check is required to obtain a tailored interest rate, which may have an impact on your credit score.

There are no home equity loans or lines of credit available.

According to the most recent data, lender costs are on the high side, and they aren’t mitigated by unusually low mortgage rates.

. #2 Better NMLS#330511 National Minimum Credit Score – 620

Good for: tech-savvy borrowers that like to do their banking online.

Pros

A web-based approach with human assistance as needed.

It’s simple to see personalized mortgage rates.

In as little as 24 hours, you can get a “underwriter reviewed” preapproval letter.

The loan will not be changed if the assessment is lower than predicted, according to the appraisal guarantee.

Cons

HELOCs and home equity loans are not available.

VA and USDA loans are not accepted.

Borrowers who employ Better real estate agents are eligible for the appraisal guarantee.

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#3 NASB NMLS#400039 Minimum credit score 620 Minimum down payment 3%

NASB offers a wide range of loan alternatives, as well as competitive mortgage rates and costs.

Pros

Competitive rates and origination costs are available.

In some circumstances, atypical revenue sources are considered.

Cons

Does not provide mortgages for home improvements.

Home equity loans and lines of credit are not available.

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NMLS#35953 Pennymac #4
Minimum credit score of 620; minimum down payment of 3%

Suitable for: borrowers looking for a conventional or government-backed mortgage, as well as those looking to compare rates online.

Pros

Provides a comprehensive set of online services, including e-signatures and loan process tracking.

Custom rate quotes are displayed based on the home’s valuation, down payment or equity, ZIP code, and credit score range.

Cons

According to the most recent federal data, origination fees are on the higher end.

Jumbo mortgages and home equity lines of credit are not available.

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#5 NMLS#1838 Watermark Home Loans
Minimum credit score of 620; minimum down payment of 3%

Good for: consumers searching for a wide range of loan options, including some unusual ones like reverse mortgages for seniors.

Pros

For select debtors, it offers reverse mortgages and interest-only loans.

A full application, as well as loan procedure updates, are available online.

Cons

Does not provide financing for home improvements.

Without supplying contact information, fully personalized mortgage rates are not accessible.

#6 NMLS#409631 NBKC
Minimum credit score of 620; minimum down payment of 3%

 

 

Good for: borrowers with good credit who wish to pay low interest rates and have access to online and phone support. The emphasis is on VA loans.

Pros

Full online capabilities, from application to loan tracking, are available.

Without requiring contact information, this tool displays customizable prices and fee estimates.

Cons

Only the Kansas City metro area has access to equity lines and construction loans.

There are no renovation loans available.

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NMLS#418467 #7 BNC National Bank
Minimum credit score of 640; minimum down payment of 3%

BNC National Bank has a wide range of loans, but you’ll need to speak with a loan officer to get personalized interest rates.

Pros

A wide range of loan kinds and products are available.

Online capabilities have been improved, as have the iOS and Android apps.

Alternative credit data, such as cell phone payments, is taken into account.

Cons

There are only a few physical mortgage offices.

Without completing an application or interacting with a loan officer, only limited rate information is provided.

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#8 NMLS#1484615 SoFi
Minimum credit score of 620; minimum down payment of 3%

Good for: Borrowers looking for a completely digital application procedure for traditional buy or refinance mortgages.

Pros

Provides a mortgage application that is fully digital.

According to the most recent data, mortgage rates are on the low side.

Members of SoFi may be eligible for a $500 discount on mortgage fees.

Cons

There are no government-backed loans available, such as FHA or VA.

To see customized mortgage rates, users must first create an account.

In four states, SoFi mortgages are not available.

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(9) NMLS#133056 LenderFI
620 is the minimum credit score required in the United States.

Good for: borrowers who want to buy or refinance their home entirely online.

Pros

Has a comprehensive set of online features, including an application, document uploading, and process updates.

The site shows a variety of loan and interest rate options.

According to the most recent data, rates and fees are lower than those offered by most lenders.

Cons

Purchase-renovation loans, as well as home equity loans and lines of credit, are not viable options.

Currently, VA loans are not available.

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PNC NMLS#446303 (ten)
Minimum credit score of 620; minimum down payment of 3%

Borrowers with low-to-moderate incomes or small down payments will benefit. PNC has a number of low-down-payment loans available, including one that doesn’t require mortgage insurance.

Pros

On its website, it publishes current mortgage rates.

There is an online application for mortgage preapproval as well as a digital tool to track the status of the application.

FHA, VA, USDA, and the PNC Community Lending are just a few of the affordable loan options available.

Cons

Does not provide renovation loans.

Every state does not offer in-person service.

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(11) Wintrust Mortgage Corporation

NMLS#449042
Minimum credit score of 620; minimum down payment of 3%

Wintrust Mortgage provides a number of online conveniences, such as loan process updates, as well as a selection of loan products, such as home equity lines of credit and even home improvement loans. However, you won’t find rates on the internet.

