Best cash-out refinance lenders
If you’re interested in a cash-out refi, consider one of these companies
When you have home equity, getting a cash-out refinance can be a solid choice for low-cost financing. These loans replace your existing mortgage and increase the balance by the amount of money withdrawn. In some cases, you may even be able to lower your interest rate or your monthly payment.
To make our top choices, our research team evaluated 82 lenders that offer cash-out refinancing. We selected eight based on factors including minimum required credit score, loan limits, state availability, fees and closing costs, types of loans available, and repayment terms.
Our picks may be Authorized Partners who compensate us. This does not affect our recommendations or evaluations but may affect the order in which companies appear.
Compare top cash-out refinance lenders
When choosing a lender for your cash-out refinance, you need to understand the pros and cons of how each lender operates. There are many excellent lenders out there, but each borrower has unique needs that not every lender can accommodate.
It’s a good idea to read consumer reviews to learn how existing customers have been treated before applying for your new mortgage.
- Types of loans: Fixed-rate, variable-rate, cash-out, FHA, VA, USDA, HELOC
- Minimum credit score: 600
- Repayment terms: 10 - 30 years
AmeriSave Mortgage is a full-service mortgage lender based in Atlanta, Georgia. It offers all types of mortgages, including cash-out refinance, government-backed loans and home equity lines of credit (HELOCs), in every state except New York. Borrowers can apply online.
The maximum loan amount you can get with AmeriSave is $249,000, and repayment terms range from 10 to 30 years. You will need to pay closing costs that are 3% to 6% of the loan, and there is a $195 application fee. A minimum credit score of 600 is required.
If you're interested in a cash-out refinance but not yet ready to move forward, you can provide your cell number for AmeriSave Mortgage to text you about significant rate fluctuations.
What we like
- Credit approval in just three minutes
- Availability in almost every state (except New York)
- Cash-out refinance up to 80% of your home's value
What to consider
- Not available in New York state
- Does not offer home equity loans
- High closing costs of 3% to 6%
What reviewers say
Daniel from Virginia said that "the process was the easiest I've done."
- Types of loans: Conventional, FHA, VA, USDA, jumbo, refinance, reverse mortgage, low-down-payment, home renovation, TRU offer, Buydown
- Minimum credit score: 580
- Repayment terms: Up to 30 years
Cherry Creek Mortgage is based in Colorado and has been in business for more than 35 years. It has originated over $78 billion in loans for more than 300,000 families. Borrowers can get a variety of mortgages to buy or refinance their homes, including conventional, jumbo, government-backed and low-down-payment loans.
You can get a cash-out refinance loan for up to $970,000 with repayment terms of up to 30 years. Closing costs range from 2% to 5%, and there are other fees you’ll need to pay (although the company does not disclose what those amounts are). Loans are available to borrowers in 44 states and Washington, D.C.
Cherry Creek Mortgage also has loan programs for those with bad credit who want to purchase or refinance their homes, including when you want to do a cash-out refi.
What we like
- Multiple loan options, including specialized programs
- Rate buydown programs available to save money on interest
- On-time closing guarantee backed by up to $1,500 in closing credits
What to consider
- Only available in 44 states and Washington, D.C.
- Must search for a loan officer to get started
- Rate information not available on its website
What reviewers say
- Types of loans: FHA, VA, USDA, conventional, FHA cash-out refinance, VA cash-out refinance
- Minimum credit score: 550
- Repayment terms: 10 - 20 years
Freedom Mortgage is a family business formerly known as J.G. Wentworth, founded in 1990. Since then, it has grown into a top residential lender that's been named the No. 1 VA lender and FHA lender in the U.S. by Inside Mortgage Finance.
You can get a cash-out refinance loan from Freedom Mortgage for up to 80% of the loan-to-value (LTV) ratio of your home. Repayment terms range from 10 to 20 years, and you can expect to pay 2% to 6% of the loan amount in closing costs. Appraisal and other fees may be charged as well.
It offers numerous loan programs for homeowners, including the ability to do a cash-out refinance through a conventional, FHA or VA loan. However, it does not offer HELOC or home equity loan products if you want to keep your existing mortgage.
