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Best Mortgage Refinance Lenders

For homeowners looking to save money on their mortgage by looking into mortgage refinancing, it's worth doing research into the best refinance mortgage lenders to discover the best rate and repayment terms for your home. While mortgage rates can fluctuate, they remain near historically record lows according to Nasdaq statistics, making it an ideal time for homeowners to make a move.

Before finding ways to obtain lower mortgage refinance rates, reduce the length of your mortgage, or obtain some home equity without selling your home, finding a reputable lender to do business with can simplify the process in the long run and result in bigger savings. However, not all companies provide the same high quality of service and customer service.

Who Are the Best Mortgage Refinance Lenders Out There?

When looking for the best mortgage refinance companies out there, some factors that you should consider apart from a lower interest rate include a good loan to value ratio, the types of financing they offer (such as cash-out refinancing or adjustable-rate mortgage), and whether there is a minimum credit score that you need to obtain a loan.

During the application process, you should also ask whether they accept alternative forms of credit while doing research on the customer service quality of your mortgage lender as well as any down payment they might require. Some companies specialize in specific types of loans, such as Federal Housing Administration loans or fixed-rate loans.

1.) Carrington Mortgage Services

Since 2011, Carrington Mortgage Services has funded $22 billion in home loans, making them a highly reputable mortgage company. They provide conventional and government-backed mortgages, along with a competitive refinance rate. They're a good choice for first-time homebuyers or those who have issues with meeting a min credit score.

Pros

  • Has a Better Business Bureau Rating of A+
  • May accept lower credit scores
  • Offers a wide range of mortgage types
  • Can consider alternative forms of credit like bank statements and rent payments

Cons

  • Unable to apply for preapproval online
  • Need to speak to a loan officer for a custom rate

2.) Guild Mortage

One of Guild Mortgage's biggest strengths is that their digital platform provides added convenience for mortgage refinancing with a paperless loan application, document upload, and the ability to obtain information from employers and other companies. Their portal enables consumers to stay updated on their application, requiring a minimum credit score of around 600.

Pros

  • Offer a large variety of mortgage types including conventional, FHA, USDA, and VA
  • Enables consumers to submit other forms of credit

Cons

  • Lacks construction loans, HELOCs, and home equity types
  • Need to contact a loan officer for mortgage rates
  • May have some issues with paying for annual homeowner's insurance payments

3.) Better.com

For those looking for an online lender, Better.com can help refinance your mortgage to a conventional loan. According to their website, they're particularly speedy when it comes to processing applications, closing in as fast as 21 days. This is 2x faster compared to the industry average. They also don't charge any lender, application, or origination fees.

Pros

  • Has a convenient online application
  • Easy to obtain customized rates
  • Highly responsive customer service team
  • Good refinance rates

Cons

  • Doesn't provide access to home equity or HELOCs.
  • Some negative customer reviews due to rate changes

4.) Chase

Chase provides a variety of loan types and is known for a good level of customer satisfaction. They offer a range of online prequalification and home buying resources and can offer specialized guidance at their physical branches and online. However, a minimum credit score of 620 is typically needed to qualify for a loan.

Pros

  • Has an A+ rating in trustworthiness from the Better Business Bureau
  • Work with local state specialists
  • Available nationwide
  • Allows applicants to prequalify online

Cons

  • Doesn't take alternative forms of credit
  • May charge additional extra fees
  • Could provide a better mobile experience

5.) Ally Bank

An online bank based in Detroit, Ally Bank provides traditional banking services in addition to refinance loans and jumbo loans. Their process can be fully completed online with easy-to-understand language, and pre-approval in as little as 3 minutes. In addition, their closing rate is usually up to 10 days faster than the industry average, which can be helpful for those in a rush.

Pros

  • Special program for first-time homebuyers
  • Existing Ally clients get a discount
  • Convenient online application
  • Provides transparent pricing

Cons

  • Limited products (no FHA, VA, and USDA loans)
  • No home equity loans
  • Limited to certain states
  • Lacks physical branches

What Does Refinancing Your Mortgage Mean?

Refinancing a mortgage involves taking out another loan to pay off your original mortgage. This can help individuals take advantage of lower mortgage interest rates by comparing a new offer with an existing loan. An improved credit score means that you might be able to get better terms, but you need to be aware of things like closing costs along with other factors you should be familiar with.

Rate-and-Term Refinance Loan

This type of loan helps you change the interest rate and/or loan term without adjusting your loan amount.

Cash-Out Refinance Loan

This type of loan can help you get the cash you need by cashing out a percentage of the home's equity. However, it can lead to a higher monthly payment and interest rate compared to a rate-and-term loan.

Frequently Asked Questions

Is a mortgage refinance something I should consider?

You should consider looking for a new lender if you're trying to lower the interest rate on your current loan. Ideally, you should be able to save at least 1% or 2% on current interest rates.

How long does refinance take?

On average, a refinance can take around 30-45 days but a lender may be able to process loans even faster. Depending on the state of your finances and the size of your property, this time period can vary.

Additional Resources

The Basics of Mortgages

This resource from the Consumer Financial Protection Bureau provides information on how to read a mortgage statement, where to find help if you're looking for a mortgage loan, and what things you should be aware of when making a down payment and shopping for a cheaper mortgage rate.

If you're looking for conventional loans, you'll usually need a min credit score of at least 620 to qualify for a loan with most lenders. To strengthen your credit score, you'll need to pay off your debts and start making payments on time to get access to better rates. A debt-to-income ratio of 36% or less is also ideal.

For first-time homebuyers that are still looking for ways to finance their fixed-rate mortgage, rocket mortgage, or other loan types, our team at Any Credit can help you choose a realistic loan option for your current financial state and needs. Contact Any Credit today!

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