Learn how refinancing works and how to compare lenders so you can save money, lower your monthly mortgage payments or access your home equity.
If you’re looking to reduce your monthly payments, lower your rate or cut back on fees, consider your mortgage refinance options.
Ana Lopez, community development lending manager for Community Partners of South Florida, explained that refinancing could help you increase your home equity and pay off your mortgage faster:
“Refinancing is typically best for a homeowner when there are tangible benefits, such as a rate reduction, removing someone from the title or term reduction,” Lopez explained.
Using my five years of financial writing experience and Benzinga’s in-depth methodology, I researched and found some of the best refinance lenders.
Quick Winners List
- Best VA Refinance Lender: Navy Federal Credit Union
- Best Cash-Out Refinance Lender: LoanDepot
- Best FHA Streamline Refinance Lender: New American Funding
- Best Online Refinance Lender: SoFi
- Best Refinance Lender for Bad Credit: NorthPointe Bank
- Best Refinance Lender for Investment Properties: Rocket Mortgage
Best VA Refinance Lender: Navy Federal Credit Union
Pros:
- Several financing options for service members
- Fantastic interest rates
- Credit score flexibility
- High max LTV
- Transparent fees
- Excellent Trustpilot rating
Cons:
- Membership requirements
- Poor Android app rating
Navy Federal specializes in financial products with competitive rates and lower fees for military members, making it one of the best VA refinance lenders. You may be eligible for a no-refi rate drop if you already have your mortgage through the credit union.
Although it doesn’t have USDA or FHA loans, Navy Federal provides various refinancing options for service members. Its Military Choice loan lets you borrow even if you’ve maxed out your VA loan benefit.
The credit union offers top-tier customer service. Members rate Navy Federal highly on Trustpilot, with 4.5 stars. The lender provides 24/7 phone support and has over 360 branches worldwide for overseas military members.
Minimum credit score: Not disclosed
Minimum down payment: 0%
Loan types offered: Conventional, VA, jumbo
States served: Not disclosed
Best Cash-Out Refinance Lender: LoanDepot
Pros:
- Direct mortgage lender
- “No Steering” policy
- Fee transparency
- Extended customer support hours
- Great Trustpilot rating
- Excellent mobile app reviews
Cons:
- Prepayment penalty in some states
- Some reported negative customer experiences
LoanDepot is a direct mortgage lender that can originate and fund loans without a broker or middleman. This means the lender could offer lower rates and faster approvals, making it potentially one of the best cash-out refinance lenders if you need money quickly.
The company has a “No Steering” policy, so its employees won’t pressure you into loans that aren’t in your best interest. LoanDepot also doesn’t list its rates online to avoid misleading customers with APRs for which they can’t qualify.
The company has a great 4.0-star rating on Trustpilot. While some customers report communication issues and delays in the loan process, most reviewers say they’ve had an excellent experience with LoanDepot.
Minimum credit score: 580
Minimum down payment: 3.5%
Loan types offered: Conventional, FHA, VA
States served: All 50 states
Best FHA Streamline Refinance Lender: New American Funding
- Best For:RefinancingVIEW PROS & CONS:securely through New American Funding Refinance's website
Pros:
- Several refinance options (including streamline FHA)
- No appraisal required
- Credit score flexibility
- Great interest rates
- Highly rated mobile apps
- Excellent Trustpilot ratings
Cons:
- Advertised rates include 3.0 discount points
- Refinance fees not disclosed
If you want a faster refinance, a streamline FHA with New American Funding (NAF) could be the way to go. NAF also offers FHA cash-out refinances if you want to access some of your home equity.
While NAF guarantees a 14-business-day closing for purchase loans, it doesn’t specify a timeline for refinances. However, with flexible credit requirements, no appraisal and less paperwork, an FHA streamline refinance could help you close faster than other financing options.
NAF customers rate the lender highly on Trustpilot, commending its support team and simple application process. Its mobile apps also have excellent reviews on Google Play and the Apple App Store.
Minimum credit score: 580
Minimum down payment: 3%
Loan types offered: Conventional, FHA, USDA, VA
States served: All 50 states
Best Online Refinance Lender: SoFi
Pros:
- Simple online application
- Highly rated mobile apps
- Competitive interest rates
- Various loan options
- High max LTV
- Excellent Trustpilot rating
Cons:
- Must provide email to view rates
- Doesn’t list fees on its website
As a financial technology company, SoFi offers an easy online application and a mobile app with excellent ratings on Android and Apple, making it one of the best digital refinance lenders. Its customers rate SoFi highly on Trustpilot, praising its service representatives and streamlined loan process.