While you can submit your information online, you must speak with a loan officer to receive rate information or apply for a new mortgage. If you're not ready to get a loan today or rates aren't low enough, you can sign up for Eagle Eye program texts that alert you when rates drop.
Freedom Mortgage is available to borrowers in all 50 U.S. states, Washington, D.C., and two U.S. territories. A minimum credit score of 550 is required (for VA loans only — other loans have higher minimum requirements).
What we like
- Availability in all 50 states
- Offers multiple mortgage options for different borrowers
- Get text alerts when mortgage rates drop
What to consider
- Must share contact info to get rates
- Does not offer HELOCs or home equity loans
- Cannot complete a loan application online
What reviewers say
However, other reviews from customers detail frustrations with incorrect escrow payments, misleading advertisements and bad customer service.
- Types of loans: Fixed-rate conventional refinance, VA Interest Rate Reduction Refinance Loan, FHA 203(k) refinance, FHA streamline refinance, FHA cash-out Refinance, USDA rural streamline refinance
- Minimum credit score: 580
- Repayment terms: Not disclosed
Homebridge is a privately held, nonbank mortgage lender based in New Jersey. It has been offering a variety of mortgage products to borrowers for more than 30 years. Borrowers can purchase or refinance their homes with conventional, jumbo and government-backed mortgages. Additionally, Homebridge offers a HELOC product of up to $400,000 to tap into your equity if you want to keep your existing mortgage.
For borrowers who want a cash-out refinance, Homebridge Financial enables you to access your equity with conventional or government-backed loans. The maximum for a conventional cash-out refinance is $484,000, or up to $2 million for a VA loan. For FHA refinancing, loans are up to 97.75% of your home’s after-improved value. Loans are available in 49 states and Washington, D.C.
Closing costs are 2% to 5% of the loan amount. A minimum credit score of 580 is required.
What we like
- Availability in almost every state
- 100% online application that syncs with your bank accounts
- Customer service is available six days a week
What to consider
- Loans not available in New York state
- Does not share interest rate information on its website
What reviewers say
Xinhui from Michigan said: "I was charged twice: $2,517.67 dollar deduction from each account. This company's website doesn't provide any efficient online charting help and doesn't take any email communication regarding this matter. Calling them was extremely painful — the longer than usual waiting time and the sudden disconnected line!"
- Types of loans: Rate-and-term refinance, cash-out refinance, streamline refinance (government-backed loans from the FHA, VA or USDA), high-LTV refinance
- Minimum credit score: 500
- Repayment terms: Varies based on lender
LendingTree is an online marketplace and reviews website that connects people to multiple loan types, including mortgages, credit cards, auto loans and more. In addition to applying for a new loan, you can access consumer education through articles covering the latest trends, comparisons among lenders and product reviews.
Since LendingTree isn’t a lender itself, rates and loan amounts vary across lenders; however, you can roughly expect up to $726,000 for conventional loans, up to $472,000 for FHA loans, and over $1 million for FHA high-cost areas.
Depending on the lender, application fees can range from $75 to $500, and appraisal fees range from $225 to $700. Closing costs are typically 2% to 6% of the loan amount, but this varies by lender.
Credit score requirements also vary, but there are FHA options with a minimum score of 500.
What’s nice about the LendingTree marketplace is that it enables you to receive multiple quotes from lenders after submitting just one application. However, the downside is your information may be shared with multiple lenders. These lenders tend to call all at once to try to win your business, so the volume of calls may overwhelm some borrowers.
What we like
- Ability to compare multiple loan offers with a single application
- Provides lenders from all 50 states to choose from
- Lenders provide options for borrowers with all types of credit histories
What to consider
- All mortgage applications are handled through other companies
- You may receive calls and emails from multiple lenders
- Does not service any loans
What reviewers say
However, others complain about receiving too many calls and emails from lenders as soon as they submit their information online.
- Types of loans: Conventional, FHA, FHA streamline, VA, VA IRRRL, jumbo
- Minimum credit score: 500
- Repayment terms: Not disclosed
While the name Mr. Cooper sounds more like your high school gym teacher than a mortgage company, the company is one of the largest mortgage originators and servicers in the U.S. Loans are available in all 50 U.S. states plus Washington, D.C.
