If you're saddled with a high mortgage rate,refinancingcan get you a better rate and terms, pay off your loan faster or even convert your home equity into cash.
You can also refinance to swap anadjustable-rate mortgagefor a fixed-rate loan.
CNBC Selecthas chosen the best mortgage refinance lenders, based on rates, fees, customer service and other factors. (Seeourmethodologyfor more on how we made our selections.)
Best mortgage refinance lenders
- Best for cash-out refinance:Rocket Mortgage
- Best for low rates:Better
- Best for no lender fees:Ally Bank
- Best for existing bank customers:SoFi
- Best foravailability:PNC Bank
- Best credit union:PenFed Credit Union
- Best for VA loan refinancing:USAA
- Best for USDA loan refinancing:Pennymac
- Best for jumbo loan refinancing:Chase Bank
Best for cash-out refinance: Rocket Mortgage
Rocket Mortgage Refinance
Annual Percentage Rate (APR)
Apply online for personalized rates
Types of loans
Conventional loans, FHA loans, VA Interest Rate Reduction Refinance Loan (IRRRL) and jumbo loans
Fixed-rate Terms
8 – 29 years
Adjustable-rate Terms
Not disclosed
Credit needed
580 if opting for FHA loan refinance or VA IRRRL; 620 for a conventional loan refinance
Already have a mortgage through Rocket Mortgage or looking to start one? Check out the Rocket Visa Signature Card to learn how you can earn rewards
Pros
- Can use the loan to refinance a single-family home, second home or investment property, or condo
- Can get pre-qualified in minutes
- Rocket Mortgage app for easy access to your account
- Allows borrowers to cash out 100% of their home's equity
Cons
- Doesn't offer USDA loans, HELOCs, construction loans, or mortgages for mobile homes
Who's this for?Rocket Mortgagewill fund a cash-out refinance for qualified borrowers at 100% equity. Most lenders cap cash-out refinances at 80% to 90% of home equity.
Standout benefits:Rocket's average closing time for refinance loans is 21 days, nearly half the national average. With the Overnight Underwrite process, borrowers can get verified approval in as little as two hours.
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Best for low rates: Better
Better.com Mortgage Refinance
Annual Percentage Rate (APR)
Apply online for personalized rates
Types of loans
Conventional, FHA and jumbo
Fixed-rate terms
15–30 years
Adjustable-rate terms
Not disclosed
Credit needed
Not disclosed
Terms apply.
Pros
- No origination fees
- Lower rates than many competitors
- Online preapproval available in as little as three minutes
Cons
- Doesn't offer USDA loans
- No mobile app
- No branch locations
Who's this for:Betteris the smart bet for budget-minded refinancers.In addition to having lower-than-average rates, this online lender doesn't charge lenders fees.
Standout benefits:The Better Buying Guarantee provides borrowers with up to $3,500 in lender-paid credits if they decide to refinance with Better within three years of their initial closing.
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Best for no lender fees: Ally Bank
Ally Home
Annual Percentage Rate (APR)
Apply online for personalized rates; fixed-rate and adjustable-rate mortgages included
Types of loans
Fixed-rate, adjustable-rate and jumbo loans available
Fixed-rate Terms
15 – 30 years
Adjustable-rate Terms
5/6 ARM, 7/6 ARM, 10/6 ARM
Credit needed
Not disclosed
Terms apply.
Pros
- Doesn't charge lender fees (no application, origination, processing, or underwriting fees)
- Provides custom quotes in just a few minutes with no impact to your credit score
- Online support available
- Existing Ally customers can receive a discount that gets applied to closing costs
- Cash-out refinancing available
Cons
- Doesn't offer FHA loans, USDA loans, VA loans or HELOCs, however, Ally allows borrowers to refinance from an FHA, USDA, or VA loan to a conventional loan
- Mortgage loans are not available in Hawaii, Nevada, New Hampshire, or New York
Who's this for:Ally Bankdoesn't charge application, origination, processing or underwriting fees, which can equal up to 2% of your overall loan amount.