Pros

It is possible to apply online and track your progress.

Specialty loans are available, including construction and renovation loans.

Participates in a number of first-time home buyer programs.

Cons

Some loan products have sample rates that can only be obtained by calling a loan officer.

In some states, physical locations are not available.

Flagstar NMLS#417490 (12)
Minimum credit score of 620; minimum down payment of 3%

 

 

Good for: borrowers who want a variety of options, not just in terms of mortgage products, but also in terms of how they want to do business, whether it’s in a branch, online, or over the phone.

Pros

FHA, VA, and USDA loans are among the loan kinds and products available.

Has a comprehensive set of online features.

Provides personalized online rate quotations with monthly payment projections, including mortgage insurance if needed.

Cons

Geographically, home equity financing is restricted.

Obtaining A Mortgage Is Difficult

The coronavirus pandemic added to the difficulty of obtaining a mortgage. Many lenders have increased fees, changed minimum credit score requirements, or temporarily halted specific loan products due to strong loan demand and staffing concerns. While some items and business processes have restored to pre-pandemic levels, delays and limited options may still exist. Refer to our mortgage relief page if you can’t pay your current house loan.

Why should you refinance your mortgage?
You should refinance your mortgage for a variety of reasons. People refinance to save money in the short or long term, and occasionally to borrow against their equity. The following are some of the most compelling reasons to refinance:

In order to obtain a cheaper mortgage rate. You may be able to refinance to a cheaper rate if mortgage interest rates fall after you receive the loan. As a result, your monthly payments may be reduced.

To make the term shorter. Refinancing from a 30-year mortgage to a shorter-term loan (15 or 20 years, most typically) may increase your monthly payment (even if the interest rate is lower), but it lowers the total amount of interest you pay throughout the loan’s life.

To avoid having to pay mortgage insurance. Mortgage insurance is required when purchasing a property with a down payment of less than 20%. Refinancing is one of the few ways to avoid paying private mortgage insurance, and it’s the only option to avoid paying FHA mortgage insurance.

A fixed-rate loan is used to replace an adjustable-rate mortgage, or ARM. You could refinance to a fixed-rate loan rather than enduring the uncertainty of annual interest-rate adjustments with an ARM. This way, you won’t have to worry about the rate rising.

To be able to get your hands on some equity. A cash-out refinance allows you to borrow more money than you owe on your current loan and cash out the difference. A cash-out refinance is a common method of financing home improvements.

Requirements for common refinance

You must meet the following criteria set forth by your lender and loan program in order to qualify for a mortgage refinance:

Credit score: Having a higher credit score might assist you in obtaining the best refinance interest rate. Refinance loans backed by the government often have lower credit score criteria than traditional loans. The minimal score required for an FHA cash-out refinance, for example, is 500. It’s at least 620 with a traditional refinance. Lenders, on the other hand, are free to set greater minimums if they so desire.

Debt-to-income ratio: Your debt-to-income ratio is the percentage of your gross income spent on debt repayment. A DTI of less than 36 percent is required by many lenders. You can refinance a mortgage with a higher DTI, but the interest rate will likely be higher.

Property equity is the difference between the value of your home and the amount owed on your mortgage. The amount of equity you need to refinance varies by lender and mortgage type, but a minimum of 20% equity is usual.

While you can refinance as many times as you wish, some lenders require a “seasoning” interval between loans. You’ll have to wait six months for a traditional cash-out refinance, for example. The waiting period for refinancing an FHA, VA, or USDA mortgage varies between six and twelve months.

Mortgage mortgages come in a variety of shapes and sizes.

There are three sorts of refinances available, whether you’re refinancing a traditional or government-backed mortgage:

A rate-and-term refinance is exactly what it sounds like: you refinance your mortgage to lower your interest rate, decrease the term of your loan, or both.

A cash-out refinance is when you replace your existing mortgage with a new one that is worth more than your current loan sum. The difference is returned to the homeowner in the form of cash, which can be utilized for house upgrades or other financial obligations. Cash-out refinancing choices include standard, FHA, and VA loans.

Streamlined refinance: The FHA, VA, and USDA all offer streamlined refinance alternatives that may allow you to avoid the traditional appraisal and credit check, saving you both time and money. Both the FHA streamline and the VA IRRRL require that the refinancing provide a financial benefit, such as a lower monthly payment or a lower interest rate.

Choosing a lender for a refinance

Whether you want a typical bank’s reach or a credit union’s customized service, always shop around and compare the interest lenders and terms each lender has to offer. Even if refinancing with your current mortgage lender is simple, it may not be the best option.

Everything is negotiable. Following your application, your lender is required to present you with a Loan Estimate. Compare the fees indicated on the document under “origination charges.” Negotiate to have a fee deleted or decreased if you are unhappy with it.

What is your mortgage’s true cost?

Take a look at the APR, or annual percentage rate. This figure includes all of the mortgage’s costs, including the interest rate and fees.