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Best cash-out refinance mortgage lenders of January 2025
Getting a big, fat check from the equity in your home may seem like a dream come true. You probably thought you wouldn't see that money until you sold your home. But a cash-out refinance does just that — by replacing your existing mortgage, you can draw a lump sum from the value accrued in your home.
There are considerations to weigh, of course. While you can spend that money as you wish, you've added it right back into the mortgage balance of a new and larger loan. However, if you've made the decision and are ready to get that check in hand, here are the leading cash-out refinance mortgage lenders to choose from.
Learn more: 7 ways to build equity in your home
Best mortgage cash-out refinance lenders of January 2025
Best cash-out mortgage refinance lender overall
Truist
The Yahoo view: Truist is a mortgage provider that leaves little to be desired. It offers lots of cash-out refi choices and lower-than-median loan costs. Yet, customer service is rated only average.
Stars: 4.00
Read our full Truist mortgage review
Key benefits
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Truist refinancing mortgage rate estimates can be adjusted by one — or zero — discount points. One of our favorite tool options.
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Offers cash-out refinancing on conventional, VA, FHA, and jumbo loans.
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Refinance rate locks are available for up to 90 days.
Need to know
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Truist says most refinances close within 45 to 60 days after you apply.
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Sample mortgage rates don't reveal the specific credit approval standards required to earn the rates shown.
Read more: Should you lock in a mortgage rate, and if so, when?
Best cash-out refinance lender for conventional loans
Bank of America
The Yahoo view: Bank of America does big business in conventional loans. And it offers a unique tool to help you get started with a cash-out refinance: a market estimate that tells you how much your home may be worth.
Stars: 3.90
Read our full Bank of America Mortgage review
Key benefits
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Bank of America has a very useful home value estimator, which is a good first step in exploring a cash-out refinance loan.
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Existing customers may qualify for interest rate reductions or a lower origination fee.
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Offers cash-out refis with fixed or adjustable rates.
Need to know
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Bank of America ranks near the top of J.D. Power's Mortgage Origination Satisfaction Study.
Dig deeper: What conventional loans are and how they work
Best cash-out refinance lender for jumbo loans
Citi Mortgage
The Yahoo view: Citi Mortgage has a track record of making loans with median amounts in the high six figures. That puts them in the sweet spot for jumbo loan cash-out refinancing.
Stars: 3.80
Read our full Citibank mortgage review
Key benefits
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With a median loan amount of $905,000 in 2023, Citi is well qualified — and apparently very willing — to tackle jumbo refinancing.
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Citi Mortgage has a refinancing guide that walks you through six steps of the loan process, including relevant calculators.
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New and existing Citibank customers may qualify for interest rate discounts or a closing cost credit on a cash-out refinance.
Need to know
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Sample interest rate assumptions aren't provided.
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Ranked in the top five mortgage lenders for customer satisfaction, according to J.D. Power.
Learn more: How jumbo loans work
Best cash-out refinance lender for VA loans
Pennymac
The Yahoo view: Pennymac is the second-largest VA lender in the U.S., so it is a go-to resource for a VA cash-out refinance.
Stars: 3.80
Read our full Pennymac mortgage review
Key benefits
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Pennymac shows a half-dozen different cash-out refinance rates, including VA fixed-rate loans with terms of 15, 20, or 30 years.
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A home value tool allows you to put in an address, get an estimated price per square foot, and explore sales of comparable homes in your neighborhood.
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Even if the VA does not back your original mortgage, you may still qualify for a VA cash-out refinance if you have service-related eligibility.
Need to know
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Pennymac offered a much-lower-than-median home loan interest rate on mortgages issued in 2023 — but a higher-than-median total loan cost.
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Pennymac has a well-below-average rating for customer satisfaction in the latest J.D. Power report.
Dig deeper: How a VA cash-out refinance works
Best cash-out refinance lender for FHA loans
AmeriHome
The Yahoo view: AmeriHome is a top-five FHA lender by volume and offers cash-out refinancing specifically for these popular government loans.
Stars: 3.60
Read our full AmeriHome Mortgage review
Key benefits
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A "free instant rate quote" takes only "60 seconds" without a credit inquiry. However, you will have to provide your contact info.
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Earns Yahoo Finance's highest 5-star rating in our Online Features category for excellent online resources, such as various calculators and a video library.
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AmeriHome accepts alternative credit data for borrowers without a typical credit history or consistent income. That can include using bank statements and assets to qualify.