Standout benefits: According to Ally, the average time to close on refinancing is 10 days less than the industry average.
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Best for existing bank customers: SoFi
SoFi Mortgage Refinance
Annual Percentage Rate (APR)
Apply online for personalized rates
Types of loans
Conventional loans and jumbo loans
Fixed-rate Terms
10 – 30 years
Adjustable-rate Terms
Not disclosed
Credit needed
620
Terms apply.
Pros
- Provides access to Mortgage Loan Officers for guidance
- Access to account via the mobile app
- Members save $500 on processing fees for a cash-out refinance
Cons
- Doesn't offer FHA, VA or USDA loans
- Available in all states except Hawaii
Who's this for: ExistingSoFicustomers with a personal or student loan or an investment account with more than $50,000 can save $500 on their processing fee when refinancing.
Standout benefits:If your refinance mortgage doesn't close on time, you may be eligible for a $10,000 closing-cost credit.
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Best for availability: PNC Bank
PNC Bank Mortgage Refinance
Annual Percentage Rate (APR)
Apply online for personalized rates; fixed-rate and adjustable-rate mortgages included
Types of loans
Fixed-rate, adjustable-rate, FHA loans, VA loans and jumbo loans
Fixed-rate Terms
10 – 30 years
Adjustable-rate Terms
Available in periods of 7 and 10 years for a fixed rate, followed by an adjustment period when the interest rate may increase or decrease on an annual or semi-annual basis
Credit needed
Not disclosed
Terms apply.
Pros
- Refinance available for primary and secondary homes, and investment properties
- Offers a wide variety of loans to suit an array of customer needs
- Offers refinancing for VA and FHA loans
- Available in all 50 states
- Online and in-person service available
Cons
- Doesn't offer home renovation loans
Who's this for:PNC Bankoffers refinancing nationwide and borrowers can apply online or at one of 2,200 branches in 28 states.
Standout benefits:PNC customers with $500,000 or more in deposits or investments may qualify for a discount on rates or fees.
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Best credit union: PenFed Credit Union
PenFed Credit Union Mortgage Refinance
Annual Percentage Rate (APR)
Apply online for personalized rates
Types of loans
Rate-and-term refinance (for conventional, FHA and VA refinances), VA Interest Rate Reduction Loan (IRRRL), cash-out refinance, home equity line of credit (HELOC)
Fixed-rate Terms
Not disclosed
Adjustable-rate Terms
N/A
Credit needed
Not disclosed
Terms apply.
Pros
- Covers cost of VA funding fees, title fees, recording fees, transfer taxes, appraisal fee, credit report and flood certification where applicable
- Offers jumbo loan refinance up to $3 million
- Online support available
- Available in all 50 states
Cons
- Doesn't offer USDA loans
- Doesn't offer adjustable-rate terms
Who's this for: Like many credit unions,PenFedhas lower refi interest rates. But its membership requirements are simpler than most: To join, you only need to open a savings account with an initial deposit of just $5.
Standout benefits:PenFed doesn't charge closing costs on IRRRLs and has a closing credit worth up to $1,500 for other kinds of refinancing.
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Best for VA loan refinancing: USAA
USAA Bank Mortgage
Annual Percentage Rate (APR)
Apply online for rates.
Types of loans
Conventional, VA, Jumbo, refinance
Terms
Apply for terms
Credit needed
620
Minimum down payment
0% for VA loan, 3% for conventional, 3.5% for FHA
Pros
- Available in all 50 states
- Geared towards veterans
- Lower-than-average rates
Cons
- Does not offer FHA loans
- Does not offer USDA loans
- Does not offer home equity loans or home equity lines of credit
- Only veterans, servicemembers and some others can join bank.
Who's this for: One of the largest providers of VA loans in the U.S.,USAAoffers VA Interest Rate Reduction Refinance Loans (IRRRL), which can help borrowers qualify for a lower rate without a home appraisal or credit check.
Standout benefits:Borrowers aren't charged origination fees on VA loans. In addition, USAA offers VA cash-out refinance loans.
