Refinancing your mortgage is one step you can take to reduce your monthly spending. In fact, using a company to refinance your mortgage, you can get out of debt even faster. With interest rates on the rise, now can be a good time to refinance.
The sooner you refinance, the more money you can save. This is because as interest rates go up, your potential savings decrease.
If you time it well, refinancing can save you thousands of dollars in interest. Of course, this depends on how much lower your interest rate is. And, how short your new loan repayment term is.
You may decide to refinance your 30-year mortgage to a 15-year mortgage. With this, you can get a lower interest rate. Plus, you pay off your mortgage faster. And, you can use the extra cash to repay your high-interest debt.
In This Article
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. Usually, they are between 3% and 6% of your loan amount. These fees (closing costs) include the home appraiser and title change fees.
As you can see, these fees can erase any money you save by refinancing. So, make sure you get an accurate estimate right away.
Compare the refinance rates of several lenders. You can start with these lenders to pay the lowest closing costs possible. At the end of the list you’ll find information on how to refinance, and answers to common refinancing questions.
1. AmeriSave
When comparing mortgage refinance rates, get a quote from AmeriSave. After they provide a quote, you have four days to find a lower rate. If you do, AmeriSave matches the rate. Or, they give you $1,000 if you close with the other lender.
AmeriSave offers four different refinancing options:
- 15-year fixed
- 30-year fixed
- 7-year Adjustable Rate Mortgage
- 30-year FHA (Federal Housing Administration)
Your best rate can be with the 7-year ARM. With this loan, your first seven years have a fixed mortgage rate. After that, your rate floats and changes once a year.
So, only choose this option if you plan on paying off your loan in seven years. Otherwise, you might pay more in interest than with a standard fixed-rate loan.
AmeriSave has a Trustpilot score of 4.2/5
2. 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. But when you close, you must schedule an in-person meeting.
Rocket also supports 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: 3.8/5
3. Better.com
Better.com is a newer mortgage company with a goal to make home ownership simpler, faster, and more accessible for all Americans. Their website says that they don’t charge any lender fees or commission.
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 town homes and condominiums as well.
4. LoanDepot
One of the oldest online mortgage refinance companies is LoanDepot. It’s well-liked because its agents don’t work on commission.
You can talk with a loan agent to find your best refinancing option. And, LoanDepot has local branches in several states.
They have funded over $100 billion in loans and have over 1,700 lending officers, so they are experienced when it comes to mortgages.
Not to mention, they have a Trustpilot score of 3.6/5 which tells you that their actual customers are happy.
5. New American Funding
New American Funding claims its members save over $370 per month on average. See your potential savings by getting a free quote. You may appreciate New American Funding because they are family-owned.
They also partner with ConsumersAdvocate to provide reviews on more than 14,000 companies. Maybe you rely on these product reviews to avoid scams and only buy quality products.
To start the refi process, simply enter your remaining loan balance and current credit score. Currently, New York residents cannot refinance using New American Funding.
They’ve got a Trustpilot score of 4.4/5
6. Veterans United Home Loans
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.
7. USAA
Another popular online bank is USAA. First, they are a military-friendly group. Second, they also offer insurance products. It’s possible to have your mortgage and homeowners insurance with one bank.
When you refinance, your options range between a 10-year and 30-year fixed rate loan. If you decide to sell your house through USAA, you can also get a cash reward. The average person receives a $1,230 cash reward with their rewards program.
8. 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.
9. Ally Bank
Many people know Ally Bank for being one of the best online banks. It also offers some of the lower mortgage rates.
Most of Ally’s loans offer fixed interest rates. But, you can also get an adjustable rate mortgage with a 10-year fixed term.
On the Ally website, you can compare today’s best rates. And, you can use their refinance calculator to find the best loan.
10. 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 and more. They also have what’s called a Premier loan product for larger home purchases.
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.
How long are you going to refinance your mortgage for? What will you do with the extra money? Let us know on our social media accounts!
