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Mortgage refinancing is the process of negotiating a new mortgage contract while continuing to live in your existing home. You'll have a closing with a lender that potentially grants you a lower rate or a longer or shorter term and could possibly give you cash back as credit for the equity you’ve already paid into your former mortgage.
Like a new home purchase, administrative costs could range from 2% to 6% of your new loan amount. Refinancing is usually best done when you plan to stay in your existing home for several years so you can recoup these closing costs.
We've reviewed 18 mortgage refinance companies to find eight that are the best fit based on different circumstances because refinancing your mortgage can be a smart financial move or a costly one. Review our best mortgage refinance companies closely before deciding to refinance to learn the finer points and hidden gems that can help you make the best refinance decision for you.
Best Mortgage Refinance Companies of 2023
- Best Overall: Quicken Loans (Rocket Mortgage)
- Best All-in-One Service: Nationwide Home Loans
- Best for Customer Service: AmeriSave Mortgage
- Best Online Lender: LenderFi
- Best Bank: Bank of America
- Best Credit Union: Alliant Credit Union
- Best for Fees: Better.com
- Best for Veterans: Navy Federal Credit Union
Best Overall : Quicken Loans (Rocket Mortgage)
- Minimum credit score: 620 (580 for FHA)
- Closing costs: Between 3% and 6%
- Availability: All 50 states
Our best overall lender, Quicken Loans, has begun operating its refinancing as Rocket Mortgage. It lends in all 50 states, refinances conventional, jumbo, and all government-guaranteed loans, and has a streamlined online process.
Accepts minimum credit score of 620, FHA minimum credit score of 580
Offers rate and term as well as cash-out loans
Conventional, jumbo, and government-backed loans
It doesn't look at alternative credit data such as employment and income data
It doesn't offer long rate locks in areas where shelter-in-place orders exist
Must use their sister company, Amrock, in order to use the eClosing option
Quicken Loans is a streamlined refinance lender with an "everywhere" reach and "everything" loan type offering that earned our best overall lender spot. It has a couple of ways to streamline the application process, including its online application through Rocket Mortgage and electronic loan closings.
Quicken's eClosing is an in-person/electronic hybrid of closing with either an in-person electronic notarization (IPEN) or a remote online notarization (RON). This greatly reduces paperwork. You can use it in all 50 states, but customers must use Quicken's sister company, Amrock, as their title provider. Typically, closing costs run between 3% and 6% of the property loan.
Quicken also offers an array of loan options, including FHA, VA, conventional, HARP, Jumbo, 15- and 30-year fixed, and adjustable-rate mortgages. Loans are available for almost any type of home in all 50 states, and Quicken will consider loans with a minimum 620 credit score for conventional loans and 580 for an FHA loan.
This longstanding Detroit, Michigan-based company was founded in 1985 and enjoys a top-rated reputation offering in-person customer service, online chat, and phone support.
Read the full Quicken Loans Review.
Best All-in-One Service : Nationwide Home Loans
- Minimum credit score: 580
- Closing costs: Varying
- Availability: Only eight states
An in-house lender with loan types that span the real estate spectrum, custom term capabilities, and a best-rate guarantee, Nationwide Home Loans can’t be beaten for all-in-one service.
Best rate guarantee
Custom loan terms
Only operates in eight states: California, Colorado, Texas, Idaho, Washington, Oklahoma, Montana, North Dakota
Minimum credit score of 580
Nationwide Home Loans was a near-miss for best overall only because it operates in just eight states. As our best for all-in-one service, it guarantees the lowest rate. You’ll have a consultative experience as they listen to your goals and design terms that fit your needs with rates and fees lower than anywhere else.
Nationwide Home Loans offers terms from five to 30 years, including terms specific to each client because it's an in-house lender. It can write a custom loan for a 22-year term if you owe 22 years on your loan.
