Best Cash-Out Refinance Lenders of December 2024
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A cash-out refinance could be right for you if you need money for major home repairs or renovations, or if you want to consolidate high-interest debt. To help you narrow down your choices, NerdWallet has picked some of the best cash-out refinance lenders in several categories so you can quickly find lenders that fit your priorities.
- 50+ mortgage lenders reviewed and rated by our team of experts.
- 40+ years of combined experience covering mortgages and financial topics.
- Objective, comprehensive star rating system assessing 120+ categories and 5,000+ data points.
- Governed by NerdWallet's strict guidelines for editorial integrity.
- 50+ mortgage lenders reviewed and rated by our team of experts.
- 40+ years of combined experience covering mortgages and financial topics.
- Objective, comprehensive star rating system assessing 120+ categories and 5,000+ data points.
- Governed by NerdWallet's strict guidelines for editorial integrity.
Best Cash-Out Refinance Lenders of December 2024
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Lender ▾ ▾ | NerdWallet Rating ▾ ▾ | Min. credit score ▾ ▾ | National / regional ▾ ▾ | Learn more |
|---|---|---|---|---|
 Rocket Mortgage, LLC: NMLS#3030 Top 3 most visited 🏆 Learn more at Rocket Mortgage, LLC | 580 | National | Top 3 most visited 🏆 Learn more at Rocket Mortgage, LLC | |
 Navy Federal: NMLS#399807 LEARN MORE on NerdWallet | N/A | National | LEARN MORE on NerdWallet | |
 PenFed: NMLS#401822 LEARN MORE on NerdWallet | 620 | National | LEARN MORE on NerdWallet | |
 U.S. Bank: NMLS#402761 LEARN MORE on NerdWallet | N/A | National | LEARN MORE on NerdWallet | |
 PNC Bank: NMLS#446303 LEARN MORE on NerdWallet | 620 | National | LEARN MORE on NerdWallet |
Rocket Mortgage, LLC: NMLS#3030
580
National
- Reported average time to close is 15 days faster than industry average.
- High volume of FHA and VA loans.
- Borrowers can apply via mobile app.
- Average origination fees are on the higher end, according to the latest federal data.
- Physical branches are only available in Detroit, Cleveland, and Phoenix.
Navy Federal: NMLS#399807
N/A
National
- Offers flexible VA-like loan options for those who have exhausted their VA loan benefit.
- 24/7 customer service supports borrowers stationed overseas.
- Borrowers must join the credit union before applying for a mortgage.
- Does not offer FHA loans.
- We sometimes waited longer than 10 minutes before connecting with a customer service representative.
PenFed: NMLS#401822
620
National
- Offers fully-underwritten preapproval with the option of a 60-day rate lock.
- Average mortgage rates are low compared with other lenders, according to the latest data.
- Originates significantly more VA loans than the average lender.
- Getting customized mortgage rates requires providing contact information.
U.S. Bank: NMLS#402761
N/A
National
- Wide variety of mortgage types.
- Convenient digital tools to shop for rates and apply online.
- Online rate tool doesn’t customize by credit score.
PNC Bank: NMLS#446303
National
620
- Customizable mortgage rates are posted online.
- Offers FHA and VA cash-out refinances.
- Average mortgage rates are on the high side, according to the latest federal data.
- In-person service is not available in every state.
- Easy to personalize a quote and apply online.
- Average interest rates are on the low side.
- Origination fees are on the higher end, according to the latest federal data.
- Online chat is available only in the logged-in experience.
loanDepot: NMLS#174457
520
National
- Has branches across the country for customers who prefer face-to-face service.
- Receives high marks for customer satisfaction, according to J.D. Power and Zillow.
- Mortgage interest rates tend to be on the lower end, according to the latest federal data.
- Mortgage rates aren't available online; you'll need to contact a loan officer.
- Doesn't offer home equity loans or lines of credit.
Network Capital: NMLS#11712
540
Regional
- Reported average time to close is 20 days, far below the industry average.
- Products like non-QM loans and ITIN loans make borrowing more accessible.
- The lender’s website offers limited loan details.
- Very low average interest rates compared to other lenders, according to the latest federal data.
- Closing cost credits and interest rate discounts available.
- Highly rated mobile app.
- Preapproval and application require a phone call to complete.
- Must contact the lender for customized rate quote.
Carrington: NMLS#2600
550
National
- Considers borrowers with bad credit, foreclosure or bankruptcy.
- Accepts self-employed borrowers.
- Mortgage origination fees are on the low side, according to the latest federal data.
- Average interest rates are on the high side, according to the latest federal data.
