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The information for the following product(s) has been collected independently by Business Insider: Carrington Mortgage Services Refinance. The details for these products have not been reviewed or provided by the issuer.
You might have different priorities when choosing a refinance lender than when you first got your mortgage. For example, a fast closing probably won't matter to you as much as getting the lowest rate possible.
As you compare mortgage refinance lenders, be sure to consider your overall costs, including closing costs, in addition to your rate.
Best Mortgage Refinance Lenders
- Rocket Mortgage: Best overall
- Third Federal Savings and Loan Mortgage: Best for low costs
- Pentagon Federal Credit Union Mortgage: Best for veterans
- Fairway Independent Mortgage Corporation: Best for digital closing
- U.S. Bank: Best for existing customers
- Carrington Mortgage Services: Best for low credit scores
When picking the best mortgage lenders for refinancing, Business Insider looked for lenders that have low average rates and fees, thrive in customer satisfaction, and have features that help them stand out — such as offering loans with low minimum credit scores or digital closing options.
Compare the Top Mortgage Refinance Lenders
These are the best mortgage refinance lenders as chosen by Business Insider editors in 2024.
Best Overall: Rocket Mortgage
620
Conventional, cash-out, FHA, VA refinancing
- Refinance into several types of mortgages
- Top lender for customer satisfaction from J.D. Power for 11 straight years, and No. 2 in 2021
- Fast, easy online experience
- Can't refinance into a USDA mortgage
- Doesn't accept alternative credit data
Rocket Mortgage, formerly known as Quicken Loans, is a strong lender in general and our "best overall" pick for the best mortgage refinance lenders. It's a great option if you're comfortable applying online and have a good credit score.
Rocket Mortgage- Available in all 50 US states and Washington, DC
- Doesn't accept alternative data, like proof of paying bills on time, in addition to a credit score
- Minimum credit score displayed is for conforming mortgages
Rocket Mortgage is our top choice thanks to its easy-to-use online application and its strong track record in providing great customer service. It's ranked as the No. 2 lender for customer satisfaction in J.D. Power's 2023 Mortgage Origination Satisfaction Study. Refinancers will like the lender's "YOURgage" loans, which let you choose any term length between eight and 29 years.
What to look out for: Its loan options are relatively limited, and it doesn't have any in-person branches. Rocket's rates and fees are around average compared to other lenders, according to Home Mortgage Disclosure Act data.
Best for Low Costs: Third Federal Savings and Loan
N/A
3%
Conforming, Smart Rate Adjustable Mortgage, jumbo, bridge loan, HELOC, home equity loan
- Low Cost Mortgages come with only $395 in closing costs
- Down payment assistance available
- Services all of its loans
- Low average rates
- Only available in 22 states and Washington, DC
- Only has physical branches in Ohio and Florida
- No government-backed mortgages
Third Federal Savings and Loan is a really unique mortgage lender that offers an impressive number of perks compared to other lenders we've reviewed.
Third Federal Savings and Loan- Available in California, Colorado, Connecticut, Florida, Georgia, Illinois, Indiana, Kentucky, Maryland, Massachusetts, Missouri, New Hampshire, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Virginia, Washington, and Washington, DC
- Third Federal Savings and Loan doesn’t set a minimum credit score for its mortgages. In general, borrowers should aim to have a score of at least 620 to be considered for a conventional mortgage.
- Minimum down payment displayed is for conforming mortgages
Third Federal Savings and Loan is an extremely affordable mortgage lender if you're looking for a low rate or low fees. Based on our review of HMDA data, Third Federal's average mortgage rates are significantly lower than many other lenders we've reviewed.
This lender also offers a product called a Low Cost Mortgage, which comes with only $395 in closing costs. If you don't want to pay a lot of cash out of pocket to refinance, this could be a good option for you. However, you'll have a slightly higher rate to compensate for the costs the lender covers.
What to look out for: Third Federal mortgages are only available in California, Colorado, Connecticut, Florida, Georgia, Illinois, Indiana, Kentucky, Maryland, Massachusetts, Missouri, New Hampshire, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Virginia, Washington, and Washington, D.C.