SoFi has several financing options, including conventional, VA, FHA and jumbo loans; however, it doesn’t offer USDA loans. You can also access either rate-and-term or cash-out refinancing through SoFi.
Along with some of the best student loan refinance rates, SoFi also has excellent mortgage APRs. However, you’ll have to provide your email address to view its refinance rates.
Minimum credit score: 580
Minimum down payment: 3%
Loan types offered: Conventional, VA, FHA, jumbo
States served: All 50 states (no refinance in NY)
Best Refinance Lender for Bad Credit: NorthPointe Bank
Pros:
- Credit score flexibility
- Accepts borrowers with past significant credit events
- Loan amounts up to $1,000,000
- Rate/term and cash-out refinancing available
- Transparent fees
- Highly-rated mobile apps
Cons:
- Rates not listed on its website
- No phone support on weekends
Through NorthPointe Bank’s New Start loan program, you can qualify for mortgage refinancing up to $1,000,000 with a minimum credit score of 580. This is more flexible than most lenders, who require a 620 credit score.
The program is also open to borrowers who have experienced significant credit events up to the application date. While NorthPointe doesn’t specify which events qualify, they could include bankruptcy, foreclosure or repossession.
NorthPointe Bank’s mobile apps on Apple and Android have great reviews. With its HOME feature, you can apply for a loan, upload documents, communicate with your advisor and track the status of your financing.
Minimum credit score: 580
Minimum down payment: 0%
Loan types offered: Conventional, FHA, USDA, VA
States served: All 50 states
Best Refinance Lender for Investment Property: Rocket Mortgage
- Best For:Online MortgagesVIEW PROS & CONS:securely through Rocket Mortgage (formerly Quicken Loans)'s website
Pros:
- Several refinance options (including for investment properties)
- Competitive interest rates
- Easy application process
- Excellent Trustpilot rating
- Highly-rated mobile apps
Cons:
- No USDA loans
- No branch locations
Rocket Mortgage offers diverse loan options, including refinancing for investment properties (it also made our list of best jumbo mortgages). Rocket's great interest rates may provide much-needed relief if you’re paying a high APR on a rental property.
Refinancing an investment property can be more complex and may require more documentation. However, since Rocket Mortgage provides a streamlined online application process, it may be the best option to avoid unnecessary headaches.
The company had one of the best Trustpilot scores of the lenders I considered, with 4.9 stars from over 7,000 reviews. Its website is also packed with information on refinances and offers many great resources.
Minimum credit score: 580
Minimum down payment: 1%
Loan types offered: Conventional, FHA, VA, jumbo
States served: All 50 states
What is a Mortgage Refinance Lender?
A mortgage refinance lender is a financial institution, such as a credit union, bank or fintech company, that issues a new home loan to replace your existing one.
You might want to refinance your mortgage to secure a better interest rate, decrease your monthly payments or reduce your term length. Refinancing also allows you to move to a different type of home loan. For example, you could switch from an adjustable-rate mortgage to a fixed-rate mortgage.
If you’re wondering how to refinance your mortgage, you can do so through your current lender or go to a different one. Comparing the best refinance lenders ensures you get the lowest rates and pay less in fees.
Costs of Refinancing
Although refinancing your mortgage can have many advantages, you should be fully aware of the costs associated with your new loan.
“When refinancing, closing cost fees also play a big role in this process,” Lopez said. “Borrowers need to review the Loan Estimate that will show the closing cost amount.”
According to Freddie Mac, the closing costs for refinancing can range between 2% and 6% of the mortgage's principal.
“Closing costs can be rolled into the refinance loan if there’s enough equity,” continued Lopez. “But if not, then the borrowers will need to pay out of pocket.”
Lopez also advised asking your lender about any additional fees and carefully reviewing the Loan Estimate to ensure no hidden charges.
Types of Mortgage Refinancing
When you refinance your mortgage, a few options will likely be available. The best refinance lenders may offer the following types of loans:
- Rate-and-term refinance: This is the standard option for switching to a new mortgage with a different rate or term length.
- Cash-out refinance: When you switch to your new mortgage, you can add cash from your home equity to your total loan amount.
- Cash-in refinance: Instead of taking additional cash out when you refinance, you pay a lump sum toward your new mortgage to lower your total balance.
- Streamline refinance: With less paperwork and underwriting, you can speed up your VA, FHA or USDA loan refinance with this option.
