Refinancing your mortgage is one step you can take to reduce your monthly spending. In fact, by using a company to refinance your mortgage, you can get out of debt even faster.
With interest rates near historic lows, now can be a good time to refinance.
The sooner you refinance, the more money you can save if you qualify for a lower interest rate.
Consider these mortgage refinance lenders for competitive rates and flexible repayment terms to potentially pay off your mortgage faster.
Top Mortgage Refinance Companies
When you refinance student loans or auto loans, you may not pay any fees.
But, when you refinance a mortgage, expect to pay closing costs between 3% and 6% of your loan amount. These fees (closing costs) include the home appraiser and title change fees.
Comparing refinance rates from several lenders can help you find the best rates and affordable closing costs.
1. Credible
Credible makes the rate comparison process as you can get quotes from several lenders at once. You won’t pay an extra fee or a higher rate for the convenience.
It’s possible to get rates for conventional and federal refinance mortgages.
Pros
- Get quotes from multiple lenders
- No additional fee
- Multiple loan options
Cons
- Doesn’t underwrite loans you apply for
- Must apply directly from the lender to get an official rate quote
Trustpilot score: 4.9 out of 5
2. Veterans United Home Loans
Active and retired military members may like Veterans United Home Loans. They specialize in refinancing VA loans.
One option is their VA Streamline Refinance option. You may know this loan as an Interest Rate Reduction Refinance Loan (IRRRL). Both of these are the same loan, but have different names.
Depending on your loan and property value, you may avoid certain fees. First, select applicants can skip the appraisal fee. And, others might be able to waive the VA Funding Fee.
Also, you have the option to defer paying closing costs. Instead, Veterans United rolls them into the loan balance. This can be a good idea if you can’t afford the closing costs right now.
But, you will have a higher APR and monthly payment as a result. If possible, pay the fees now to pay less in interest.
To refinance, you must have a history of on-time payments. In the past 12 months, you can’t have any payments that were late by 30 days or more.
Pros
- Specializes in VA loans
- Can get an online quote
- 24/7 customer support
Cons
- May need to apply at a local branch
- Doesn’t show current rates without getting a quote
Trustpilot score: 4.9 out of 5
3. Reali
A growing mortgage refinance company is Reali. You won’t pay an application fee and the closing costs are minimal.
Reali is also a direct lender. That means you won’t be dealing with another bank to secure financing.
You can get a quote in three minutes. You can also use their refinance calculator to get a quick quote.
All refinance loans have a fixed interest rate.
Most loans take up to 30 days to close. Reali secures your interest rate for 45 days. If rates rise during the application process, you still pay the lower rate.
Pros
- Potentially low closing costs
- Fast application process
- Several customer support options
Cons
- No variable APR loans
- Must apply to see current rates
Trustpilot score: 4.7 out of 5
4. New American Funding
New American Funding lets you see your potential savings by getting a free quote. You may appreciate the company because they are family-owned.
You can start the process online or by calling the toll-free number. After seeing your rates, you will work with a dedicated loan officer.
To start the refi process, simply enter your remaining loan balance and current credit score. Currently, New York and Hawaii residents cannot refinance on the platform.
Pros
- Can apply online or by phone
- Work with a dedicated loan officer
- Available in most states
Cons
- Cannot see fees or rates until you get a quote
- Not available in every state
Trustpilot score: 4.6 out of 5
5. Better.com
Better.com tries the make the refi process as quick and transparent as possible. Their website says that they don’t charge any lender fees or agent commissions.
You can also view the current rates for fixed and adjustable rate loans without getting a personal quote.
Better.com focuses mostly on conventional and jumbo loans.
You can refinance your single-family home or investment property with 1-4 units. They’ll refinance townhomes and condominiums as well.
Pros
- Many conventional refinance loan options
- Can see rates without getting a personal quote
- Low closing costs and lender fees
Cons
- Doesn’t support VA or USDA loans
- Won’t refinance loans that LLCs hold
- Only available in 46 states and Washington, D.C.
Trustpilot score: 4.5 out of 5
6. AmeriSave
When comparing mortgage refinance rates, get a quote from AmeriSave.