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Best for USDA loan refinancing: Pennymac
Pennymac
Annual Percentage Rate (APR)
Fixed-rate and adjustable-rate available, apply online for rates.
Types of loans
Conventional, FHA loans, VA loans, Jumbo loans
Terms
15-year to 30-year
Credit needed
620 for conventional and VA loans, 580 for FHA loans
Minimum down payment
3.5% with FHA loan
Pros
- Borrowers can get $1,000 towards closing costs with BuyerReady Certification, Pennymac's preapproval guide
- Borrowers can earn up to $9,500 if they use an agent through Pennymac Home Connect
- Robust educational first-time homebuyer guide and others on site.
- A+ accreditation from the Better Business Bureau
- Available in all 50 states
- Borrowers can secure their rate for 90 days with Lock & Shop feature
Cons
- No brick-and-mortar locations
- No USDA loans
- Does not offer HELOC loans
Who's this for:Pennymacoffers USDA streamlined assist refinancing, which can help borrowers with little home equity refinance to a lower rate without an appraisal or inspection.
Standout benefits:Pennymac's Flex Term refinance mortgages allow borrowers to set their payoff timeline.
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Best for jumbo loan refinancing: Chase Bank
Chase Bank
Annual Percentage Rate (APR)
Apply online for personalized rates; fixed-rate and adjustable-rate mortgages included
Types of loans
Conventional loans, FHA loans, VA loans, jumbo loans and proprietary low-down-payment DreaMaker℠ and Standard Agency mortgages.
Terms
10 – 30 years
Credit needed
620
Minimum down payment
3% for DreaMaker℠ or Standard Agency loan
Terms apply.
Read our Chase mortgage review
Pros
- Chase DreaMaker℠ loan only requires 3% down payment
- Existing customers eligible for rate reduction
- Above-average customer satisfactionscores
- Closing timeline guarantee
- Homebuyer grants of up to $7,500
Cons
- No USDA loans or HELOCs
- No closing guarantee for refinancing
- Chase homebuyer grant only available in select areas.
Who's this for:Chaseapproves refinancing on jumbo loans up to $9.5 million. far more than many competitors.
Standout benefits:Existing Chase Bank customers may earn a rate discount of 0.125% to 1.00%. Chase's on-time closing guarantee allows borrowers to receive $5,000 if your closing happens later than promised.
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More on our top mortgage lenders
Rocket Mortgage
The second largest mortgage provider in the U.S., online lenderRocket Mortgageoriginated nearly 289,000 home loans worth $78 billion in 2023. It was ranked second for mortgage origination in J.D. Power's 2023 survey and came in first for mortgage servicing.
Nationwide availability
Available in all 50 states and Washington, D.C.
Minimum credit score
620
Minimum down payment
1% with conventional loans, 3.5% for FHA loans, 0% for VA loans
Types of mortgages
Conventional, FHA, VA, HomeReady, Home Possible, Rocket ONE+, jumbo, refinancing, home equity loan
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Ally Bank
Online lenderAlly Banktraces its roots back to 1919, when General Motors launched the General Motors Acceptance Corporation (GMAC) to provide financing to its customers. It rebranded as Ally Financial in 2010,and began offering direct-to-consumer home loans in 2016.Ally doesn't offer government-backed purchase or refinance mortgages, like FHA or VA loans, but it does issue Fannie Mae-backed HomeReady loans, which only require 3% down and a DTI of 50%.
Nationwide availability
Available in all 50 states and Washington, D.C.
Types of mortgages offered
Conventional, HomeReady, jumbo, refinancing
Minimum credit score
620
Minimum down payment
3% with conventional loans
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Better
E-lenderBetter Mortgagewas founded in 2014 by fintech entrepreneur Vishal Garg, who continues to helm the company today. The Better Business Bureau gave Better an A rating and an uncommonly high.4.21 out of 5 stars for customer reviews. However, it ranked below average onJ.D. Power's 2023 U.S. Mortgage Origination Satisfaction Study.
Nationwide availability
Available in all 50 states and Washington, D.C.