It bases loan prices on a combination of interest, credit, loan-to-value ratio (LTV), and debt-to-income ratio (DTI). The higher your credit score is, the lower your interest rate will be as a result. Nationwide will work with you to improve your credit score to get you qualified if you're outside this range.
Nationwide Home Loans defines excellent customer service as focusing on the customer and finding what works for each person’s unique goals. Additionally, its turn-times are much faster than the industry average.
It operates exclusively in California, Colorado, Texas, Idaho, Washington, Oklahoma, Montana, and North Dakota as of 2023.
Nationwide Home Loans has been around since the mid-90s and it's received nothing but 5-star reviews. The company’s founder has been lending since the 80s and offers a rare product line that most lenders don't provide.
Best for Customer Service : AmeriSave Mortgage
- Minimum credit score: 620 (580 for FHA and 640 for USDA)
- Closing costs: Undisclosed
- Availability: All 50 states
AmeriSave offers a detailed rate quote with low rates for a variety of loan options in a convenient online process that only takes a few minutes to complete. This makes it our favorite for customer service.
Customers can search interest rates and loan options without an obligation
No hidden fees
Quotes are accurate and aren't estimates
You must have a exterior and interior appraisal done
Manufactured or mobile homes are not allowed
Customers can't change jobs or make a large purchase during the loan process
The convenience and upfront transparency that AmeriSave has built into its online features earn the lender our vote for best customer service.
The customer can search interest rates, select the loan that suits them, and apply online or with a loan originator on the phone in three steps. There are no commitments or obligations to search for a loan and no hidden fees. Agents will schedule a closing at a location and time that are convenient for you after they've underwritten the loan.
Loan options include fixed-rate, FHA, VA, USDA, cash-out, and adjustable mortgage rate (ARM) loans. Down payments can be as low as 3% for first-time buyers, and mortgage insurance is not required for those putting down more than 20% on a conventional loan.
Those seeking loans must have a credit score of at least a 580 for FHA loans and they must maintain their current job throughout the loan process. And those seeking a loan can't make other major purchases, such as a vehicle, during the process.
AmeriSave began in Atlanta and it's licensed in all states except New York. It's funded more than $84 billion in loans and has financed more than 325,000 homes.
Best Online Lender : LenderFi
- Minimum credit score: 620
- Closing costs: Varying
- Availability: All states but Hawaii, Missouri, Nevada, New York, and Utah
LenderFi took the lead as our best online lender thanks to its online, no-hassle features where customers can search rates without handing over all their personal information. They can get instant online approval and a rate lock with no lender fees.
Customers can close on their loans within two weeks of applying
No lender fees
Keeps mortgage rates current for online application
Not available in Hawaii, Missouri, Nevada, New York, and Utah
No home equity loans
It doesn't offer information on minimum borrowing requirements without applying
LenderFi owns the best online lender title with no lender fees, instant online approval, and the option to talk to a loan consultant by phone.
It offers many loan options for purchases and refinancing, including conventional FHA loans. It doesn't offer jumbo, VA, or USDA loans as of 2023 but it plans to in the future. LenderFi offers products for single-family homes, multi-family homes, condominiums, co-ops, townhouses, manufactured homes, and planned-unit developments.
LenderFi can close loans in as little as two weeks. It offers rate insurance if LenderFi rates drop as little as 0.25% from your current rate. LenderFi will rewrite your loan at no additional cost for the life of the loan. The qualifying factor is that you must make at least six current payments and this excludes prepaid interest.
LenderFi has been in business since 2006 and it offers competitive fees for a variety of loan options nationwide except in Hawaii, Missouri, Nevada, New York, and Utah.
This is a non-bank lender that cuts costs by using an interactive online system to streamline expenses and eliminate unnecessary fees. Based in Florida, LenderFi can process loans from origination to closing using its own finances so customers deal solely with one company from beginning to end.