Best for Veterans: Pentagon Federal Credit Union
650
3%
Conforming, jumbo, FHA, VA, HELOC
- Average rates and fees are relatively low
- Offers fully underwritten preapproval
- Offers a 60-day rate lock
- No USDA, new construction, or reverse home loans
- Requires 620 credit score to get an FHA loan
- Need to be a member to get a home loan
- Offers mortgages in all 50 US states, Washington, DC, Puerto Rico, Guam, and Okinawa
- To become a member, open a PenFed savings account with a $5 minimum deposit
- Does not accept non-traditional credit data, such as utility bills, if you have a low/no credit score
- Minimum credit score and down payment listed are for conforming mortgages. VA borrowers can have scores of 620
A lot of lenders offer VA loans, including many of the lenders on this list. But for refinancing, we like PenFed, which has low average fees, according to HMDA data. Plus, if you're getting a VA streamline refinance (also known as an interest rate reduction refinance loan), PenFed will cover your closing costs (including the VA funding fee).
What to look out for: You'll need to become a member to get a mortgage with PenFed. Fortunately, becoming a member is fairly easy. You'll just need to fill out a form and open a savings account with a $5 minimum deposit.
Best for Digital Closing: Fairway Independent Mortgage Corporation
620
Conventional, cash-out, FHA, VA refinancing
- Refinance into a variety of mortgage types
- Accepts alternative forms of credit
- Easy-to-navigate website
- Option to close on the new mortgage online instead of in person
- You can't refinance into a USDA loan
- Rates aren't posted online
Fairway Independent Mortgage is one of Personal Finance Insider's best online mortgage lenders. It's an overall affordable lender with a variety of mortgage options for borrowers to choose from.
Fairway Independent Mortgage Corporation- Offers mortgages in all 50 US states and Washington, DC
- Branches in every US state except Alaska and West Virginia
- Apply with alternative credit data (such as proof that you pay bills on time) if you have no credit score
- Minimum credit score displayed is for conventional refinances
Fairway Independent Mortgage Corporation is a good refinance lender overall, and offers hybrid and remote closing options for a more streamlined closing experience. It also earned the top spot in customer satisfaction in J.D. Power's 2023 origination study.
Fairway Independent lets borrowers have a hybrid or fully remote closing. With a hybrid closing, you can sign most of your documents digitally, and have a quicker in-person closing appointment. In some states, the entire process can be completed digitally.
What to look out for: Our review of the latest HMDA data found that Fairway's rates and fees are around average compared to other lenders.
Fairway Independent Mortgage Corporation Review
Best for Existing Customers: U.S. Bank
620
Conventional, cash-out, FHA, VA refinancing
- Refinances a variety of mortgage types
- Current customers receive up to $1,000 toward closing costs
- You can't refinance into a USDA mortgage
- Doesn't accept alternative forms of credit
US Bank is a good choice for those who already have mortgages or accounts with this bank. Its existing customer discount on its mortgages is better than similar offers from other lenders.
U.S. Bank Mortgage- Offers home loans in all 50 US states and Washington, DC
- Has branches in 26 US states
- Does not accept alternative credit sources in lieu of a credit score
- Minimum credit score displayed is for conventional refinancing
U.S. Bank is a good choice for those who already have mortgages or accounts with this bank. Its existing customer discount on its mortgages is better than similar offers from other lenders.
U.S. Bank's average fees are on the low end, according to HMDA data.
If you already have a mortgage or account with U.S. Bank, you may be able to get up to $1,000 off your closing costs if you refinance through this lender.
What to look out for: U.S. Bank ranked average in J.D. Power's 2023 satisfaction study.
Best for Low Credit Scores: Carrington Mortgage Services
620
Conventional, cash-out, FHA, VA, USDA, Carrington Flexible Advantage
- Variety of refinance options, including the Carrington Flexible Advantage Refinance
- Has flexible credit guidelines on some of its mortgages
- Has mortgages that allow scores as low as 500
- Can't see customized rates online
Carrington is an affordable option for those with rocky credit histories and credit scores as low as 500.
Carrington Mortgage Services- Offers mortgages in all US states except Massachusetts and North Dakota
Carrington Mortgage Services is an affordable option for those with rocky credit histories and credit scores as low as 500.
Carrington offers several mortgages that have flexible credit guidelines, including its Carrington Flexible Advantage Refinance mortgage, which allows credit scores as low as 550 and recent negative credit events like bankruptcy.
What to look out for: Carrington doesn't lend in Massachusetts or North Dakota. According to HMDA data, this lender's rates and fees are higher than average.
Carrington has an NR, or "no rating" from the BBB because the lender is responding to previously closed complaints. Additionally, in November 2022, the Consumer Financial Protection Bureau ordered Carrington to pay $5.25 million in fines for supposedly violating borrowers' CARES Act rights. The CFPB claims that the lender misled borrowers seeking CARES Act forbearance and denied them key protections provided by the pandemic-era law.
