Top Cash-Out Refinance Lenders to Consider This December 2024!

Imagine transforming the hidden wealth in your home into real cash at your fingertips. That’s the magic of a cash-out refinance! Instead of waiting until you sell your property to access your equity, this clever financial move allows you to draw a significant lump sum from the value your home has appreciated over time.

Of course, like any financial decision, there are trade-offs to consider. While you have the freedom to spend that cash however you please, remember that it adds back to your mortgage balance with a new, larger loan. Ready to dive into this enticing opportunity? Here’s a roundup of the best cash-out refinance mortgage lenders to help you get that check in hand!

Discover more: 7 Creative Ways to Boost Your Home Equity

Our Take: Truist is a standout in the mortgage landscape, offering a myriad of cash-out refinance options at competitive rates. However, keep an eye on their customer service, which could use a little extra shine.

Rating: 4.00

Explore Our Full Truist Mortgage Review

Top Benefits:

• Truist lets you adjust refinancing rate estimates with one or even zero discount points. A tool we can get behind!

• They offer cash-out refinancing on various loan types, including conventional, VA, FHA, and jumbo loans.

• Lock in your refinance rate for up to 90 days, giving you peace of mind.

Key Insights:

• Most refinances close within 45 to 60 days from application — not bad at all!

• Be aware that sample mortgage rates don’t disclose specific credit approval criteria to get those rates.

Learn more: Understanding When to Lock in a Mortgage Rate

Our Take: Bank of America is a powerhouse for conventional loans and even offers a handy market estimate tool to kickstart your cash-out refinance journey.

Rating: 3.90

Explore Our Full Bank of America Mortgage Review

Top Benefits:

• With Bank of America’s home value estimator, you can easily gauge how much you could potentially cash out.

• Current customers may enjoy special perks, like interest rate reductions or lower origination fees.

• Choose from cash-out refinancing options with either fixed or adjustable rates, making it flexible for your financial needs.

Key Insights:

• Dig deeper: What Are Conventional Loans and How Do They Work?

Our Take: Citi Mortgage shines in the realm of jumbo loans, making it a solid option for those looking for cash-out refinancing in the upper price brackets.

Rating: 3.80

Explore Our Full Citibank Mortgage Review

Top Benefits:

• Citi’s median loan amount of $905,000 in 2023 tells you they’re well-versed in jumbo refinancing.

• Their comprehensive refinancing guide offers step-by-step assistance through the loan process, complete with handy calculators.

• Both new and existing customers may qualify for rate discounts and closing cost credits on cash-out refinancing.

Key Insights:

• Sample rate assumptions are not provided, so ask your lender for specifics.

• They rank among the top five for customer satisfaction according to J.D. Power.

Learn more: Understanding Jumbo Loans

Our Take: Pennymac stands tall as the second-largest VA lender nationwide, making it a fantastic choice for veterans seeking cash-out refinancing options.

Rating: 3.80

Explore Our Full Pennymac Mortgage Review

Top Benefits:

• Pennymac displays a range of cash-out refinance rates, including fixed-rate VA loans with various term lengths.

• Their home value tool makes it easy to estimate your property’s worth and explore comparable sales in your area.

• Service members may still qualify for a VA cash-out refinance, even if the original mortgage isn’t VA-backed, based on service-related eligibility.

Key Insights:

• In 2023, Pennymac offered lower-than-average interest rates, but keep in mind the total loan cost can be higher than median levels.

• Customer satisfaction ratings for Pennymac fell below average, according to recent J.D. Power reports.

Dig deeper: How VA Cash-Out Refinancing Works

Our Take: AmeriHome stands out as a top FHA lender, specializing in cash-out refinancing for these highly sought-after government loans.

Rating: 3.60

Explore Our Full AmeriHome Mortgage Review

Top Benefits:

• Get a “free instant rate quote” in just 60 seconds, no credit inquiry required — just provide your contact info!

• AmeriHome earned a stellar 5-star rating for online features, offering a plethora of calculators and a video library for your education.

• They accept alternative credit data, so if you don’t have a traditional credit history, you may still qualify using bank statements and assets.

Key Insights:

Learn more: How FHA Cash-Out Refinancing Operates

Our Take: Rocket Mortgage is the nation’s largest retail mortgage lender, known for its high customer satisfaction ratings and flexibility for borrowers with less-than-perfect credit.

Rating: 3.06

Explore Our Full Rocket Mortgage Review

Top Benefits:

• Qualify for a cash-out refinance even with a credit score as low as 580. For conventional loans, you’ll need a score of at least 620.

• Receive loan options in just seven minutes with no impact on your credit score.

• Their home equity calculator is a fantastic tool to assess whether a cash-out refinance is right for you.

Key Insights:

Dig deeper: Refinancing Options for Those with Bad Credit

Cash-out refinancing provides a way to leverage your home equity for various uses. From paying off high-interest debt to funding home renovations, the cash in your hands can unlock a world of possibilities.

While you’re getting that big check, it’s essential to remember that you will incur interest on the additional debt you’re taking on. It’s a balancing act, but the potential rewards can be worth it!

Learn more: How Cash-Out Refinancing Works

Consider exploring a second mortgage as an alternative. Home equity loans and lines of credit let you maintain your current mortgage while accessing your equity — leading to another monthly payment.

Home equity loans provide a lump sum, while HELOCs give you the flexibility to withdraw equity over time and pay interest only on what you use.

Explore and compare:

When you’re on the hunt for the best lender for your cash-out refinance, keep your eyes on the prize: that enticing check. However, it’s not just about the cash; it’s about the interest rates and fees that can impact your long-term financial health.

You might be amazed at how much variation exists in loan offers from different lenders. One might present a tempting low rate, only to hit you with hefty fees. The goal is to strike the right balance between a fair rate and manageable fees.

That’s the true power of comparison shopping for mortgage lenders. Getting preapproved allows you to stack offers side by side and see which lender delivers the best overall deal. While it may seem tedious, the long-term savings could be significant. You’ll still walk away with that coveted check in hand!

Learn more: How to Secure the Lowest Interest Rate on a Mortgage

We meticulously evaluated various mortgage lenders to compile our top picks. While some contenders didn’t quite make the cut, they still hold value in the wider lending landscape.

Banks have a unique advantage in cash-out refinancing since they often seek to deepen customer relationships. If you’re a current customer, you might enjoy fee discounts or better interest rates. It’s wise to explore multiple lenders, including banks, credit unions, and retail mortgage companies, to discover the best terms available.

Cash-out refinance mortgage rates fluctuate daily. Generally, these rates are slightly higher than standard refinance rates due to the perceived risk of tapping into your home equity.

It’s worth noting that cash-out refinancing is still a mortgage, which means regular credit parameters like debt-to-income ratios, credit scores, and payment histories play a role. You will need to have equity in your home — typically at least 20% is advisable.

The best mortgage lenders were selected through a thorough analysis of leading national lenders, taking into account factors like interest rates, fees, loan offerings, and available online resources.

A review of regulatory actions contributed to the scoring of lenders with any recent mortgage-related penalties.

Rest assured, ratings are determined solely by performance, not influenced by advertisers or sponsors.