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Best Mortgage Refinance Lenders of December 2021
Find out how to refinance your mortgage to lower your interest rate, tap equity or change your loan type.
Advertising Disclosure: Some of the loan offers on this site are from companies who are advertising clients of U.S. News. Advertising considerations may impact where offers appear on the site but do not affect our editorial independence.
Refinancing your mortgage can lower your monthly payment and save you money in the long term – especially if you can take advantage of current low interest rates. Before you make a move, though, do your homework. Learn how mortgage refinancing works, how to choose a mortgage refinancing company and how to decide whether refinancing your home is right for you.
What Are the Best Mortgage Refinance Lenders of 2021?
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Lender | Learn More | Min. Down Payment | Min. Credit Score |
|---|---|---|---|
 PrimeLending 4.7 | 3% | 620 | |
 Axos Bank 4.7 | 5% | 620 | |
 Chase 4.6 | 3% | Not disclosed | |
| Not disclosed | Not disclosed | ||
 PNC Bank 4.4 | 3% | 620 | |
| 3% | 620 | ||
| 3% | 620 | ||
 AmeriSave 4.4 | 3% | 620 | |
| 3% | 620 | ||
| 3% | 620 |
To calculate each score, we use data about the lender and its loan offerings, giving greater weight to factors that matter most to borrowers. For mortgage lenders, we take into account each company’s customer service ratings, interest rates, loan product availability, minimum down payment, minimum FICO score and online features.
The weight each scoring factor receives is based on a nationwide survey on what borrowers look for in a lender.
To receive a rating, lenders must offer qualifying loans nationwide and have a good reputation within the industry. Read more about our methodology.
Best for digital customer care
Before You Apply
- Mortgage types: Conventional, Fixed Rate, ARM, Refinancing, FHA, VA, Jumbo, USDA
- Minimum FICO credit score: 620
- Minimum Down Payment: 0.03
- Better Business Bureau rating: A+
Best Features
Homebuyers can choose from a variety of mortgage products.
Home loans are available nationwide.
Down payment and closing cost assistance is available.
Best for online mortgages with cash back rewards
Before You Apply
- Mortgage types: Conventional, FHA, VA, Fixed-Rate, ARM, Jumbo, Home Equity Loans, HELOC, Refinancing
- Minimum FICO credit score: 620
- Minimum Down Payment: 5%
- Better Business Bureau rating: A+
Best Features
Earn 3% annualized cash back — 0.25% monthly — if you have an Axos Bank checking account and use it pay your mortgage.
Reduce or eliminate the $995 lender fee with an Axos Bank checking account.
On-time closing is guaranteed for buyers of single-family homes.
Access mortgage lona consultants to discuss your home financing needs.
Before You Apply
- Mortgage types offered: Conventional, FHA, VA, Fixed Rate, ARM, Jumbo, Refinancing
- Minimum FICO credit score: Not disclosed
- Minimum Down Payment: 3%
- Better Business Bureau rating: A+
Best Features
Down payments as low as 3% are accepted.
Fixed- and adjustable-rate mortgages are available.
Before You Apply
- Mortgage types: Conventional, FHA, Fixed Rate, ARM, Jumbo, Refinancing, VA
- Minimum FICO credit score: Not Disclosed
- Minimum Down Payment: Not Disclosed
- Better Business Bureau rating: A+
Best Features
Fixed and adjustable-rate mortgages are available. A lender credit for third-party closing costs is available for many loans. <br/>Loans are offered in 49 states; ConsumerDirect Mortgage does not lend in Maryland.
Before You Apply
- Mortgage types: Conventional, Fixed Rate, FHA< VA, ARM, Jumbo, HELOC, Refinancing
- Minimum FICO credit score: 620
- Minimum Down Payment: 3%
- Better Business Bureau rating: A+
Best Features
Multiple types of mortgages are available.
PNC supplies an online home ownership cost tool.
Some mortgage options require no or low down payments.
Before You Apply
- Mortgage types: Conventional, Fixed Rate, VA, FHA, ARM, Refinancing
- Minimum FICO credit score: 620
- Minimum Down Payment: 3%
- Better Business Bureau rating: A+
Best Features
The company has multiple mortgage options, including low-down-payment loans and loans where you set your term length.
You can choose between fixed- or adjustable-rate loans.
Best for borrowers with bad credit
Before You Apply
- Mortgage types: Conventional, FHA, VA, USDA, Fixed Rate, ARM, Refinancing
- Minimum FICO credit score: 620
- Minimum Down Payment: 3%
- Better Business Bureau rating: A+
Best Features
Applicants with credit scores as low as 500 are accepted for some products.