After they provide a quote, you have three days to find a lower rate. If you do, AmeriSave matches the rate. Or, they give you $500 if you close with the other lender.
There four different refinancing options:
- 15-year fixed
- 30-year fixed
- 7-year Adjustable Rate Mortgage
- 30-year FHA (Federal Housing Administration)
You can start the pre-qualification process by entering your home address. The software can retrieve your current homeowner details and get a personalized rate that doesn’t hurt your credit score.
If you like your rate quote, you can apply for refinancing.
You may need to pay a $500 nonrefundable application fee. This fee is somewhat high but reduces your closing costs if you qualify and close on an AmeriSave refinance.
Pros
- Flexible repayment options
- Discloses lowest rates online
- Phone and live chat support
Cons
- Potentially high origination fees
- $500 non-refundable application fee
Trustpilot score: 4.2 out of 5
7. Rocket Mortgage
One of the largest mortgage refinance companies is Rocket Mortgage. It’s an offshoot of Quicken Loans. Like others on this list, the entire loan process takes place online.
It’s possible to view today’s current mortgage rates online. The online quote process is interactive and recommends loan terms using your refinance goals.
For example, do you want a lower monthly payment or pay off your loan faster?
You can apply for streamlined FHA loans. This loan spares you the expense of another home appraisal. And, your paperwork processes sooner.
Remember, you don’t begin saving money until you sign the closing papers. Speed is key and Rocket can be the fastest option if you qualify.
Also, Rocket underwrites 99% of the mortgages it issues. Many other lenders sell your loan to other banks. Maybe you’ll end up with a bank you’ve avoided because of poor service.
With Rocket Mortgage, expect them to service your loan the entire time.
Trustpilot score: 3.8 out of 5
8. LoanDepot
One of the oldest online mortgage refinance companies is LoanDepot. It’s well-liked because its agents don’t work on commission.
If your original mortgage is from LoanDepot, the company waives the lender fees when you refinance.
You can talk with a loan agent to find your best refinancing option if you have questions.
The entire application process takes place online and you can email or fax your documents.
One downside of the platform is not being able to see the potential refi rates until you request a personalized quote.
Pros
- Online application process
- Phone access to licensed loan officers
- Repeat customers won’t pay lender fees
Cons
- Must provide contact information to get a rate quote
- No public rates and fees page
Trustpilot score: 3.5 out of 5
9. Guaranteed Rate
People like Guaranteed Rate for its excellent customer service ratings. And, it has competitive interest rates.
The entire loan process occurs online. But, you can talk to a loan officer.
To qualify for the lowest rates, you may need to complete a few extra steps. For example, you may need owner’s title insurance. Other lenders might not require this extra coverage.
Since you can get a quote for free, compare their rate to other lenders. Then, you can see if the savings are worth using Guaranteed Rate.
Pros
- Online application process
- Phone and email customer support
- Multiple loan options
Cons
- Must apply to see rates
- Some customer service complaints
Trustpilot score: 2.4 out of 5
10. PNC
Maybe you have a high-value home. It might exceed the Fannie Mae and Freddie Mac loan-servicing limits. In most markets, that limit is $548,250.
PNC is one of the best companies to refinance jumbo mortgages.
This is because banks must self-insure jumbo mortgages. So, jumbo mortgages are more expensive to refinance. And, the underwriting standards are stricter because the bank can lose more money.
PNC offers fixed loan terms of 15 and 30 years. If you need it, the upper borrowing limit is $5 million.
While you will need to get a personalized quote to see your rates, the rates page and refinance calculator make it easy to estimate your loan fees.
And, PNC usually keeps your mortgage instead of selling it. This is one reason why PNC gets good grades for customer service.
Pros
- Many loan options
- Robust calculator tool
- Can apply online
Cons
- May need to visit a local branch
- Rates can vary by state
Trustpilot score: 2.1 out of 5
11. Ally Bank
Many people know Ally Bank for its rewards banking accounts that offer high interest rates and no monthly service fees.
The platform also offers competitive interest rates with fixed and adjustable rate conventional loans. You won’t have to pay lender fees which is a plus.