Carrington Mortgage Services Review
Why There's No Single 'Best' Refinance Company
The lenders on this list are affordable and have offerings that should meet most borrowers' needs, but ultimately it comes down to what rate you're offered and whether a given lender suits your needs.
Your Goals Matter
There are a few different reasons to refinance your mortgage. Think about what you want to achieve with your refinance, and look for lenders that can meet those needs.
Are you looking to do a cash-out refinance? Do you want to change the type of mortgage you have? Is getting the lowest rate possible more important than having a good customer service experience? Make sure the lenders you're considering offer the type of refinance and level of service you want.
Refinance Rates Vary By Lender and Borrower
Mortgage rates can vary a lot between lenders, and your own financial situation will have a big impact on the range of rates available to you. You might be able to get a low rate with a specific lender, while another borrower can get a better rate elsewhere.
The best way to know what rate you'll get with a lender is to apply for a mortgage. Experts typically recommend applying with at least three different lenders to be able to compare rates accurately.
Fees Impact Total Cost
Though borrowers often start the refinancing process with the goal of getting the lowest rate possible, it's important to consider your overall costs. Some lenders offer low rates but charge a lot in fees or add discount points to lower the rate (which you'll pay for at closing).
Key Questions to Ask Yourself Before You Start Shopping
Why Am I Refinancing?
Refinancing can enable you to tap into your home's equity, lower your rate, get rid of mortgage insurance, extend or shorten your term, or change the type of mortgage you have.
How's My Credit?
You'll need to meet the lender's credit requirements to qualify for a mortgage refinance, and having a great credit score can help you snag a better rate.
The exception to this is if you're getting a streamline refinance, which is available on government-backed mortgages. Some streamline transactions don't require the borrower to show a credit score.
Is Refinancing Worth It Right Now?
You'll need to do some math to figure out if it makes sense financially to refinance. Because refinancing isn't free, you'll want to weigh the costs against the benefits.
For example, if you're refinancing to lower your mortgage payment, calculate how long it will take you to recoup your closing costs. If you spent $2,000 to refinance and lowered your monthly payment by $200, it would take 10 months of payments to break even.
An online refinance calculator can help you figure out if refinancing is worth it.
How to Find the Best Mortgage Refinance Company for You
Start With Where You Bank
You don't have to get a mortgage with your current lender or bank, but you might find that it can offer you certain benefits or discounts as a returning customer.
Big Banks
Big banks are well-established financial institutions that offer many other services besides mortgage lending. Although they sometimes have a reputation for not offering as much personalized support as smaller lenders, many of the big bank lenders we've reviewed rank high in customer satisfaction.
Online Lenders
Nonbank mortgage lenders that operate mostly online are a popular choice with tech-savvy borrowers. These lenders may offer lower rates since they don't have the same operational costs as lenders with physical footprints, but this isn't always the case.
Local Lenders
Smaller, local lenders are often able to offer better customer service than lenders that are working with a large number of borrowers. But you should compare their rates with some larger lenders to make sure they're competitive.
Mortgage Brokers
A mortgage broker will do all the legwork of getting quotes from different mortgage lenders for you. If you want to be able to easily compare many different loan options, you might prefer working with a broker.
Best Mortgage Refinance Lenders FAQs
The best company for refinancing depends on your needs and goals. If a good customer service experience is important to you, a lender like Rocket Mortgage might be a good pick. If you have a lower credit score, you might like Carrington Mortgage Services.
You might prefer refinancing with your current lender if you like the customer service it offers and you value convenience. But shopping around and comparing rates for the type of loan you want (like a 30-year mortgage refinance) gives you a chance to see what types of deals are available to you.
You can find the best refinance rates by getting quotes from a few different lenders and comparing the rates they offer you. If the rates you're being offered are relatively high, you might need to work on your credit score to get a better rate.
There's no single lender that offers the best mortgage rates, since rates change every day and your rate will be based on your individual financial profile. Keep an eye on current mortgage refinance rates to see where rates are at right now, and compare that to the rates you're offered as you shop around for a lender.
Choosing a bank or online lender for your refinance depends on your needs and goals. If you prefer a quick application process that you can complete from the comfort of your home, you might like an online lender. But working with a bank that has physical branches can have benefits too, particularly if you want to sit down face-to-face to discuss your options.