You can get a cash-out refinance loan from Mr. Cooper for up to 80% of the LTV ratio of your home (90% for VA loans). Jumbo mortgages are available for up to $2.5 million. Expect to pay 2% to 6% of the loan amount in closing costs, plus an appraisal fee.
The minimum credit score requirement is 500 for FHA loans and 620 for conventional loans.
Borrowers can easily tell where their loans are in the underwriting process with Mr. Cooper's digital loan tracker. The company offers a close-on-time guarantee, which covers your first month's payment of principal and interest if it fails to meet the deadline.
What we like
- Availability in all 50 states
- Digital loan tracker keeps you informed throughout the application process
- Close-on-time guarantee or your first month's mortgage payment is covered
What to consider
- Cannot complete mortgage application without speaking to a loan officer
- Does not offer USDA loans
- HELOCs and home equity loans are not available
What reviewers say
Steven from California said, "The application process moved swiftly and didn’t have a big problem. It's too bad they can't plug into the information they already had, but other than that, it's been a seamless process."
- Types of loans: Fixed- and adjustable-rate loans, conventional, FHA, VA, USDA, jumbo loans, I CAN Mortgage, Buydown loan, Non-QM loan, reverse mortgage
- Minimum credit score: 500
- Repayment terms: 5 - 30 years
New American Funding is a privately owned, direct mortgage lender based in Orange County, California. It offers one of the widest arrays of mortgage types of any lender on this list. The company offers both fixed- and variable-rate loans that are conventional or government-backed. Borrowers can also choose from unique mortgage products that match their financing needs.
Cash-out refinancing from New American Funding ranges from $726,200 to over $1 million for conventional loans, and from $647,200 to $970,000 for FHA mortgages. Repayment terms range from five to 30 years. Expect to pay 3% to 6% of the loan amount in closing costs, plus an appraisal fee.
Interest rates change regularly and vary by loan type; New American Funding provides interest rates on its site for popular mortgage products.
New American Funding loans are available in 49 states plus Washington, D.C. There’s a minimum credit score requirement of 500 for FHA loans and 620 for conventional loans.
What we like
- Mortgage availability for credit scores as low as 500
- Wide variety of mortgages for all types of borrowers
- Focus on lending to underserved communities
What to consider
- Does not list lender fees on its website
- Application cannot be fully completed online or without registering first
- Home equity loans are not available
What reviewers say
Amanda from Florida reported: "Tania not only took the time to make our entire loan process easy to understand; she broke it all down line by line to make perfect sense financially. She was so kind and compassionate and displayed such patience while explaining every detail to my husband and I throughout the entire process, literally from day one to the very end of closing day and then some."
- Types of loans: Conventional, FHA, USDA, VA, jumbo, Flexible Advantage refinance, adjustable-rate mortgage
- Minimum credit score: 500
- Repayment terms: Not disclosed
Carrington Mortgage Services is a fully integrated mortgage company that started in 2007. In addition to originating and servicing mortgages, its sister companies also offer real estate agent, title and escrow services for borrowers. The company originates mortgages in 48 states (excluding North Dakota and Massachusetts), but it services mortgages in all 50. It offers cash-out refinancing for conventional, FHA and VA loans.
Cash-out refinancing with Carrington Mortgage Services is available for up to $510,000, and up to $765,000 in high-cost regions. Jumbo mortgages are available for up to $2.5 million.
Closing costs are 3% to 6% of the loan amount, plus an appraisal fee. The minimum credit score required is 500.
Additionally, it has a proprietary mortgage product for borrowers who have trouble qualifying for traditional mortgage loans — those with low credit scores, high debt-to-income (DTI) ratios, recent credit events or difficulty proving income.
What we like
- Multiple mortgage products available, including low-down-payment options
- Loan programs for nontraditional borrowers
- Cash-out refinancing available for those with credit scores as low as 500
What to consider
- No availability in North Dakota or Massachusetts
- No cash out on adjustable-rate mortgages
- Must speak with a loan officer to get rates and apply
What reviewers say
Zoe from Texas said of their officer: “He kept me updated on every step of my refinance, and even when we hit a massive roadblock, he was there through it all. He's thorough, easy to speak to and understands the process and how stressful it is for the borrower.”