The Home Possible Advantage loan program can require a down payment of as little as 3%.
Before You Apply
- Mortgage types: Conventional, Jumbo, Fixed Rate, ARM, FHA, VA, USDA, Refinancing
- Minimum FICO credit score: 620
- Minimum Down Payment: 3%
- Better Business Bureau rating: A+
Best Features
FHA, VA and USDA loans are available, in addition to conventional fixed-rate and adjustable-rate mortgages.
Potential borrowers can get prequalified without a hard credit inquiry.
Borrowers can complete the majority of the application process online.
Before You Apply:
• Mortgage types offered: ARM, Conventional, FHA, Fixed Rate, Jumbo, Refinancing, USDA, VA
• Minimum FICO score: 620
• Minimum Down Payment: 3%
• Better Business Bureau rating: A+
Best Features
Offers wide selection of mortgages.
Prequalifies borrowers.
Helps qualify borrowers with fair credit.
Focuses on FHA and VA loans.
Before You Apply
- Mortgage types: Conventional, Fixed Rate, FHA, ARM, VA, Refinancing, Jumbo,
- Minimum FICO credit score: 620,
- Minimum Down Payment: 3%,
- Better Business Bureau rating: A+
Best Features
Rocket Mortgage services 99% of the loans it originates.
The company offers customizable loan terms.
The digital application process is user-friendly, and loan status information is always available.
Rocket Mortgage has an excellent customer service reputation.
What Are the Latest Mortgage Rates?
Locking in a low mortgage rate today can save you thousands over the life of your loan. Compare your mortgage rate offers with national average trends.
U.S. News Survey: Ultralow Mortgage Rates Fuel a Refinancing Frenzy in 2020
In 2020, homeowners rushed to refinance, hoping for lower interest rates, lower monthly payments or perhaps both, as mortgage rates hit historic lows.
With rates igniting a refinancing boom, U.S. News in fall 2020 surveyed homeowners who refinanced within the previous six months to find out their goals and results. The survey revealed that many people refinanced to lock in low interest rates, yet failed to properly shop around for the lowest rates.
Among the other key survey findings:
- Record-low interest rates drove more than 75% of respondents to refinance.
- Reducing interest rates and monthly payments were the main reasons cited for refinancing.
- Most respondents didn’t cash out equity.
- Fewer than a quarter of respondents said they adequately shopped for the lowest interest rates.
More than half of respondents refinanced to get lower interest rates; more than a quarter did so to reduce their monthly payments.
More than three-quarters of respondents said historically low interest rates were the main reason they decided to refinance.
Lowering total interest cost was important to 84% of respondents.
Most respondents didn’t refinance to tap equity, but about 14% did a cash-out refinance to pay for major expenses and nearly 6% to alleviate COVID-19 financial pressures.
Almost half of respondents had their home loans for five years or less before refinancing.
Refinancing resulted in lower monthly mortgage payments for 60% of respondents, and about 19% now have higher payments.
A lower monthly mortgage payment was important to about 70% of respondents.
About half of respondents didn’t change their mortgage terms, but more than 30% now have shorter repayment terms.
Although many homeowners refinanced to get lower interest rates, only 22% of respondents got rate quotes from at least three lenders.
Survey methodology:
- U.S. News ran a nationwide survey in September and October 2020.
- The survey sample came from the general American population, and the survey was configured to be representative of this sample.
- The survey was screened to include homeowners who refinanced their mortgages within the last six months.
- The survey asked 10 questions related to refinancing a mortgage.
Where Mortgage Refinance Rates Are Heading
Mortgage rates hovered around 3% in early October in the midst of rising economic and financial uncertainties. As with home prices, mortgage rates are expected to continue rising, according to Freddie Mac.
How Does Refinancing Work?
A mortgage refinance replaces your original mortgage with a new one, ideally with a lower interest rate. You’ll get a new interest rate and other loan terms, and you can make other changes to the loan, such as trading an adjustable-rate mortgage for a low fixed-rate mortgage.
The lender pays off your old home loan, and you begin making payments on your new mortgage.
What Are the Different Types of Mortgage Refinancing?
Here are three common types of refinance loans for mortgages:
- Rate-and-term refinance. This is the most common type of mortgage refinancing. You’ll take the balance of your original mortgage and borrow at a different rate and terms. You should get a lower interest rate, and you can switch from an adjustable-rate loan to a fixed-rate loan or vice versa. For example, you could refinance a 30-year adjustable-rate mortgage to a 15-year fixed-rate loan.