Best Bank : Bank of America
- Minimum credit score: 620 (640 for FHA and 660 for VA)
- Closing costs: Offers a $600 reduction for Preferred Reward clients
- Availability: All 50 states
With a robust suite of refinance loan options, Bank of America stands out as the best bank for refinancing.
Interest rates run from 2.625% for a 5/1 ARM to 3.250% for a 30-year fixed loan
Preferred Reward clients can qualify for up to a $600 reduction in the mortgage origination fees
Minimum credit score applies, but is not disclosed.
Can’t refinance your USDA mortgage
Closing fees are on the higher end
Bank of America is our best bank for refinancing because it can refinance many loan types and it offers online, phone, and branch services. Interest on refinancing for a 30-year fixed-rate loan is 3.250% and 2.500% for a 15-year fixed-rate loan. A 5/1 ARM has an interest rate of 2.625%.
Current BOA customers can qualify for a reduction of up to $600 in closing fees when it refinances. The bank also offers online mortgage applications to get pre-qualified, pre-approved, and lock in your rate through its website or mobile app.
Those seeking to refinance into a BOA loan must have a credit score of at least 620 for a conventional loan, 640 for an FHA loan, and 660 for a VA loan.
Bank of America is a traditional bank option offered in all 50 states. Interest rates start at 2.500% and can go up to 3.250%. This is a traditional bank so customers can expect to produce much more personal documentation than with alternative lenders. This can include employment information, tax returns, and other papers related to your current property.
Bank of America is one of the world’s largest banks with an established reputation for stability.
Read the full Bank of America Review.
Best Credit Union : Alliant Credit Union
- Minimum credit score: Undisclosed
- Closing costs: Higher than other lenders on our list
- Availability: Online, all 50 states
Alliant Credit Union can refinance your mortgage and waive the mortgage insurance that other lenders charge, making it our best choice for credit unions.
Will refinance non-warrantable condos
Shop rates online
Doesn’t refinance government-backed mortgages
Higher fees than other lenders in our list
No branches for in-person consults
Alliant can help you maximize your savings when you're trying to refinance your loan saddled with mortgage insurance into a lower rate and payment. It will waive the insurance, making it our favorite choice among credit unions.
Alliant offers several mortgage loan options with personalized service from one of their mortgage experts, including free customized quotes and rate locks for 90 days on refinancing. Alliant offers mortgage financing nationwide.
Founded in 1935 in Chicago, Illinois, Alliant Credit Union carries $12 billion in assets for 500,000 customers and it's grown to be one of the largest credit unions in the country. Alliant Credit Union serves its customers completely online and has live phone representatives available 24/7. It has 80,000 fee-free ATMs across the country.
Best for Fees : Better.com
- Minimum credit score: 620
- Closing costs: Lowest among those surveyed
- Availability: All 50 states
Better.com is a game-changer in the mortgage industry and our top choice for the best mortgage refinance company for low fees.
Lowest cost loans
Can add title or homeowners insurance
Close within three weeks
No jumbo refinance
620 credit score required
No branches to meet in person
Deservedly our best for fees, Better.com has a quick, easy mortgage refinance process that offers you the lowest closing costs with three-minute pre-approvals and three-week closings. You'll save on costs because there are no application, underwriting, or origination fees. It offers instant loan estimates and transparency. Better.com also offers title and homeowners' insurance.
Its refinance rates range is on the lower end, but you'll have to buy points to hit the lowest rates. Their refinance products don't include adjustable-rate products, FHA, or other government-backed mortgage programs. Better.com refinances in every state provided that you meet their minimum 620 credit score requirement.
Better.com started in 2014 and partnered with California originator Avex Funding, which specialized in both prime and jumbo mortgages. Better.com acquired Avex Funding in 2015 and began offering digital loans.
It's approved as a Fannie Mae seller and servicer, can offer FHA loans, and has relationships with 17 top mortgage investors like Goldman Sachs, American Express, and Citibank, making it easy to offer several different products for its customers.
