Best Mortgage Refinance Lenders

Banks Editorial Team · May 26, 2018

Many homeowners choose to refinance their mortgage at one point or another during the life of the loan. Choosing from the best mortgage refinance lenders will allow you to get the refinance mortgage that is right for you from a top lender. Reasons for refinancing include getting better loan terms, moving from an adjustable-rate loan to a fixed-rate loan, or accessing the equity in the home. Currently, the best mortgage refinance lenders include Alliant Credit Union, Bank of America, Chase Bank, Citibank, Guaranteed Rate, Lenda, Loan Depot, PennyMac, PNC Bank, Rocket Mortgage, and TD Bank.

The reason that may resonate with everyone who is looking into refinancing is saving money in the process and the monthly payments of your loan.

Refinancing Overview

By refinancing their mortgage, a homeowner can replace their existing mortgage with a new mortgage, generally with the goal of having better terms on the loan, such as a lower interest rate. If the homeowner has equity in their home, they may also end up with a cash payout through the refinance process. There are many reasons why homeowners may choose to refinance their mortgage. These can include lowering their interest rate, switching to a fixed-term mortgage from an adjustable-rate mortgage, getting a cash payout from home equity, improving their credit score, or reducing their repayment term.

There are several types of mortgage refinancing. Conventional mortgages are harder to qualify for and may require a sizable down payment, but are backed by banks or private lenders. On the other hand, government-backed mortgages are easier to qualify for and allow a smaller down payment.

Mortgages are typically either fixed-rate or adjustable-rate. A fixed-rate mortgage has a predetermined interest rate for the period of the loan, which can be preferable for homeowners that plan to keep the home for the long-term. An adjustable-rate mortgage, on the other hand, gives a lower interest rate initially that can go up over time, so it’s preferable to homeowners planning to sell their home within few years. There are also conforming mortgages, backed by government-affiliated agencies such as Freddie Mac and Fannie Mae, which provide lower interest rates and down payments and are easier to qualify for. Finally, jumbo mortgages provide financing for very expensive properties but are very difficult to qualify for.

Comparing rates offered by different lenders is a very important step in the refinancing process.

Best Mortgage Refinance Lenders

Below, we’ve listed some mortgage refinance lenders recognized by most popular online rankings, including what makes them a stand-out lender.

  • Alliant Credit Union
    • Refinance details: Down payments as low as 5%, mortgage insurance not required, fixed-rate as low as 3.87%, adjustable rate as low as 3.75%.
    • Best of credit union lenders.Bank of America
      • Refinance details: fixed-rate, adjustable-rate, government-back, and cash out refinance options. Rates as low as 3.75%.
      • Best traditional lender and best online experience.
  • Chase Mortgage
    • Refinance details: fixed-rate, adjustable-rate, government-backed FHA/VA, HARP (low-income) refinance options.
    • Best traditional lender.
  • Citi Mortgage
    • Refinance details: fixed-rate, adjustable-rate, jumbo, FHA, VA loan options.
    • Best term options
  • Guaranteed Rate
    • Refinance details: online-only lender. Fixed-rate, adjustable-rate, FHA, VA, and jumbo loan options. Rates as low as 3.875%.
    • Best customer experience, best 15-year fixed-rate option, and best for VA loan refinance
  • Lenda
    • Refinance details: online-only lender. Only fixed-rate loans available.
    • Best online experience
  • Loan Depot
    • Refinance details: fixed-rate, adjustable-rate, VA, FHA, jumbo, HARP (low-income) loan options.
    • Best term options
  • Penny Mac
    • Refinance details: fixed-rate, adjustable-rate, FHA, VA, USDA, jumbo, and flex-term loan options.
    • Best for a USDA loan
  • PNC Bank
    • Refinance details: fixed-rate, adjustable-rate, home equity refinance, jumbo, FHA, VA loan options. Terms up to 30 years. Loans up to $5 million.
    • Best for a jumbo loan
  • Rocket Mortgage
    • Refinance details: online-only lender. Fixed-rate, adjustable-rate, jumbo, FHA, VA, USDA loan options.
    • Best online experience
  • TD Bank
    • Refinance details: Fixed-rate, adjustable-rate, HARP (low income) loan options.
    • Best adjustable-rate mortgage

Mortgage refinancing allows a borrower to replace their existing mortgage with a new mortgage with more desirable terms. The best mortgage refinance lenders include Alliant Credit Union, Bank of America, Chase Bank, Citibank, Guaranteed Rate, Lenda, Loan Depot, PennyMac, PNC Bank, Rocket Mortgage, and TD Bank.

 

 

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