Tapping into your home’s equity through a cash-out refinance can be a strategic financial move. Navigating the cash-out refinance process can feel overwhelming, but finding the right lender can make all the difference. Whether you’re looking to consolidate debt, fund home improvements, or invest in other opportunities, a cash-out refinance can make it that much easier to achieve your financial goals.
In this guide, we cover the best cash-out refinance lenders in the industry that can make the process an absolute breeze. Keep reading to find the perfect fit!
What Is a Cash-Out Refinance?
A cash-out refinance is a valuable tool that allows homeowners to convert their home equity into cash. This process involves replacing your existing mortgage with a new, larger loan. The difference between the old and new loan amounts is given to you as a lump sum. Using a cash-out refinance allows homeowners to access a portion of their built-up home equity, while still maintaining a mortgage on the property. Cash-out refinances can be used for a variety of different property types, from single family homes to multi-unit, and for primary homes, secondary homes and investment properties.
When you get a cash-out refinance, the new loan pays off your existing mortgage, and the difference, which represents your home equity, is provided to you in cash.
Why Get a Cash-Out Refinance?
Getting a cash-out refinance can be a strategic financial move if you’ve built up significant equity in your home. The cash that you unlock can then be used for various purposes, including:
- Home Improvements: Enhancing your property’s value and potentially increasing your home’s overall worth.
- Debt Consolidation: Combining high-interest debts into a lower-interest mortgage payment, potentially saving money.
- Large Purchases: Financing significant expenses like a new car, college tuition, or medical bills.
- Emergency Fund: Creating a financial safety net for unexpected costs.
- Investment Opportunities: Funding investment ventures or starting a business. Ultimately, the decision to cash-out refinance depends on your financial goals and circumstances.
- Educational Expenses: Financing education costs, such as tuition or student loans, for yourself or a loved one.
Keep in mind that some lenders may have specific rules about how you can use the money from a cash-out refinance, despite the various popular reasons for getting one. As you compare different lenders, make sure to ask about any limitations on how you can spend the funds.
What’s the Difference Between a Cash-Out Refinance and a Rate-and-Term Refinance?
While they’re both types of refinances, a cash-out refinance and a rate-and-term refinance are slightly different.
A rate-and-term refinance focuses on improving the terms of your loan by lowering your interest rate, adjusting the loan term, or both as a way to potentially lower your monthly payment or shorten the repayment time frame. You essentially replace your old mortgage with a new one, but the loan amount stays the same.
On the other hand, a cash-out refinance allows you to tap into your home’s equity by refinancing for a larger loan amount. The difference between the new and old loan amounts is given to you in cash, which can be used for various purposes.
How Was This List Formed?
To identify the best cash-out refinance lenders, we evaluated a range of factors including loan volume, customer satisfaction, lender experience, rate transparency, industry recognition, and overall brand reputation. It’s important to note that the lenders on this list are presented in no particular order.
The 10 Best Cash-Out Refinance Lenders
1. Rocket Mortgage
Rocket Mortgage, America’s largest mortgage lender, offers cash-out refinance options alongside their award-winning online mortgage experience to help homeowners achieve their financial goals. Homeowners can easily apply for a cash-out refinance to tap into their home equity, getting cash for renovations, debt consolidation, or even saving for retirement. Rocket Mortgage’s digital platforms ensure clients have 24/7 access to their loan information, making it easy to track your application and stay informed on the process.
Committed to delivering customized home financing solutions, Rocket Mortgage offers tailored refinance options to lower monthly payments or shorten loan terms, helping clients save money and pay off their mortgage faster. With a high client satisfaction rating and a mission to make home financing straightforward and accessible, Rocket Mortgage continues to be a trusted partner for homeowners seeking financial flexibility and certainty.
2. Guaranteed Rate
Guaranteed Rate offers a cash-out refinance process designed to provide homeowners with a seamless, digital mortgage experience with low rates, transparency, and excellent customer service. Founded 24 years ago, Guaranteed Rate has grown to become a leading mortgage lender, funding over $35 billion across its companies in 2023 alone. Their cash-out refinance options allow homeowners to access their home equity for different purposes such as home renovations or debt consolidation. Using their Same Day Mortgage™ technology, Guaranteed Rate can deliver loan approvals in just 24 hours. Their Rate App™ simplifies the process even more, allowing customers to apply for a HELOC in minutes and stay connected with mortgage specialists 24/7.
With a focus on customer satisfaction and financial well-being, Guaranteed Rate offers a quick, easy, and transparent refinancing experience that helps clients achieve their financial goals with confidence and ease.
3. SoFi
SoFi is dedicated to helping its members achieve financial independence, offering a straightforward and hassle-free cash-out refinance process. Since it was founded in 2011, SoFi has been focused on providing innovative financial solutions to help individuals get their money right. SoFi’s cash-out refinance options allow homeowners to tap into their home equity for a variety of financial needs like home improvements or debt consolidation. The application process is entirely online, making it convenient and quick, with pre-qualification taking just minutes. SoFi’s Mortgage Loan Officers provide personalized assistance throughout the refinancing journey, ensuring transparency and ease.
