15 of the best mortgage refinance companies for 2021
The best mortgage refinance companies run the gamut from online-only lenders to national banks. (iStock) Many American homeowners took advantage of the historically low interest rates seen in 2020. But with rates still low, it’s not too late to get a good deal on a mortgage refinance. Whether you want to save on interest, free up cash or tap into your home equity, refinancing can be a great financial decision. Below is a list of some of the best mortgage refinance companies that are likely to provide a satisfying customer experience, according to Credible’s home loan experts. When it comes to selecting the best mortgage lender, you’ll first need to consider what’s most important to you as a customer. For instance, if you value a lender that has plenty of physical branch locations, you’ll want to consider a national bank like Wells Fargo or Bank of America. Here's a look at each refinance lender, which clearly lists what they’re best for, along with their available refinance options and credit score requirement for a conventional loan. Look for the asterisk to indicate a vetted Credible partner lender. Best for in-house loan servicing Caliber Home Loans offers a variety of conventional and government-backed loans, including VA streamline (IRRRL) and cash-out refinancing options for homeowners with sufficient equity. One thing that makes Caliber one of the best refinance lenders is that it services a majority of its own loans, so it’s less likely that your loan would be sold to a company you’ve never heard of. Pros Cons Lender details Best wholesale mortgage lender JMAC Lending is a wholesale mortgage lender, which means it doesn’t work directly with the public. Rather, it partners with mortgage brokers who work with a variety of lenders to give their clients a range of loan options. The benefit to the borrower is that you can compare loans from different lenders and choose the one that best meets your needs. Pros Cons Lender details Compare mortgage rates and see if you qualify for a mortgage refinance right now using Credible’s free online tools. Best non-bank lender LoanDepot is America’s second-largest non-bank mortgage lender. Its proprietary software platform, mello smartloan, lets you work through the entire loan process online. Once you’ve taken out a loan with loanDepot, it’ll waive lender fees and cover the cost of the appraisal in the event you refinance with the company in the future. Pros Cons Lender details Best high-volume lender As America’s largest mortgage lender, with $320 billion dollars in loans closed in 2020, Quicken Loans originates refinance loans in all 50 states. You can complete the entire loan process online using Quicken’s Rocket Mortgage digital platform or you can work with a mortgage rep via phone, email or chat seven days a week. Quicken has been ranked highest in U.S. customer satisfaction for primary mortgage origination by J.D. Power for 11 consecutive years, as well as primary mortgage servicing for seven consecutive years. Pros Cons Lender details Best for refinancing remotely Stearns has over 30 years of experience helping its customers purchase and refinance their homes. The Stearns Digital platform streamlines your loan application and processing. However, you can also meet face to face with your loan originator without leaving home via screen sharing, a feature just one other refinance lender on this list offers. Pros Cons Lender details Best for quick closings United Wholesale Mortgage is a loan wholesaler, so you can’t borrow from the company directly. However, its loans might be an option for you if your mortgage broker is a UWM partner. The average UWM loan is clear to close 14 days after the application is submitted, making it one of the faster turnaround times we’ve seen advertised among various lenders. Pros Cons Lender details Best loyalty perks As one of the nation’s "Big Four" banks — Chase, Wells Fargo, and Citi being the others — Bank of America offers a solid selection of refinance loans plus perks you can’t get with a non-bank lender. One perk Bank of America offers through its Preferred Rewards program is an origination fee discount if you meet minimum balance requirements across all of your Bank of America accounts. You may also be eligible for an interest rate discount on home equity loans. Pros Cons Lender details Best for well-qualified borrowers Chase is similar to Bank of America in terms of the scope of its products and services but the website is short on loan specifics so you’ll need to contact a loan specialist to gather more detailed loan information. That said, if you’re looking for a one-stop-shop for managing your finances, including investments, and you have a solid credit rating, Chase is a strong contender. Pros Cons Lender details Best for physical branch locations The last of the "Big Four" banks on this list, Wells Fargo has scaled back its refinance offerings in the past few years. For example, it temporarily suspended cash-out refinances and VA refinances are limited to streamline (IRRRL) loans. Wells Fargo still has a large number of physical branch locations throughout the U.S. and plenty of loan products to choose from. You can apply online or arrange to have a mortgage specialist contact you. Pros Cons Lender details Best online lending platform Rocket Mortgage is the online platform for Quicken loans. It is not itself a lender — when you apply for a loan from the Rocket website, Quicken processes the application. The Rocket Mortgage platform lets you submit your documents online, work through and track the progress of your loan from application to closing. Pros Cons Lender details Best regional lender PNC is a regional bank, and although you can’t apply for a refinance loan online, you can start the process by filling out a form on the bank’s website. This top refinance lender is likely to appeal more to homeowners in the eastern half of the U.S., where a majority of the bank’s branches are located. Pros Cons Lender details Best for veterans Veterans United is the nation’s top lender for VA purchase loans and it offers VA refinance loans as well. Although Veterans United also has loans for those with no military affiliation, its clear focus is on serving veterans and active members of the armed forces. The lender offers two VA loan refinancing options: a streamline refinance and a cash-out refinance. The streamline option has limited paperwork and typically requires few (if any) out-of-pocket costs. Pros Cons Lender details Best credit union lender Navy Federal is the only credit union on our list. To be eligible to join, you or an immediate member of your family or household must have a connection to the armed forces, the Department of Defense or the National Guard. The credit union has several refinance options, including a unique Military Choice loan for qualified members that have used up their VA benefit. Pros Cons Lender details Best online lender Better.com is an online lender that touts a streamlined refinancing process. You can have a loan estimate in seconds and lock in your rate online at any time. While Better only has a limited number of products (you won’t find government-backed mortgages here), its process is entirely online and could make for a convenient option if you’d prefer not to have any in-person meetings. Pros Cons Lender details Best for borrowers with student loans SoFi might be best known for its investing app but it also offers a variety of online financial services, including mortgage refinancing. The company offers a student loan cash-out refinance option that lets you save on your home refinance loan while drawing equity to pay down student debt. Pros Cons Lender details If you're confident in your credit score then insert your estimated score into Credible's free tools to see what kind of rates you qualify for. When you refinance, you’ll replace your current mortgage with a new mortgage. That means you must borrow at least as much as you currently owe. The two primary types of refinancing are rate-and-term refinances and cash-out refinances. Here’s a quick breakdown of how the two differ: A homeowner might want to refinance for any number of reasons. Here are some of the more common reasons: With Credible's free online tools, you can complete the entire refinance process — from comparing mortgage rates to closing the loan — on the same platform. Start the process now. Whether or not you refinance can significantly impact your finances for years to come. Generally, refinancing your mortgage makes sense if it saves you money on interest or reduces your risk of defaulting on the loan. Because the decision is so impactful, it’s important to compare lenders before you make a final choice. Interest, including points and terms, loan fees and closing costs, all impact the actual cost of your mortgage refinance loan. Want to know more? Here’s some additional information about refinancing a home loan: Source: Read Full Article
The best mortgage refinance lenders of 2021
Caliber Home Loans
JMAC Lending
loanDepot
Quicken Loans
Stearns
United Wholesale Mortgage
Bank of America
Chase
Wells Fargo
Rocket Mortgage
PNC
Veterans United
Navy Federal
Better.com
SoFi
How mortgage refinancing works
Reasons to refinance
Should you refinance your mortgage?
More resources on mortgage refinancing