Lenders typically look for at least a 620 credit score to refinance into a conventional loan, and a 580 score to refinance into an FHA loan. You'll also likely need a certain amount of equity in your home — possibly as little as 5%, or as much as 20%.
To choose the right refinance lender for you, consider the type of loan you want and what features are important to you (such as an online application or great customer service), then narrow down your search to a handful of lenders so you can get approved with each of them to see who can offer you the best deal in terms of both rate and fees.
Why You Should Trust Us: Experts' Advice on Choosing a Mortgage Refinance Lender
To help you learn more about refinancing and lenders, four experts weighed in:
- Anthony Park, author of "How to Buy Your Perfect First Home"
- Lauryn Williams, certified financial planner, founder of Worth Winning Financial Planning
- Julie Aragon, mortgage broker, founder of Aragon Lending Team
- Molly Grace, mortgage reporter at Business Insider
We consulted mortgage and financial experts to inform these picks and provide their insights about mortgage refinance lenders. Here's what they had to say about mortgage refinancing. (Some text may be lightly edited for clarity.)
How can someone know whether it's a good time to refinance?
Julie Aragon, Aragon Lending Team:
"The monthly savings and the cost for the refinance. When you have those two things, you can determine the break-even point. Also, how long they intend to stay in the house. If they know they're going to sell next year, it probably doesn't make sense to refinance."
Lauryn Williams, CFP:
"A lot of times people don't realize refinancing comes with some additional costs. There's those closing costs, title costs, et cetera, that are tied into the overall fees. Simply getting a lower interest rate doesn't mean that you're saving money, is the biggest factor that a lot of people are not aware of."
What factors should someone take into consideration when choosing a mortgage refinance lender?
Anthony Park, author:
"I feel like with a refinance, you're going based on numbers a lot more than on your original mortgage. Probably because the mortgage feels like more of a weighty transaction, whereas with refinancing, you're kind of an old hand at it at this point. I think the numbers matter a lot more for a refinance."
Molly Grace, Business Insider
"You don't have the same time crunch during a refinance that you do when you're purchasing, so take your time to really evaluate the offers you're shown and don't rush into anything. Lenders are pros at making refinancing sound really attractive — even if it's not necessarily the best long-term financial move for you. Remember that their job is to sell you something, and your job is to make sure you're making the best decisions for your finances."
When is it a good idea to get a cash-out refinance?
Julie Aragon, Aragon Lending Team:
"Investing the money into the home I think is always a good idea, as long as the math makes sense. Also paying off high-interest credit card debt. We have some clients, when we look at all of their debts, some are at 19% or 20%. By paying off all this crap, they'll save $1,500 or $2,000 a month."
Lauryn Williams, CFP:
"I think it's a tough situation, because sometimes with cash-out refi is, you're thinking of things like credit card debt. This is the biggest one I hear from clients: I can get rid of this 23% interest that I have on my credit card debt, and I can put it in my 2% mortgage. Well, you just took something that was not tied to any collateral. They can't take your home away if you don't pay your credit card debt. So something that previously couldn't result in my home being in a way now can add to the stress of my home being taken away should I not be able to pay my mortgage."
Methodology: How Did We Choose the Best Mortgage Refinance Lenders?
To choose the top mortgage refinance lenders of November 2024, we looked at four main factors:
- Customer satisfaction. Lenders that prioritize customer satisfaction can help ensure you have a smooth refinancing experience. If the mortgage lender appeared in the J.D. Power 2023 Mortgage Origination Satisfaction Study, we looked at its ranking. We also looked at online customer reviews to get a sense of the typical borrower experience with each lender.
- Ethics. Almost all of our top picks received an A+ from the Better Business Bureau, which measures companies' trustworthiness. We also researched and considered any scandals in the past three years.
- Loan types. Does a lender offer several types of loan refinances to suit customers' needs, including conventional loans, government-backed loans, and cash-out refinances?
- Affordability. Homeowners are typically looking to save money with a refinance, so we evaluated average rates and fees for each lender. We also checked whether the lenders offer streamline refinances for borrowers refinancing from a government-backed mortgage into the same type of mortgage, which can be more affordable for borrowers with less-than-perfect financial profiles. Finally, we looked at credit requirements and whether they have any flexible credit guidelines. This could include allowing borrowers to have recent negative events on their credit reports, or accepting non-traditional credit, like utility bills and rent payments, in lieu of a traditional credit score.
See our full ratings methodology for mortgage lenders »