SoFi allows homeowners to refinance their mortgages efficiently by offering competitive rates and a seamless digital experience, providing them with the funds they need and aligning with their financial goals.
4. Defy Mortgage
Defy Mortgage brings bold innovation to the mortgage industry, offering non-traditional lending solutions tailored to meet the unique needs of today’s borrowers. Rejecting the one-size-fits-all approach of traditional lenders, Defy Mortgage is committed to providing a personalized and streamlined refinancing experience without the impersonal bureaucracy. Their cash-out refinance options help homeowners to leverage their home equity to reach various financial goals, such as debt consolidation, home improvements, or simply gaining access to cash for personal needs. With over 100 years of combined industry experience, Defy Mortgage’s team takes a close look at each borrower’s financial situation to craft mortgage options that fit their lifestyle.
Whether you’re looking for payment stability by switching from an adjustable-rate to a fixed-rate mortgage, lowering monthly payments through better interest rates, or changing loan terms, you’ll be sure to get a smooth, secure, and transparent refinancing process with Defy Mortgage. By helping homeowners tap into their home equity, Defy Mortgage empowers them to make their financial dreams a reality while defying traditional lending norms.
5. PenFed Credit Union
PenFed Credit Union, America’s second-largest federal credit union, is dedicated to uplifting its members and community by providing a range of financial services, including cash-out refinances. With a mission to deliver financial value, PenFed offers tailored refinancing options that allow homeowners to leverage their home equity for various purposes, such as consolidating debt, making home improvements, or reducing monthly payments. PenFed’s cash-out refinance process is designed to provide significant financial benefits, including lower interest rates, reduced payments, or shortened loan terms, all while maintaining the security and integrity of members’ financial information.
Focused on community service, financial literacy, and member support, PenFed continues to grow its family of 2.9 million members, ensuring that their financial goals are met with the highest level of service and care.
6. NBKC Bank
NBKC Bank offers a variety of cash-out refinance options designed to meet the unique needs of homeowners. Emphasizing simplicity, ease of use, and personal service, NBKC provides online-friendly tools and competitive rates to ensure customers keep more money in their pockets. Their cash-out refinance solutions allow homeowners to access their home equity, offering financial flexibility for reducing debt, making significant purchases, or lowering monthly payments. NBKC’s refinance options also include transitioning from an adjustable-rate to a fixed-rate mortgage, providing stability and predictability in payments.
With a commitment to top-notch service, NBKC ensures that every step of the refinancing process is supported by real, personal assistance, making it an ideal choice for those looking to refinance their mortgage in a way that aligns with their financial goals.
7. Allied Mortgage Group
Allied Mortgage Group is dedicated to providing a seamless and stress-free loan experience, allowing borrowers to focus on creating meaningful memories in their homes. Allied Mortgage Group prides itself on delivering great service and transparent, non-pushy advice to help customers make informed decisions. Their cash-out refinance options enable homeowners to access their home equity for various purposes, such as home improvements, debt consolidation, or funding college tuition.
Supported by hundreds of experienced loan advisors across the nation, Allied Mortgage Group is committed to helping customers achieve their financial goals and make lasting memories in their homes.
8. US Bank
U.S. Bank offers comprehensive cash-out refinance options designed to meet diverse financial needs. Their cash-out refinance option allows homeowners to access their home equity at competitive rates, making it a great choice for funding major purchases, consolidating debt, or financing home improvements. U.S. Bank is committed to improving their technology, which is seen through their ongoing investment in digital tools like the U.S. Bank Smart Assistant™.
With a focus on customer-centric services, U.S. Bank ensures a smooth refinancing process that aligns with customers’ financial goals and supports their long-term success.
9. Truist
Truist offers tailored cash-out refinance solutions designed to help homeowners achieve their financial goals while supporting their communities. At Truist, the mission is to inspire and build better lives through genuine care and leadership that empowers both clients and teammates. Their cash-out refinance options allow homeowners to leverage their home equity to access cash for significant expenses, such as home improvements, debt consolidation, or other necessities.
With competitive rates and a focus on making monthly payments predictable by switching to fixed-rate loans, Truist ensures a smooth refinancing process that helps clients own their homes faster and with greater financial stability.
10. Better Mortgage
Better Mortgage is revolutionizing the homeownership experience by offering a simpler, faster, and more accessible approach to cash-out refinances. The flaws in traditional mortgage lending have pushed Better Mortgage to leverage technology, eliminating unnecessary fees and streamlining the process. The company aims to digitize and automate home finance, making it cheaper and more efficient for consumers, all while being more transparent. Their cash-out refinance options allow homeowners to access their home equity quickly, unlocking funds for various needs such as home improvements, debt consolidation, or other significant expenses.
With high praises from USA Today and the Wall Street Journal, and over $100 billion in home loans funded entirely online, Better Mortgage continues to set new standards in the industry, making homeownership more attainable for all Americans.