Types of mortgages offered
Conventional, FHA, VA, HomeReady, HomeOne, jumbo, refinancing, HELOC
Minimum credit score
620 for conventional loan, 580 for FHA loan
Minimum down payment
3% with conventional loans, 3.5% with FHA loans, 0% with VA loans
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SoFi
SoFiwas started as a student loan refinancing operation at Stanford University but has expanded to offer a portfolio of financial services, including more than $7.5 billion in mortgages. While it has an A+ rating from the Better Business Bureau, SoFi was not included on J.D. Power's mortgage origination and servicer surveys and was rated below average on the 2024Direct Banking Satisfaction Study.
Nationwide availability
Available in all 50 states and Washington, D.C.
Types of mortgages offered
Conventional, FHA, VA, HomeReady, Home Possible, jumbo, refinancing, HELOC
Minimum credit score
600
Minimum down payment
3% with conventional loans, 3.5% with FHA loans, 0% with VA loans.
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PNC Bank
PNC Bankis one of the ten largest mortgage originators in the U.S. by volume. It received an A+ rating from the Better Business Bureau but ranked poorly for customer satisfaction on J.D. Power's mortgage origination and servicing surveys.
Nationwide availability
Available in all U.S. states and Washington, D.C.
Types of mortgages offered
Conventional, FHA, USDA, VA, HomeReady, Home Possible, jumbo, refinancing, HELOC
Minimum credit score
620 for conventional
Minimum down payment
3% with conventional, 3.5% for FHA loans, 0% with USDA loans, 0% with VA loan
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PenFed Credit Union
PenFed, or Pentagon Federal Credit Union, began as a financial institution for service members and veterans but has expanded to accept anyone whoopens a PenFed account with an initial deposit of at least $5.
Nationwide availability
Available in all U.S. states and Washington, D.C.
Types of mortgages offered
Conventional, jumbo, refinance, FHA, VA, HomeReady, jumbo, refinancing, HELOC
Minimum credit score
620
Minimum down payment
3% with conventional loans, 3.5% with FHA loans, 0% with VA loans
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USAA
USAA, or the United Services Automobile Association, was founded to provide car insurance to U.S. Army officers in the 1920s. Today it offers insurance, banking and investment products to service members, veterans and their families and is among the largest originators of VA loans in the country.
Nationwide availability
Mortgages are available in all 50 states and Washington, D.C. Cash-out refinancing is not available in Texas
Types of mortgages
Conventional, VA, jumbo, refinancing
Minimum credit score
640 for VA loans
Down payment minimum
3% for conventional loans, 0% for VA loans
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Pennymac
Headquartered in Westlake Village, California, online lenderPennymacis a leading mortgage provider, with newly originated home loans totaling $99 billion in 2023. It earned an A+ rating from the Better Business Bureau but ranked well below average on J.D. Power's mortgage origination survey.
Nationwide availability
Available in all U.S. states and the District of Columbia
Types of mortgage offered
Conventional, FHA, USDA, VA, HomeReady, Home Possible, HomeOne, jumbo, refinancing, home equity loan
Minimum credit score
620 for conventional, 500 for FHA loans, 620 for VA loans
Minimum down payment
3% for conventional, 3.5% for FHA loans, 0% for USDA loans, 0% for VA loans
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Chase Bank
The largest bank in the U.S.,Chase Bankhas branches in 48 states and mortgage advisors in 38. It has high rankings from J.D. Power for mortgage origination and servicing and an A+ from the Better Business Bureau.
Nationwide availability
Available in all 50 states and the District of Columbia
Types of mortgages
Conventional, FHA, VA, DreaMaker, jumbo, refinancing
Minimum credit score
620 for conventional, 500 for FHA loans, 620 for VA loans
Minimum down payment
3% for DreaMaker, 3.5% for FHA loan, 0% for VA loans
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Shop for the right homeowners insurance
Types of mortgage refinancing
Refinancing a mortgage gives you a new loan that covers the outstanding balance on your existing mortgage. There are several different types of refinance mortgages.