- Reverse mortgage: Homeowners 62 and older can replace their existing mortgage with a new one to lower their interest rate, access their home equity or switch mortgage types.
Why You Should Trust Us
Founded in 2010, Benzinga is a financial news and data platform that helps everyday investors manage their finances. We provide market news, investment insights, stock analysis and more to approximately 25 million monthly readers.
I, Carley Clark, the author of this piece, have been writing about finance since 2020. Before that, I worked at a casino as a revenue auditor in the finance department. I also earned a bachelor’s degree in business from Spring Arbor University in 2018.
I interviewed Ana Lopez about some of the ins and outs of refinancing for this article. Lopez is the community development lending manager (NMLS #340649) at Community Partners of South Florida, a nonprofit organization. She has worked in finance for over 15 years and holds a Bachelor of Science in Business, Health Care Management and Human Resources from Park University.
Methodology
I analyzed 28 mortgage companies using Benzinga's multi-point methodology to find the best refinance lenders. Rate competitiveness and fees were weighted most heavily since they tend to have the greatest impact on borrowers.
Along with rates and fees, I considered the lender's offerings of various loan types, including FHA, VA, USDA, jumbo and home equity loans.
Since customer service is another important aspect for borrowers, I checked reviews from Trustpilot, the BBB website, Zillow and Reddit. In addition to customers’ reported experiences, I also considered the available support channels and their hours and days of operation.
The application process also factored into my evaluation. Lenders that let you apply online scored higher, along with those with faster closing times and highly rated mobile apps.
Credit score flexibility was the last key part of the methodology. Most financial institutions require a 620 credit score to qualify for financing, so if a lender had lower minimum requirements, they scored higher.
If I couldn’t find the details of a lender’s refinancing, such as rates or closing times, I used the information for its mortgages. If I couldn’t find that information, I assigned a medium score for that category. When two lenders tied or scored very closely to each other, I considered any advantages or disadvantages outside of the standard methodology.
You can read Benzinga's full mortgage methodology to learn how we choose the best refinance lenders.
Frequently Asked Questions
At what point is it not worth it to refinance?
Refinancing a mortgage could cost somewhere between 2% to 6% of your total loan amount, according to Freddie Mac. If the cost to refinance outweighs the amount you would save from, for example, getting a lower interest rate or consolidating debt, then refinancing would not be worth it.
Is it cheaper to refinance with a current lender?
Some lenders may offer discounts or waive fees for existing customers as a loyalty benefit. However, moving to a new lender may be worth it if you find a better rate or fewer fees elsewhere.
Is it better to refinance with a bank or mortgage company?
Mortgage companies often offer faster approvals, more competitive rates and lower credit score requirements. However, banks may offer better customer service and more financial products, such as savings and checking accounts. You should consider your preferences to find the best refinance lenders.
At what point is it not worth it to refinance?
Refinancing a mortgage could cost somewhere between 2% to 6% of your total loan amount, according to Freddie Mac. If the cost to refinance outweighs the amount you would save from, for example, getting a lower interest rate or consolidating debt, then refinancing would not be worth it.
Is it cheaper to refinance with a current lender?
Some lenders may offer discounts or waive fees for existing customers as a loyalty benefit. However, moving to a new lender may be worth it if you find a better rate or fewer fees elsewhere.
Is it better to refinance with a bank or mortgage company?
Mortgage companies often offer faster approvals, more competitive rates and lower credit score requirements. However, banks may offer better customer service and more financial products, such as savings and checking accounts. You should consider your preferences to find the best refinance lenders.
Sources
- Ana Lopez, community development lending manager NMLS #340649 at Community Partners of South Florida, via email interview on Feb. 13, 2025.
- Freddie Mac, “Investment Property Mortgages,” retrieved on Feb. 17, 2025.
- Freddie Mac, “What Are the Costs of Refinancing,” retrieved on Feb. 17, 2025.
- Online lender information sourced from company websites, including Navy Federal Credit Union, LoanDepot, New American Funding, NorthPointe Bank, SoFi and Rocket Mortgage.
- Review data sourced from Trustpilot, the Better Business Bureau (BBB), the Apple App Store and Google Play.
About Carley Clark
Carley Clark is a seasoned financial writer based in Michigan. She’s written for several well-known publications, including CNN Underscored, FinanceBuzz, ConsumerAffairs and more. Before writing professionally, Carley worked as a revenue auditor in the finance department of a casino.