With mortgage rates still historically high, refinancing activity has cooled in recent years — though it’s still higher than the dark days of the pandemic.
Refinancing your mortgage can help you get a better rate or term, pay off your loan faster or swap an adjustable-rate mortgage for a fixed-rate loan. You can even refinance to tap your home equity and convert it into cash.
CNBC Select has chosen the best lenders for refinancing based on rates, availability and other factors (See our methodology for more on how we made our selections.)
Best mortgage refinance lenders
Best for low rates: Better
Better.com Mortgage Refinance
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Mortgage types
Conventional, FHA, VA, HomeReady, HomeOne, jumbo, refinancing, HELOC
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Terms
15 to 30 years for fixed-rate loans
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Credit score requirement
620 for conventional, 580 for FHA
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Minimum down payment
3% for conventional, 3.5% for FHA, 0% for VA loans
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Availability
Better offers refinancing in all 50 U.S. states and Washington, D.C.
Pros
- Lower rates than many competitors
- Preapproval in as little as three minutes
Cons
- Doesn’t offer USDA loans
- No mobile app
- No branch locations
Who’s this for: With lower-than-average rates and no lender fees, Better is a smart bet for budget-minded refinancers.
Standout benefits: If you decide to refinance your Better mortgage within three years of closing, you can get up to $3,500 in lender-paid credits.
Best for speedy closing: Rocket Mortgage
Rocket Mortgage Refinance
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Mortgage types
Conventional, FHA, VA, HomeReady, Home Possible, Rocket ONE+, jumbo, refinancing, VA Interest Rate Reduction Refinance Loan (IRRRL), home equity loan
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Terms
8 to 29 years for fixed-rate term
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Credit score requirement
580 for cash-out, rate-and-term, FHA or VA IRRRL
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Home equity requirement
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Availability
Rocket Mortgage offers refinancing in all 50 U.S. states and Washington, D.C.
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Pros
- Can refinance second home or investment property
- Prequalification available in minutes
- Allows borrowers to cash out 100% of their home’s equity
Cons
- Doesn’t offer USDA loans, HELOCs, construction loans
- No physical locations
- Higher-than-average origination fees
Who’s this for? Rocket Mortgage‘s average closing time for refinancing is 21 days, nearly half the national average. Plus, through the Overnight Underwrite process, borrowers can get verified approval in two hours.
Standout benefits: Rocket funds cash-out refinancing for qualified borrowers at 100% equity, compared to most competitors’ 80% to 90% cap.
Best for online closings: LoanDepot
LoanDepot
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Mortgage types
Conventional, FHA, USDA, VA, jumbo, refinancing, HELOC
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Terms
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Credit score requirement
620 for conventional, 500 for FHA, 580 for VA loans
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Minimum down payment
3% for conventional, 3.5% for FHA, 0% for VA and USDA
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Availability
LoanDepot offers refinancing in all 50 U.S. states and Washington, D.C.
Pros
- $1,000 on-time close guarantee
- Existing LoanDepot borrowers can refinance with no lender fees
- More than 200 branches nationwide
Cons
- Rates and fees not listed online
- Doesn’t offer USDA loans
- 5% down required on conforming mortgages
Who’s this for: LoanDepot is one of few lenders with fully remote closings. In some cases, your loan officer may even waive the home appraisal.
Standout benefits: You can refinance your LoanDepot purchase mortgage without paying lender fees.
Best for FHA loans: Movement Mortgage
Movement Mortgage
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Mortgage types
Conventional, FHA, Movement Boost 0% FHA, VA, USDA, jumbo, condo, construction, renovation, reverse mortgages, refinancing
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Term
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Minimum credit score
620 for conventional, 500 for FHA, 580 for VA loans, 600 for Movement Boost
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Minimum down payment
3% for conventional and HomeReady, 3.5% for FHA, 0% for VA and USDA loans
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Availability
Movement Mortgage offers refinancing in all 50 U.S. states and Washington, D.C. (Movement Boost not available in New York)
Pros
- Nationwide availability
- Seven-day loan processing
- Movement Boost covers down payment for FHA mortgage
Cons
- Not transparent about interest rates online
- Movement Boost not available in New York
Who’s this for: Movement Mortgage‘s Movement Boost program helps borrowers with a 600 credit score and 56.99% DTI with down payments and closing costs on FHA mortgages.
Standout benefits: Movement says its proprietary underwriting process allows it to process over 75% of loans in seven business days or less.
Best credit union: PenFed Credit Union
PenFed Credit Union Mortgage Refinance
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Mortgage types
Rate-and-term refinance (for conventional, FHA and VA refinances), VA Interest Rate Reduction Loan (IRRRL), cash-out refinance, home equity line of credit (HELOC)
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Credit score requirement
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Home equity requirement
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Availability
PenFed offers refinancing in all 50 U.S. states and Washington, D.C.
Pros
- Covers cost of VA funding fees and other costs
- Jumbo loan refinancing up to $3 million
- Available in all 50 states
Cons
- No USDA loans
- Doesn’t offer adjustable-rate terms
Who’s this for: Like many credit unions, PenFed has lower rates than many traditional banks. To join, you only need to open a savings account with an initial deposit of just $5.
Standout benefits: PenFed doesn’t charge closing costs on Interest Rate Reduction Refinance Loans (IRRRL) and has a closing credit worth up to $1,500 for other refinancing.