Better.com has dropped jumbo mortgage servicing to concentrate on loans aimed at low- to median-income customers since it acquired Avex.
Best for Veterans : Navy Federal Credit Union
- Minimum credit score: Lowest rates go to those with scores of at least 740
- Closing costs: Varying
- Availability: You must be a Navy Federal Credit Union member to qualify
Benefits like a rate match guarantee, a Military Choice program for veterans who have exhausted their VA loan benefit, and a free rate lock are just a few of the reasons why NFCU is the best mortgage refinance company for veterans.
Military Choice program for those who have used their VA loan benefit
Rate lock protects against rising rates
Rate match guarantee
Must be a member of NFCU
Rates for refinance loans where the existing lender is not NFCU are subject to a 0.750% higher rate
One of the top VA loan lenders, Navy Federal Credit Union (NFCU), can do so much more than simply offering the VA loan program to veterans who want to refinance their mortgages. With programs like Military Choice, rate match guarantee, and rate lock, Navy Federal is our favorite choice for veterans.
Their Military Choice program provides similar rates and terms to the VA loan program for those who have used their VA loan benefit. Rate lock keeps your rate the same during the application process if rates rise. You'll have 60 days to relock if rates fall at the lower rate.
Their VA loans carry interest rates as low as 2.250% and APRs as low as 2.718% with 10- to 30-year terms. These rates require a 1% loan origination fee, but that can be waived for a 0.25% increase in interest rate if you choose. A $250,000 VA loan refinanced to 15 years at 2.250% interest and 2.718% APR will have a monthly principal and interest payment of $1,637.
Their Military Choice program has interest rates as low as 4%, APRs as low as 4.276%, and 16- to 30-year terms. While not as low as the VA loan, this is a very competitive refinance program for veterans who have exhausted their VA loan option.
You must be a Navy Federal Credit Union member to qualify for their refinance programs. You can qualify to join NFCU if you fall into one of these categories:
- Active duty, retired, or veterans of any branch of the U.S. armed forces
- Families and members of those individuals' households (includes grandparents and grandchildren)
- Department of Defense employees, contractors, retirees, and annuitants
NFCU performs thorough underwriting, so it considers everything from earnings and debt to loan repayment history. It doesn't have a set credit minimum, but the lowest mortgage interest rates are reserved for applicants with credit scores of at least 740 and a debt-to-income ratio (DTI) below 36%.
Most home types qualify, including mobile and manufactured homes, but the home must be permanently fixed to the land. Wheels, axles, and hitches must be removed It must have permanent water and sewer connections.
Customer service options include 24/7 phone support, online chat and social media, secure email, and in-person at a branch. NFCU lends in 50 states and has branches worldwide wherever there's a military installation.
Navy Federal Credit Union was formed in 1933 and has grown to 10 million member-owners. The not-for-profit company was rated the Most Reputable Company in Financial Services for 2019 by Reputation Institute and ranked number one for Customer Experience Among Multi-Channel Banks and Credit Unions in Forrester's 2019 U.S. Customer Experience Index survey.
Read the full Navy Federal Credit Union Review.
The Final Verdict
Refinancing your home comes with potential pros and cons, so it should be based on your current financial and life situation balanced with your future goals. Refinancing could lower your payment and give you a check at closing to use for any reason you like. It also may move you into a fixed rate and consistent payments. Shortening the term may enable you to pay off your home faster.
But refinancing does set a new time clock. You’ll pay off your home later than the original mortgage if you refinance a loan with 22 years left on it into a new 30-year term. It could raise your monthly payment if you shorten your term by refinancing from a fixed-rate 30-year term into a fixed-rate 15-year term because your new note is spread across fewer months. There are some closing costs when you refinance, so it’s probably not worth doing if you plan to move within a few years.