- Cash-out refinance. This alternative to a home equity loan can offer a change of interest rate and other terms, but you’ll increase your balance. It gives you cash at closing, which is added to your mortgage balance.
- Cash-in refinance. This is less common than rate-and-term refinance or cash-out refinance. You’ll bring cash to the closing table to pay down your loan balance with this type of mortgage refinance. It’s an interest-saving option if you’ve got the cash to do it because this type of loan can offer a lower mortgage rate, shorter repayment term or both.
Why Might You Want to Refinance Your Mortgage?
Mortgage refinancing makes sense when you can use it to save on interest, access home equity or both. Consider some reasons people refinance a mortgage:
- Interest savings. A lower mortgage refinance rate will reduce your monthly mortgage payment, as long as you do not borrow more money or shorten your loan term. In fact, a new loan with a lower rate might help you build equity in your home faster than you would with a higher interest rate. Shorter loan terms, such as switching from a 30-year to a 15-year fixed-rate mortgage, can also offer interest savings and allow you to pay off your mortgage sooner.
- Longer terms and lower monthly payments. Longer loan terms, such as a 30-year fixed-rate mortgage, will lower your monthly payment. Usually, a mortgage with a longer term will have a lower monthly payment than a mortgage with a shorter term. But the longer you take to pay off your loan, the more interest you will pay overall.
- Switching from an adjustable rate to a fixed rate. Converting from an adjustable-rate to a fixed-rate loan locks in your interest rate, preferably at a lower rate. You may want to do this if mortgage refinance rates are low and you plan to stay in your home for more than a few years.
- Switching from a fixed rate to an adjustable rate. Some homeowners who plan to move within a few years choose to switch from fixed-rate loans to adjustable-rate mortgages. Compared with a fixed-rate mortgage, an ARM could provide a lower rate for the first few years. That means big interest savings if you won’t live in your house for long.
- Converting home equity into cash. Cash-out refinancing converts your home equity into cash that you can use to pay for home improvements or to pay off debts, such as a second mortgage or a high-interest credit card balance. But exercise caution with your home equity; avoid using it to finance short-term expenses for what could amount to long-term debt.
What Do I Need to Refinance My Home?
To refinance your home, you’ll need to prove your creditworthiness and income as you would with any other mortgage. But refinancing adds another layer: home equity.
Generally, home loan refinance lenders require a minimum credit score of 620 for standard loans. But you could qualify for refinancing with special programs, such as government-backed loans, if you have a lower credit score.
Before you apply for a refinance, put yourself in the best position to get a good interest rate and terms. Check your credit, and identify errors and areas for improvement. Pay down any balances and correct mistakes on your credit report.
You’ll also need sufficient income to qualify for your refinance. If your income has stayed the same or increased while your home loan balance decreased, you should have no problem with approval. But if your pay has dropped, or you plan to add to your balance by taking a cash-out refinance or by combining a first and second mortgage, expect more scrutiny from your lender for approval.
Most lenders won’t approve a loan with a monthly mortgage payment that’s more than 30% of your total gross monthly income. For example, if you earn $5,000 per month, your monthly mortgage payment shouldn’t be more than $1,500.
Lenders assess your loan-to-value ratio to determine risk. LTV measures how much you owe on your home loan compared with your home’s market value. Typically, mortgage refinancing companies look for at least 20% home equity and an LTV ratio of up to 80%.
How Much Does Refinancing Cost?
You'll pay fees to refinance, just as you would for a brand-new mortgage. Expect to pay closing costs similar to your original mortgage, generally about 2% to 3% of the loan amount. This may include lender fees, such as the origination fee, and the third-party fees for inspection and appraisal.
Before you refinance, make sure you do the math: For a $300,000 home loan refinance, plan to spend $6,000 to $9,000 on closing costs.
No-closing-cost refinancing may be available, but you can bank on paying a higher interest rate with this type of loan.
How to Choose a Mortgage Refinance Company
Picking the right lender is key. You can narrow down lenders based on mortgage products offered, interest rates and customer service ratings.
Mortgage products
Choosing the best mortgage refinancing company starts with finding one that offers the refinancing product you want. Mortgage lenders offer a variety of refinancing loans, including:
- 15-year fixed-rate mortgage refinance.
- 30-year fixed-rate mortgage refinance.
- Federal Housing Administration refinance.
- Department of Veterans Affairs refinance.