Most of Ally’s loans offer fixed interest rates with a 15-year or 30-year repayment term.
Adjustable rate terms are between 5 and 10 years.
You can submit an application in as little as 15 minutes to secure your rate.
In addition to the many loan options, Ally is one of the best online banks as they have an impressive checking account and savings account.
Pros
- Many repayment options
- No lender fees
- Quick online application
Cons
- No government-backed mortgages
- Not available in every state
Trustpilot score: 2.0 out of 5
12. SunTrust Bank
SunTrust Bank started way back in 1891. You can apply to refinance your mortgage with SunTrust by filling out the online application.
Or, you can stop in to one of over 1200 branches in the Southeastern United States. SunTrust does fixed and variable rate mortgages in a variety of terms.
You can choose from:
- Conventional loans
- FHA loans
- VA loans
Pros
- Conventional and federal loans
- Local branch access
- Can preview rates without prequalifying
Cons
- Must get a quote to calculate fees
- May need to speak with an agent to compare rates
Trustpilot score: 1.8 out of 5
13. Bank of America
Bank of America can offer competitive mortgage refinance rates for the biggest national banks. Consider this bank if you want the benefit of local branch access.
The mortgage options include:
- 30-year fixed rate
- 15-year fixed rate
- 5-year/6-month variable rate
While there are fewer loan options, the fixed rate mortgage options are similar to most refinance companies.
Pros
- Competitive rates
- Loyalty perks for Preferred Rewards members
- Local branch access
Cons
- Limited variable APR options
- Basic refinance calculator
Trustpilot score: 1.3 out of 5
14. US Bank
Another bank that tends to offer lower refinance rates and has brick-and-mortar locations is US Bank. Since they’re a national bank, it’s likely there’s a branch near you.
You can apply even if you don’t live near a branch. However, you won’t have the assistance of a local mortgage officer if you prefer in-person support.
Refinance options include:
- Fixed interest rate
- Variable interest rate
- FHA
- VA
- Jumbo
The bank offers a 20-year fixed-rate “Smart Refinance” that doesn’t have closing costs. Traditional loans are available too and it’s worth comparing rates and terms.
Pros
- Many loan options
- Local branch access
- May not have closing fees
Cons
- Local branches in approximately 30 states
- May need a US Bank checking account to get special discounts
Trustpilot score: 1.3 out of 5
15. USAA
Another popular online bank is USAA as they offer loans, insurance and online banking products.
In additon, they are a military-friendly group.
Your mortgage refinance options include:
- Conventional loans
- VA loans
Only existing USAA mortgages can qualify for a conventional refi loan from this bank. If you qualify, you will need to call to get a rate quote.
If you refinance through this platform, you might also get a quote for their homeowner’s insurance to protect your home.
Pros
- Conventional and VA refinance loans
- Offers serveral banking and insurance products
- Military-friendly
Cons
- Conventional loans are only for existing USAA mortgages
- May need to call to get a rate quote
- Low Trustpilot score
Trustpilot score: 1.3 out of 5
How to Refinance Your Mortgage
Refinancing your mortgage is similar to applying for your first mortgage. The one difference is that you already “own” the home you’re refinancing.
You can refinance the mortgage for any home or rental property you own.
You will need to pay an appraisal company to appraise your house. The appraisal helps the bank decide your current home value.
This value determines your maximum loan amount, as well as how much equity you have in your home. Equity helps you get a lower interest rate. Plus, it improves your approval odds during the underwriting process.
The refinancing process roughly takes one month to complete. This time frame is similar to applying for a first mortgage.
Pre-Qualify Before You Refinance
It’s a good idea to pre-qualify for a refinance mortgage rate. In fact, most lenders now require you to pre-qualify.
This saves you the time of applying for a loan you don’t qualify for, and it only takes a few minutes to do.
Online lenders let you pre-qualify on their own websites. This doesn’t affect your credit score. So, you can pre-qualify with multiple lenders penalty-free.
Compare Multiple Lenders
With most sites, it only takes three minutes to get a quote. Take 20 minutes and get a quote from multiple lenders.