We recommended Quicken Loans over the other winners on this list because it offers a variety of rates, terms, and loan types designed to suit people with different savings, equity, credit scores, and home types.
|Best Mortgage Refinance Companies|
|Lender||Why We Picked It||Where It Lends|
|Quicken Loans (Rocket Mortgage)||Best Overall||Nationwide|
|Nationwide Home Loans||Best All-in-One Service||California, Colorado, Texas, Idaho, Washington, Oklahoma, Montana, North Dakota|
|AmeriSave Mortgage||Best for Customer Service||Nationwide except New York|
|LenderFi||Best Online Lender||Nationwide except Hawaii, Missouri, Nevada, New York, and Utah|
|Bank of America||Best Bank||Nationwide|
|Alliant Credit Union||Best Credit Union||Nationwide|
|Better.com||Best for Fees||Nationwide|
|Navy Federal Credit Union||Best for Veterans||Nationwide, worldwide wherever there is a U.S. military installation|
Frequently Asked Questions
What Is Mortgage Refinancing?
Mortgage refinancing occurs when a homeowner applies to a lender for a new mortgage on their existing property. The new lender pays off the debt owed to the former lender at the closing for the refinance. The homeowner now has a new mortgage note with the new lender.
There are two types of mortgage refinances. One is a cash-out, the other a rate-and-term. If the homeowner qualifies for a cash-out refinance, the new lender gives them cash back at closing based on the equity they'd already built up in their former mortgage balance. A rate-and-term refinance allows the homeowner to get into a new mortgage with a lower rate and a new term length than their previous contract.
Is Mortgage Refinancing a Good Idea?
Mortgage refinancing is a good idea under many circumstances, such as if you have an adjustable-rate mortgage and a lender allows you to move into a fixed rate so that you have a predictable principal and interest payment for the life of the loan. You’ll most likely want to refinance if it lowers your monthly payment, too. Another reason is that you may want to pay off your home faster. If so, a refinance could move you from a mortgage that has 24 years remaining on its term into a new 15-year mortgage.
With all these upsides to a refinance, it’s considered a good financial move to either get rid of a HELOC you may have or, if you specifically do a cash-out refinance, so you can use that cash from your equity to fund a home improvement project or other expense.
What Costs Are Involved in Refinancing My Mortgage?
The costs involved in refinancing your mortgage typically include application fees, origination fees, and processing fees, as well as an appraisal to verify the value of your home, which affects the size of your new mortgage and the potential amount of cash you can take out. These fees are either paid out of pocket or you may roll them into your new loan. They'll be deducted from the cash-out you were expecting if they're rolled into your new loan.
It’s important to compare refinance lenders and it's worth it to shop around because they set most of their own fees. Some lenders don’t charge application, lender, and origination fees, so don’t accept them as a standard cost everywhere you go.
Is It Better to Refinance With Your Current Lender or Broker?
Your best choice can depend on why you want to refinance. You might do better with a different lender if you're looking for a lower rate. It can be beneficial to shop around a bit and compare rates as well as fees and loan terms.
But your existing lender may be willing to lower your current rate to keep your account, and they should still have all your pertinent information on file so the application process will be much easier.
We reviewed 18 refinance companies to select these best eight. We made sure their rates were competitive, and we preferred lenders with lower fees than the competition. Except in a few cases, we favored lenders who were licensed nationwide. The lenders we awarded as best-in-class in a category but don’t lend nationwide made our list because they had an offering that really set the bar high.
We wanted our best refinance lenders to offer a variety of term lengths, fixed and variable rate choices, accepted lower credit score minimums, and financed several types of homes. To be determined as one of the best, they must be inclusive of homeowners with different financial situations and home types. As always, customer service ratings, convenience, and reputation needed to be stronger than the competition to win one of our categories.
Businesswire. "Navy Federal Recognized for the Best Reputation in Financial Services."
Navy Federal Credit Union. "Navy Federal Credit Union Earns “CX Elite” Status and is Top Multi-Channel Bank/Credit Union for Customer Experience."