Need to know
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Doesn't originate mortgages in Hawaii, Massachusetts, or New York.
Learn more: How an FHA cash-out refinance works
Best cash-out refinance lender for borrowers with bad credit
Rocket Mortgage
The Yahoo view: Rocket Mortgage is the largest retail mortgage lender in the nation. Even with that kind of volume, it ranks high in customer satisfaction. And it has flexibility in making loans to those with less-than-perfect credit scores.
Stars: 3.06
Read our full Rocket Mortgage review
Key benefits
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You can qualify for a cash-out refi with a credit score as low as 580. However, if you have a conventional rather than a government-backed loan, it will take a 620.
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Rocket Mortgage says you'll get loan options in as little as seven minutes with no hit to your credit score.
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A home equity calculator will help you decide if a cash-out refi will work for you.
Need to know
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While Rocket is famous for its online application, you will still need to talk to a human to get things rolling.
Dig deeper: 9 options for refinancing a mortgage with bad credit
What is cash-out refinancing?
Cash-out refinancing rolls your home equity into a new loan. You can use that money to pay off high-interest credit cards, for home improvements, or anything else.
So yes, you get a big check for the value that was locked up in the walls of your home, but you're paying interest on that money as part of the additional debt you take on.
Learn more: How a cash-out refinance works
Alternatives to cash-out refinancing
Instead of a new mortgage, you might want to consider a second mortgage. That's what home equity loans and lines of credit are. You keep your current mortgage and add another home loan — and another monthly payment.
Home equity loans give you a lump-sum payment of equity. HELOCs allow you to withdraw equity over time and pay interest only on the line of credit balance.
Learn more and compare:
Tips for comparing cash-out refinance lenders
When shopping for the best lender for a cash-out refinance, you may be thinking of one thing: getting the big check. But the real wealth-building way to manage debt generally boils down to the interest rate you earn and the fees you pay.
You might be surprised just how much loan offers from different lenders can be. One lender might offer you a super low rate — but then hit you with hefty fees. You need to find the right balance: a fair rate and reasonable fees.
That's the power of comparison-shopping mortgage lenders. When you get preapproved, you'll be able to put loan offers side-by-side to determine which lender is giving you the best overall deal. Sure, it's a pain. Yes, it takes time. And most people are just happy to get a one-and-done loan offer.
But they're the ones who don't realize how much they could have saved over the long term with a better interest rate and lower fees. You do. And you'll still get the big check.
Read more: How to get the lowest interest rate on a mortgage
Mortgage lenders that did not make our cash-out refinance lender list
We seriously considered the following mortgage lenders for our best-of list, but they weren’t quite as strong as our top picks:
Best cash-out refinance mortgage lender FAQs
Which bank is best for cash-out refinancing?
Banks can have a lot of flexibility when it comes to cash-out refinancing because they want to expand their relationships with customers. So, your current bank could be the best bank for a cash-out refinance. As an existing client, you may receive fee discounts or interest rate breaks. It's always a good idea to shop for different types of lenders too. Consider a bank, credit union, and retail mortgage lender to find which one offers you the best terms.
What is the current rate for a cash-out refinance?
Cash-out refinance mortgage rates vary daily. However, it is important to know that they are usually slightly higher than traditional refinance rates. That's because lenders believe a homeowner tapping the equity in their home and adding that sum to a new loan carries more risk than a borrower who has paid down a chunk of principal.
Is it hard to get approved for a cash-out refinance?
Not necessarily. It is, after all, just another mortgage. The usual credit parameters come into play: your debt-to-income ratio, credit score, and payment history. Obviously, you'll also need to have some equity in your home. The amount required varies by the type of loan, but at least 20% is a common guideline.
Yahoo Finance mortgage lender methodology
Yahoo Finance identified the best mortgage lenders by analyzing and grading leading national lenders, which were compiled from 2023 Home Mortgage Disclosure Act data. The lenders were then scored on a quintile scale for five criteria: the median interest rate offered to borrowers, rate transparency, median fees and loan costs, affordability factors including loan offerings and down payment assistance, and online educational resources and calculators featured on lender websites.
Review of the Nationwide Multistate Licensing System’s data on regulatory actions enabled a penalty to the score of any lender with a mortgage-related administrative or enforcement action within the past five years.
Advertisers or sponsorships do not influence ratings.
This article was edited by Laura Grace Tarpley.