Best digital experience: Magnolia Bank
Magnolia Bank Mortgages
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Mortgage types
Conventional, refinance, VA, FHA, USDA, reverse, construction
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Terms
Fixed and adjustable rate
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Credit score requirement
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Minimum down payment
0% for VA loan, 3.5% for FHA
Pros
- Available in all 50 states
- Specializes in home loans for veterans
- Faster-than-average closing rate
Cons
- Only has locations in Kentucky
- No home equity loans or home equity lines of credit
Who’s this for: Magnolia Bank‘s online calculators show how much you’d save in interest and overall payments by refinancing your conventional or VA loan.
Standout benefits: While most lenders require a 620, Magnolia considers borrowers with scores as low as 580 to refinance a conventional mortgage.
Best for availability: PNC Bank
PNC Bank Mortgage Refinance
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Mortgage type
Conventional, FHA, USDA, VA, HomeReady, Home Possible, jumbo, refinancing, HELOC
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Terms
10 to 30 years for fixed-rate mortgages, 7 and 10 years for adjustable
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Credit score requirement
Pros
- Refinance available for primary and secondary homes, and investment properties
- Offers a wide variety of loans to suit an array of customer needs
- Offers refinancing for VA and FHA loans
- Available in all 50 states
- Online and in-person service available
Cons
- Doesn’t offer home renovation loans
Who’s this for: PNC Bank offers refinancing nationwide — borrowers can apply online or at one of 2,200 branches in 28 states.
Standout benefits: PNC customers with $500,000 or more in deposits or investments may qualify for a discount on rates or fees.
Types of mortgage refinancing
Refinancing your mortgage replaces your existing loan with a new one, but there are many different types of refinancing.
Rate-and-term refinance: The most common kind of refinancing, this option allows you to change your loan’s interest rate and/or term length.
Cash-out refinance: You can use the value of your home to get a cash loan for more than your existing mortgage and take a cash payout at closing.
Cash-in refinance: Homeowners make a lump-sum payment at closing to increase home equity and qualify for refinancing with better rates and terms.
Streamline refinance: Borrowers with an FHA, USDA or VA loan can refinance with less documentation and underwriting. (Sometimes referred to as an Interest Rate Reduction Refinance Loan or IRRRL.)
No-closing cost refinance: With this option, closing costs are rolled into the new mortgage or the borrower pays a higher interest rate.
Short refinance: The lender refinances your mortgage for less than you owe. Typically used to avoid foreclosure
Mortgage refinancing requirements
Requirements vary by lender, but there are general requirements for different types of refinancing.
| Type of mortgage | Minimum credit score | Maximum DTI ratio |
|---|---|---|
| Conventional (rate-and-term or cash-out) | 620 | 50% |
| FHA loan | 580 | 45% |
| VA loan | 620 | 41-50% |
| USDA loan | 640 | 41-46% |
| Jumbo loan | 700 | 45% |
Pros and cons of mortgage refinancing
Pros
- Lower rate and monthly payments
- Opportunity to access cash from home equity
- Can add or remove a co-signer
- Can switch between adjustable-rate and fixed-rate mortgage
Cons
- Your credit score could take a temporary hit
- Your loan term could be longer
- Additional closing costs
- With cash-out refinancing, monthly payments can be significantly larger
Mortgage refinancing FAQs
How often can you refinance your mortgage?
There is no limit on how often you can refinance a home loan. But each time you do, you’ll have to pay closing costs and your credit score will take a hit.
Do I have to refinance with my current lender?
You can refinance with a new lender or your existing mortgage company. Staying with the same lender may make things easier and save you on fees, but a different company may have a better rate or terms.
How much does refinancing a mortgage cost?
Closing costs on a refinance mortgage are typically between 2% and 5% of the total loan amount. These costs include the application and origination fees, as well as the cost of a credit report, underwriting the loan, appraising your home and the title search and insurance. A no-closing-cost refinance would allow you to roll closing costs into your monthly payments or exchange them for a higher interest rate.
Do I have to get a home appraisal to refinance?
An appraisal is commonly required when refinancing, but it may be waived by the underwriter or if you have a government-backed streamlined refinance.
Does refinancing hurt your credit?
Potential lenders will run a hard inquiry on your credit during the application process, which can temporarily lower your credit score by a few points.
Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every mortgage review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of home loan products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
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Our methodology
CNBC Select analyzed dozens of refinance mortgages offered by banks, credit unions, online lenders and others. We focused on the following features:
Refinancing offered: We favored lenders with more refinance options, including Streamline FHA, VA and USDA refinancing, reverse mortgages and cash-in refinancing.
Credit score: Most lenders require a 620 FICO score to refinance a mortgage. We noted if a lender had options for borrowers with lower credit scores.
Closing times: We gave more weight to lenders with shorter-than-average closing times or guaranteed an on-time closing.
Fees: Refinance mortgages include a variety of charges, including origination, application and underwriting fees, as well as charges for appraisals, title insurance, attorneys and other closing costs. When possible, we noted if a lender had lower fees, discounts or waived certain fees.
Application process: We considered whether lenders offered an online preapproval and application process and if there were physical branches for an in-person experience.
Customer service: We gave more weight to lenders that scored highly on J.D. Power’s mortgage origination and servicing surveys. We noted if they had robust customer service phone hours and a website with an online chat feature and educational resources.
We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.
Based on that criteria our picks for the best lenders for mortgage refinancing are:
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.