- U.S. Department of Agriculture refinance.
- Adjustable-rate mortgage refinance.
- Jumbo loan refinance.
Mortgage refinance rates
Once you find the right product, you can find the right price. Prequalify with a few mortgage refinance lenders to compare mortgage rates, and find out whether you meet minimum credit score requirements.
Shopping around allows you to compare interest rates side by side. They may look similar, but even a fraction of a percentage point can lower your monthly mortgage payment and save you a lot of money over time, especially on a larger loan.
As you compare rates, be sure to look at the APR. The APR reflects the interest rate and other costs, and it represents the true annual cost of a loan.
Mortgage refinance company customer service ratings
Because mortgage refinancing is a long-term commitment, choose a refinance company that can offer good customer service. Read reviews, ratings and complaints to find out what other consumers have to say about a lender.
Check the Better Business Bureau to find mortgage lender ratings, and visit the Consumer Financial Protection Bureau’s Consumer Complaint Database to learn about common grievances. You can also consider your own experiences: You can refinance with your current mortgage company if you’re happy with its service and it offers competitive products.
How to Refinance Your Mortgage
- Gather information. Lenders need details about your original mortgage – like the interest rate and the balance on your current loan. Much of this information is on your mortgage statement.
- Prequalify. Prequalifying uses a soft credit inquiry, so your credit score won’t be affected. It allows you to see the loan amount, interest rate and other terms you can expect if you apply. Be sure to shop around to find which lender is right for you.
- Apply. Once you determine which refinance loan is best for you, fill out the application. You’ll need to include documentation such as proof of home insurance, your most recent pay stubs, and a driver’s license or other form of identification.
- Field follow-up questions from the lender. The lender may have other questions for you after reviewing your application, such as asking you to explain an employment gap.
- Order a home appraisal, if needed. Often, the lender will work with you to set up an appointment for an appraiser to take measurements and photos of your home. This is usually an upfront cost for you.
- Schedule closing. Your lender will take care of a few more underwriting and behind-the-scenes tasks. If your appraisal is satisfactory, you can schedule closing.
- Sign documents at closing. You should receive your closing disclosure prior to actually closing, and you should compare this with the estimate you received at the outset of the refinancing process. Just like when you initially bought your home, closing involves signing multiple documents.
- Get set up with your new lender. Your escrow company and your former mortgage company will be paid after you close on your new loan. As you’re between mortgage companies, you may have some time between closing and when your first payment on your new loan is due.
When Is Refinancing Not a Good Idea?
A mortgage refinance is not the best decision for everyone. Here are some reasons you might want to stick with your loan:
- You’ve had your mortgage for a long time. If you’ve had your loan for a long time – generally, at least 10 years for a 30-year loan – you reach a point where you’ve paid most of the interest and are building equity. When you refinance a loan, you restart the loan amortization process and revert to paying more interest than principal.
- Your current mortgage has a significant prepayment penalty. Some lenders charge a prepayment penalty, which is a fee for paying off your loan early, even to refinance. If you refinance with your current mortgage company, you can request that this fee be waived. If the fee can’t be waived, factor that into your break-even calculations. Find your break-even point – when your savings are equal to the costs of your new loan – by dividing your total closing costs by your monthly savings.
- The fees outweigh the savings. If you want a lower interest rate to save money over time, you’ll only achieve your goal if you own the property long enough for the lower monthly payments to offset closing costs.
- You plan to sell your home in the next few years. If you sell your home before you break even on the cost of a refinance, you could waste money by refinancing the loan.
How Often Can You Refinance Your Home?
Technically, there’s no legal limit to the number of times you can refinance your mortgage. But lenders may have restrictions on how often you can refinance within a short period of time, and there are other factors to consider.
Remember that there are certain costs associated with refinancing. You may need to pay closing costs, including inspection and appraisal fees, title insurance, and attorney review fees.
Make sure you understand the terms and conditions of your home loan before applying for another one. Depending on the lender and the terms of your current loan, you may face a prepayment penalty if you pay it off early.
There may also be a waiting period between loans you can take out. Some lenders may require you to wait six months before refinancing with that particular lender again, regardless of the loan type, while others may not require a waiting period for a rate-and-term refinance for a conventional loan. Most government-backed loans typically do have a time requirement.
For a cash-out refinance, keep in mind that you must have enough equity built up in your home to take cash out against it. So not only might you have to be in the home for six months before refinancing, but you also need to make sure you have enough equity in your home for a cash-out refinance to be possible and make sense for your situation.
