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Utilizing your home’s equity can be a wise choice, whether you’re looking to pay off high-interest debt, support a home remodel, pay for college tuition, or make progress toward another financial objective. This can be accomplished through a cash-out refinance, in which you refinance your mortgage for more than what you owe and cash out the difference.
Numerous mortgage lenders offer cash-out refinancing, and we reviewed several of them to identify the best options. In 2022, here are our recommendations for the best cash-out refinance lenders.
Rocket Mortgage has a loan portfolio that is typical of nonbank lenders. Conventional loans, FHA loans, and VA loans are available with fixed or adjustable interest rates. In addition to the usual 15- or 30-year mortgage, a customized fixed-rate conventional loan with a period ranging from eight to 29 years is available.
On its homepage, Rocket Mortgage provides sample rates for fixed-rate buy and refinance loans, and you can obtain more detailed rate information by visiting the rates page. There, you’ll find their most current interest rates and APR, as well as the points you’d need to buy up front to get that rate and APR combination for 30- and 15-year fixed-rate house loans, as well as 30-year FHA and VA loans.
>> More: Rocket Mortgage Review
Better Mortgage is an exclusively online mortgage company based in New York City. Because of its money-saving incentives and easy application process, the company has been designated one of the finest cash-out refinance lenders.
Borrowers in 46 states can acquire a fast online cash-out refinance preapproval in minutes on most main loan types. Better’s rates and fees are available on its website, and the CFPB reports a lower-than-average rate of consumer complaints in 2020. (1 complaint per 1,000 loans).
>> More: Better Mortgage Review
Homeowners seeking a mortgage refinance can choose from any loans Guaranteed Rate offers for home purchases, including the FHA 203(k) and Fannie Mae HomeStyle renovation loans.
Guaranteed Rate’s refinance offerings all result in creating a new mortgage. However, refinancing may not be the ideal option if you want to extract some equity from your house. In such a scenario, consider having Guaranteed Rate arrange a home equity loan or line of credit through a partner lender on your behalf.
>> More: GuaranteedRate Mortgages Review
Veterans United Home Loans, founded in 2002, is a full-service direct mortgage lender with a workforce of over 4,700 employees. The lender is based in Columbia, Missouri, and specializes in VA loans, although it also provides several other lending products.
Refinancing options from Veterans United Home Loans include rate-and-term, cash-out, and VA Interest Rate Reduction Refinance Loans (IRRRLs, also known as VA streamline refinances). The lender publishes refinance rates on its website daily, and you can estimate your savings using its online refinance calculator.
>> More: Veterans United Home Loans Review
Chase offers a comprehensive selection of mortgage solutions with lower rates and costs than many other lenders. Chase gives up to $2,500 in grants to first-time homebuyers who use Dreamaker, FHA, or VA loans. Refinancers may also be eligible for $2,500 grants.
Chase previously offered home equity lines of credit (HELOC); however, these are now suspended. To get cash out of your home equity with Chase, you’ll need to do a cash-out refinance.
>> More: Chase Mortgages Review
Bank of America offers a variety of lending programs, including geographically targeted programs that might be especially beneficial to low- and moderate-income home buyers. The Charlotte, North Carolina-based lender provides a variety of purchase and refinance loans, including 15-, 20-, and 30-year fixed-rate loans and 30-year adjustable-rate mortgages with periods of 5/6, 7/6, and 10/6.
On the Bank of America website, borrowers can examine current refinance rates. Although quoted rates contain points, no lender costs are included. The refinance application process with the bank is similar to the purchase loan application process.
>> More: Bank of America Mortgage Review
Customers interested in refinancing with Caliber can do it online or by calling and speaking with one of their loan experts. Caliber has a checklist outlining the general processes needed in refinancing and notes that refinances can be completed in as little as ten days in some situations.
Their summary of the refinance procedure involves consulting with one of their loan advisers to discover the best loan for your particular circumstances. Since they only provide personalized rate quotations, users must consent to a hard credit pull to receive information about rates, fees, or reductions.
>> More: Caliber Home Loans Review
Alliant Credit Union mortgages can also be utilized to refinance an existing loan. You can also use the Alliant Advantage Mortgage program to refinance into a lender-paid mortgage insurance ARM if you have as low as 5% equity in your property. The credit union’s online rate quote tool provides a detailed explanation of refinancing fees, closing charges, and rates.
New American Funding provides a wide range of mortgage loans, including FHA and VA loans and cash-out refinance loans that do not require government insurance. Despite being family-owned, the mortgage lender is one of the largest in the country in terms of origination volume.
Because they provide a variety of VA and FHA refinance alternatives, they are an excellent resource for potentially utilizing a larger amount of the equity in your home if you qualify. Their current interest rates differ based on the length of the refinance. Their current pricing is deemed quite competitive in this sector.
>> More: New American Funding Review
LoanDepot is a top-10 refinance lender that offers a variety of purchase and remodeling home loans. LoanDepot has a lot of experience with refinancing. According to data from the Home Mortgage Disclosure Act, regular and cash-out refinances together accounted for more than 75% of the lender’s loan volume in 2021.
However, because the lender’s online mortgage application process requires you to interact with a loan officer over the phone, you won’t be able to complete the process entirely online.
>> More: LoanDepot Mortgage Review
SoFi offers purchase and refinance mortgages for primary and secondary residences that will be occupied for at least a year. Mortgages for investment properties are also available from the lender.
For a SoFi cash-out refinance, you can’t borrow more than 80% of the property value, and for other mortgage refinances, you can’t borrow more than 95%.
>> More: SoFi Home Loans Review