Even though they all offer the same loan, expect different estimates.
You might even see different interest rate quotes.
Pay Attention to Loan-to-Value Ratio
Lenders use your appraisal to determine your loan-to-value ratio (LTV). To refinance, your LTV usually has to be less than 80%.
To consolidate other debt, it must be lower than 65% for most lenders.
Some call this hybrid loan a cash-out refinance loan. You can use your home equity to pay your high-interest debt.
Instead of paying 20% interest with your credit card, you might only pay 5% on the loan. If you use the loan to pay off your consumer debt, you can save money on interest charges.
Quickly Send All Documents
When you apply for a refinance, you need to mail or upload all documents as soon as possible. With most lenders, expect the application process to take 21 to 30 days.
Many lenders lock in your rate for 45 days to account for potential delays. If the lock period ends before you close, your new interest rate might increase.
Don’t Apply for New Credit While You Refinance
Until the refinance process closes, don’t apply for new credit. Lenders check your credit score at the start and end of the refinance process. If you apply for a new loan or credit card, you risk your approval odds.
Better yet, wait three months after you close to apply for new credit. This gives lenders time to see you make three on-time payments on your new loan. And, your credit score has extra time to rebound.
Build Your Credit Score Before You Apply
For the best interest rate, your credit score needs to be as high as possible.
There are two ways to build credit:
- Pay off high-interest debt
- Make on-time payments on each loan and credit card
Paying off debt also helps reduce your debt-to-income ratio.
Lenders want to know how much of a payment you can afford. After all, they lose money if you default on the loan. This measure also prevents a repeat of the 2008 mortgage crisis.
FAQs
Here are answers to a few of the most common questions about refinancing.
Your new interest rate is the daily rate for the day you apply. If rates decrease before you close, some lenders will give you the lower rate.
All lenders base their refinance rates on the 10-year U.S. Treasury term plus a spread. Although the changes are slight, mortgage rates change daily. Each lender can charge a different spread and closing fees.
For stability, lenders usually lock in your interest rate for 45 days. For most loans, this is ample time for the bank to process the paperwork.
When you get a mortgage refinance quote, you might see two different rates. The first and usually lower rate is the interest rate.
The higher rate (that you pay) is the APR. The APR is higher because it includes any fees and points. So, APR includes all mortgage fees plus the loan interest rate.
To lower your APR, pay as many closing costs upfront as you can afford. By making upfront payments, you also reduce your loan principal. So, you pay less in interest.
By law, lenders must show the APR during the application process. When you compare mortgage companies, look at the APR.
Also, look at the interest rate. But, the APR is the more realistic mortgage rate.
Besides closing fees, your credit score and loan length affect your APR. Higher loan amounts and lower credit scores can increase your mortgage rate.
The repayment term is how many years you have to repay your loan in full. Currently, most homeowners have a 30-year fixed rate mortgage.
This means you pay the same amount each month for 30 years.
When you refinance, you can choose a shorter repayment term.
For example, you might choose a 5-year or 10-year term. Your monthly payment might be higher than the current 30-year term.
But, you repay the loan sooner and you can save thousands of dollars in interest payments.
Most loans require a minimum credit score of 620. Some federal loans only require a 580 credit score.
Many lenders see if you pre-qualify to refinance. They check your credit score for free. And, these free quotes don’t count as a hard inquiry.
A higher credit score means you qualify for the best interest rates. Having the smallest loan balance and shortest repayment terms also help.
Not always. There are two reasons to refinance your mortgage. First, if you can get a notably lower interest rate. Second, if you need more time to repay your loan.
Always compare the closing costs to the potential savings. If you “lose” money refinancing, stick with your current loan.
Try not to refinance because you need more time. If so, you will pay more in interest and fees. Yes, this is better than foreclosing. But, you also need to consider downsizing to a cheaper home or using these tips to reduce your monthly spending
Summary
Online lenders tend to be the best mortgage refinance companies. They usually offer lower interest rates and charge fewer fees.
And, you can complete most of the refinance process online. Use this list to choose the best refinance company for you.