Regardless of the type of loan you apply for when you refinance, you'll still have to meet the lender's credit score and debt-to-income ratio requirements.
View More Best Mortgage Refinance Lenders
Before You Apply
- Mortgage types: Conventional, Fixed Rate, FHA, VA, ARM, USDA, Refinancing
- Minimum FICO credit score: 620
- Minimum Down Payment: 0.03
- Better Business Bureau rating: A+
Best Features
PennyMac accepts a 50% debt-to-income ratio for conventional loans in some instances.
Online capabilities include a 24/7 access center and email status updates.
Before You Apply
- Mortgage types: Conventional, Fixed Rate, ARM, Jumbo, FHA, VA, USDA, Refinancing
- Minimum FICO credit score: 620
- Minimum Down Payment: 3%
- Better Business Bureau rating: A+
Best Features
Borrowers can choose from a variety of mortgage products.
Wells fargo offers specialized loans with additional loan options.
Borrowers can get prequalified and apply online.
Before You Apply
- Mortgage types: ARM, Conventional, FHA, Fixed Rate, Jumbo Refinancing, USDA, VA
- Minimum FICO credit score: Not Disclosed
- Minimum Down Payment: 3%
- Better Business Bureau rating: A+
Best Features
Offers FHA, USDA and VA loans.
Provides a doctor loan program.
Supplies an online mortgage application.
Before You Apply
- Mortgage types: ARM, Conventional, FHA, Fixed Rate, Home Equity Loans, Jumbo, Refinancing, USDA, VA
- Minimum FICO credit score: 620
- Maximum Down Payment: 10%
- Better Business Bureau rating: A+
Best Features
Flagstar Bank provides a broad selection of mortgages.
Some mortgages require no or a low down payment.
Before You Apply
- Mortgage types: Conventional, Fixed, FHA, VA, ARM, HELOC, Jumbo, Refinancing
- Minimum FICO credit score: Not disclosed
- Minimum Down Payment: 5%
- Better Business Bureau rating: A+
Best Features
Bank of America has a variety of mortgage products.
The lender offers origination fee discounts for qualifying Bank of America and Merrill Lynch clients.
Home equity lines of credit have no annual, application or cash advance fees or closing costs.
Bank of America offers a first-time homebuyer program.
Best for low-interest VA loans
Before You Apply
- Mortgage types: ARM, Conventional, Fixed Rate, Home Equity Loans, Refinancing, VA
- Minimum FICO credit score: Not disclosed
- Maximum Down Payment: 5%
Best Features
Zero-down loans are available.
Private mortgage insurance is not required for many loans.
Before You Apply
- Mortgage types: Conventional, Fixed, ARM, Refinancing, Jumbo, HELOC
- Minimum FICO credit score: Not Disclosed
- Minimum Down Payment: 3%
- Better Business Bureau rating: A+
Best Features
No-down-payment mortgages are available for first-time homebuyers with excellent credit.
Those who buy or sell through the Alliant Home Rewards program are eligible for cash back rebates.
Before You Apply:
- Mortgage types: ARM, Fixed Rate, Conventional, FHA, VA, USDA, Refinancing, Jumbo, Interest only
- Minimum FICO credit score: 620
- Minimum Down Payment: 0.05
- Better Business Bureau rating: A-
Best Features
Provides qualifying borrowers with a fully or partially digital closing process
Offers several mortgage loan products
Best for Veterans Affairs loans
Before You Apply:
- VA loan products available: Jumbo, Refinancing, VA
- Minimum FICO credit score: Not Disclosed
- Minimum Down Payment: 0
- Better Business Bureau rating: A
Best Features
Rates well for customer service.
Specializes in VA loans.
Offers VA Interest Rate Reduction Refinance Loans, also known as IRRRL or streamline refinance.
Before You Apply
- Mortgage types: Conventional, FHA, VA, USDA, Fixed, ARM, Refinancing
- Minimum FICO credit score: 620
- Minimum Down Payment: 3%
- Better Business Bureau rating: A+
Best Features
The first-time homebuyer program HomeOne can require a down payment of as little as 3% and borrowers may qualify with a minimum 620 credit score.
Government-insured loans including Federal Housing Administration, Veterans Affairs, and United States Department of Agriculture programs are available.
Advertising Disclosure: Some of the loan offers on this site are from companies who are advertising clients of U.S. News. Advertising considerations may impact where offers appear on the site but do not affect any editorial decisions, such as which loan products we write about and how we evaluate them. This site does not include all loan companies or all loan offers available in the marketplace.