- Doesn’t post interest rates online.
- No online chat for customer service.
- Good variety of loan types and products.
- Mobile-friendly application process.
- Offers low rates compared with other lenders, according to the latest federal data.
- Doesn’t originate mortgages in the state of New York.
- Average origination fees are on the high side, according to the latest federal data.
- Doesn’t offer home equity loans.
How does a cash-out refinance work?
With a cash-out refinance, you're getting a new loan that's for more than you owe on your current mortgage. The difference between your new loan amount and what's owed is where you get the "cash out." The amount of cash you can get depends upon your home equity — how much your home is worth compared to how much you owe.
Say your home is valued at $200,000 and your mortgage balance is $100,000, giving you $100,000 of equity in your home.
Most lenders will require you to maintain at least 20% equity in your home. You could refinance your $100,000 loan balance for $150,000 and receive $50,000 in cash at closing. Your remaining equity in the home would be 25% (that’s $50,000 in equity divided by the home value of $200,000).
You'll need an appraisal to determine your home's current value. If your home has increased in value since you bought it, you may have more equity than what you've accrued from paying down your principal.
When getting a cash-out refinance, you can use the money however you wish. However, since the loan is secured by your house, you risk foreclosure if you can’t pay it back. Funds from a cash-out refinance can be helpful to pay for:
Large-scale home improvements or renovations
Education expenses
Nerdy Tip
What if you’ve gotten a cash-out refinance before, but want to do it again? Most loans have a waiting, or “seasoning,” requirement of at least six months. Within that guideline, you can refinance as often as you want — but you’ll pay closing costs each time.
Home equity loans or lines of credit are alternatives for tapping a portion of home equity without refinancing your entire mortgage.
Pros and cons of a cash-out refinance
Pros
- Potentially lower interest rate (if rates dropped since your purchase)
- Simple repayment: One loan, one bill to remember
- Access more funds at a lower rate than with a personal loan or credit card
Cons
- Potentially higher interest rate (if rates went up since your purchase)
- Risk of foreclosure if you can’t make the payments
- Closing costs run 2%-6% of the new loan amount
- Funds aren’t instant: Underwriting can take weeks
Alternatives to a cash-out refinance
A cash-out refinance isn't the only way to tap your home's equity. You can also explore a HELOC or a home equity loan.
HELOCs
A home equity line of credit, or HELOC, works like a credit card — though unlike credit cards, HELOCs are secured by your home. You’re able to borrow up to a certain limit, repay some or all of what you took out, then do it again as needed. The lender uses your home’s value to set the HELOC limit. You may borrow during a draw period that lasts for several years and pay interest only on the balance. After the draw period ends, you may no longer take money out, and you'll pay back the principal plus interest.
HELOCs offer flexibility, but because many have variable rates, your monthly payment may increase over time.
» MORE: Best HELOC lenders
Home equity loans
If you know exactly how much you need to borrow, you may consider a home equity loan, which you receive as a lump sum and pay back at a fixed rate. Home equity loan rates are generally higher than cash-out refinance interest rates, but you can keep your existing rate on your primary mortgage.
» MORE: Best home equity loan lenders
More from NerdWallet
Last updated on December 16, 2024
Methodology
The star ratings on this page reflect each lender's rating for cash-out refinancing. We scored the category and chose lenders for this page using the following methodology:
NerdWallet reviewed more than 40 mortgage lenders, including the majority of the largest U.S. mortgage lenders by annual loan volume (measured among lenders with at least a 1% market share), lenders with significant online search volume and those that specialize in serving various audiences across the country.
All reviewed mortgage lenders that offer cash-out refinancing were evaluated based on (1) cash-out refinance loan volume, (2) cash-out refinance origination fees, (3) their rate transparency and (4) the ease of their online application. The highest scoring lenders appear on this page.
NerdWallet solicits information from reviewed lenders on a recurring basis throughout the year. All lender-provided information is verified through lender websites and interviews. We also utilized 2023 HMDA data for origination volume, origination fee, average interest rate and share-of-product data.
NerdWallet's Best Cash-Out Refinance Lenders of December 2024
- Rocket Mortgage, LLC: Best for cash-out refinances overall
- Navy Federal: Best for active military and veterans
- PenFed: Best for credit union experience
- U.S. Bank: Best for overall mortgage experience
- PNC Bank: Best for traditional lending experience
- Pennymac: Best for rate transparency
- loanDepot: Best for highly rated mobile app
- Network Capital: Best for fast closings
- Citibank: Best for traditional lending experience
- Carrington: Best for low average interest rates
- AmeriSave: Best for FHA loans