| Refinance type | What is it? |
|---|---|
| Rate-and-term refinance | Changes your loan's term length and/or interest rate |
| Cash-out refinance | Uses the value of your home to get a cash loan |
| Streamline refinance | Lets borrowers with an FHA, USDA or VA loan refinance with less documentation and underwriting |
| No-closing cost refinance | Closing costs are rolled into the new loan or the borrower pays a higher interest rate |
| Short refinance | Lender refinances your mortgage for less than you owe. Typically used to avoid foreclosure |
Mortgage refinancing requirements
While requirements vary from lender to lender, here are some general requirements for different types of refinancing.
| Type of mortgage | Minimum credit score | Maximum DTI ratio |
|---|---|---|
| Conventional (rate-and-term or cash-out) | 620 | 50% |
| FHA loan | 580 | 45% |
| VA loan | 620 | 41-50% |
| USDA loan | 640 | 41-46% |
| Jumbo loan | 700 | 45% |
Pros and cons of refinancing
The benefits and drawbacks of refinancing your mortgage
Pros
- Lower rate and monthly payments
- Opportunity to access cash from home equity
- Can switch between adjustable-rate and fixed-rate mortgage
Cons
- Closing costs are typically 2% to 5% of the new loan amount
- Your credit score could take a temporary hit
- Your loan term could be longer
- With cash-out refinancing, monthly payments can be significantly larger
FAQs
How often can you refinance your mortgage?
There is no limit on how often you can refinance a home loan. But each time you do, you'll have to pay closing costs, which can run to 5% of your loan total, and your credit score will take a hit when your lender reviews your application.
Do I have to refinance with my current lender?
You can refinance with a new lender or your existing mortgage company. Staying with the same lender may make things easier and save you on fees, but a different company may have a better rate or terms.
How much does refinancing a mortgage cost?
Closing costs on a refinance mortgage are typicallybetween 2% and 5% of the total loan amount. These fees average about $5,000, according to Freddie Mac.
Do I have to get a home appraisal to refinance?
An appraisal is commonly required when refinancing, but it may be waived by the underwriter or if you have a government-backed streamlined refinance.
Does refinancing hurt your credit?
Potential lenders will run a hard inquiry on your credit during the application process, which can temporarily lower your credit score by a few points.
Why trust CNBC Select?
AtCNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every mortgage lender review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of home loan products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. Seeour methodologyfor more information on how we choose the best mortgage refinance lenders.
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Our methodology
To determine which mortgage refinance lenders are the best,CNBC Selectanalyzed dozens of U.S. mortgages. When narrowing down and ranking the best refinancemortgages, we focused on the following features:
- Types of mortgage refinancing loans offered:The most common mortgage loans include conventional loans, FHA loans and VA loans. Lenders may also offer USDA loans and jumbo loans. Having more options available means the lender can cater to a wider range of applicants.
- Closing timeline:Theaverage closing timelineon a refinance mortgage is 42 days. We considered lenders who may close faster and who offered on-time closing guarantees.
- Fees:Common fees associated with mortgage applications include origination fees, application fees, underwriting fees, processing fees and administrative fees.
- Flexible minimum and maximum loan amounts and terms:Each lender provides financing options that can be customized based on your budget and how much time you need to repay your loan.
- Streamlined application process:We considered whether lenders offered a convenient, fast online application process and/or an in-person procedure at local branches.
- Customer support:Lenders on our list provide customer service via telephone, email or secure online messaging. We also opted for lenders with an online resource hub or mobile app.
- Minimum down payment:Although down payment requirements vary by the type of loan, we noted lenders that offer specialty loans with lower down payment minimums.
After reviewing the above features, we sorted our recommendations by best for cash-out refinance, best for low rates, best for no lender fees, best for existing bank customers, best for availability, best credit union, best VA refinancing, best USDA refinancing and best jumbo loan refinancing.
We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.
Rates and fee structures cited for mortgage refinances fluctuate based on the Federal fund rate
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Read more
Best lenders for a home equity line of credit (HELOC)
The pros and cons of refinancing your home
When to refinance your mortgage
Best reverse mortgage lenders
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