However, other borrowers complain that once the loans are funded, they've had trouble resolving escrow issues and online access to their accounts.
Cash-out vs. rate-and-term refinancing
There are two main types of refinancing: cash-out and rate-and-term.
| Cash-out | Rate-and-term | |
|---|---|---|
| Loan amount | Balance increases by the amount of cash withdrawn | Balance remains the same |
| Interest rate | Lenders may charge a higher rate when getting cash out | Typically lowers the rate on your current mortgage |
| Loan term | Typically resets the clock to 30 years | Reset the clock to 30 years or may shorten the term |
| Programs available | Not all loan products allow cash out | Can refinance into almost any loan product |
| PMI payments | Too much cash out may result in a loan requiring PMI | May eliminate PMI if LTV is below 80% |
| Which borrowers? | Borrowers that need cash and want to repay over a long period of time | Borrowers that want to reduce their interest rate or loan term |
Alternatives to cash-out refinancing
Doing a cash-out refinance isn’t the best choice for every homeowner. Before submitting your application, consider these other options that may be a better fit for your financial needs:
- Home equity line of credit (HELOC): A HELOC is a second mortgage with a variable interest rate. You can borrow and repay your credit line repeatedly during the draw period and only pay interest on the money you use.
- Home equity loan: Home equity loans are second mortgages with a fixed interest rate and monthly payment amount. These loans allow you to keep your first mortgage in place and borrow a set amount of money with a defined repayment plan.
- 0% APR credit card offer: Many credit cards offer an intro 0% APR on purchases, balance transfers or both. These no-interest periods generally last 12 to 21 months.
- Personal loan: A personal loan is generally unsecured, so you aren’t putting your home at risk in case of a default. These loans offer a fixed interest rate and monthly payment throughout the loan term.
- Personal line of credit: This revolving line of credit offers a variable interest rate with monthly payments based on how much you borrow each month. An unsecured line of credit does not put your home at risk.
- Secured loan: Borrowers can use investments, CDs or other assets as security for the loan. It typically has a fixed interest rate and fixed payments throughout the loan term.
FAQ
When is a good time to do a cash-out refinance?
There are certain situations where it can make sense to replace your current mortgage with a cash-out refinance. Homeowners who need cash and have a higher interest rate on their first mortgage are excellent candidates to do a cash-out refi. Mortgages are generally for 15 to 30 years, so a cash-out refinance also makes sense when you need extra time to repay the loan.
Can I get a cash-out refinance loan with bad credit?
It is possible to pull cash from your home with bad credit. However, your interest rate, refinance costs and terms may not be as good as they would be for a homeowner with better credit. Take steps to improve your credit as much as possible before applying. If you need money now, you can do a cash-out refinance today, then refinance again to lower the rate or get better terms as your credit improves.
Is cash-out refinancing worth it?
Getting cash from your home through a cash-out refinance can be worth it. Because the loan is secured by your home, the interest rate is often much less than other types of loans or credit cards. Additionally, since mortgages typically have 15- to 30-year terms, monthly payments are lower because repayment is spread out over many years.
Will a cash-out refinance hurt my credit score?
When you apply for a cash-out refinance, your score may drop a few points because of the inquiries and opening of a new account. However, it is possible for your score to increase if you use the money to consolidate credit card debt. You'll keep your utilization ratio low and increase your score if you can resist making new charges on those paid-off accounts.
Bottom line
Getting a cash-out refinance allows homeowners to tap into their home equity at an attractive interest rate. Because you are spreading out the repayment of that cash withdrawal over a long period, your monthly payment tends to be smaller than with many other loan options. However, you are using your home to secure the loan, so your home is at risk if you have trouble repaying.
There are many quality cash-out refinance lenders available, so get quotes from several to find the one that best fits your financial situation. If getting cash out of your home through a new mortgage isn't right for you, there are other loan options available that could be a better fit.
Article sources
- FICO, " What's in my FICO Scores? " Accessed Jan. 27, 2023.
