Best Mortgage Refinance Lenders of July 2024

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You might have different priorities when choosing a refinance lender than when you first got your mortgage. For example, a fast closing probably won't matter to you as much as getting the lowest rate possible.

As you compare mortgage refinance lenders, be sure to consider your overall costs, including closing costs, in addition to your rate. 

Best Mortgage Refinance Lenders

• Rocket Mortgage: Best overall
• Ally Home: Best for low costs
• Pentagon Federal Credit Union Mortgage: Best for veterans
• Fairway Independent Mortgage Corporation: Best for digital closing
• U.S. Bank: Best for existing customers
• Carrington Mortgage Services: Best for low credit scores
• Chase: Best big bank

Compare the Top Mortgage Refinance Lenders

These are the best mortgage refinance lenders as chosen by Business Insider editors in 2024.

Best Overall: Rocket Mortgage

Rocket Mortgage is our top choice thanks to its easy-to-use online application and its strong track record in providing great customer service. It's ranked as the No. 2 lender for customer satisfaction in J.D. Power's 2023 Mortgage Origination Satisfaction Study. Refinancers will like the lender's "YOURgage" loans, which let you choose any term length between eight and 29 years. 

What to look out for: Its loan options are relatively limited, and it doesn't have any in-person branches. Rocket's rates and fees are around average compared to other lenders, according to Home Mortgage Disclosure Act data.

Rocket Mortgage Review

Best for Low Costs: Ally Bank

Ally's average rates and fees are significantly lower than other lenders, according to HMDA data. If you're looking to snag a lower rate, it might be worth getting a quote from this lender. It also ranks high in customer satisfaction based on online customer reviews.

What to look out for: Ally only offers conforming and jumbo mortgages, so if you're looking to get a different type of mortgage, you'll need to search elsewhere.

Ally Mortgage Review

Best for Veterans: Pentagon Federal Credit Union

A lot of lenders offer VA loans, including many of the lenders on this list. But for refinancing, we like PenFed, which has low average rates and fees, according to HMDA data. Plus, if you're getting a VA streamline refinance (also known as an interest rate reduction refinance loan), PenFed will cover your closing costs (including the VA funding fee).

What to look out for: You'll need to become a member to get a mortgage with PenFed. Fortunately, becoming a member is fairly easy. You'll just need to fill out a form and open a savings account with a $5 minimum deposit.

PenFed Mortgage Review

Best for Digital Closing: Fairway Independent Mortgage Corporation

Fairway Independent Mortgage Corporation is a good refinance lender overall, and offers hybrid and remote closing options for a more streamlined closing experience. It also earned the top spot in customer satisfaction in J.D. Power's 2023 origination study.

Fairway Independent lets borrowers have a hybrid or fully remote closing. With a hybrid closing, you can sign most of your documents digitally, and have a quicker in-person closing appointment. In some states, the entire process can be completed digitally.

What to look out for: Our review of the latest HMDA data found that Fairway's rates are slightly higher than average.

Fairway Independent Mortgage Corporation Review

Best for Existing Customers: U.S. Bank

U.S. Bank is a good choice for those who already have mortgages or accounts with this bank. Its existing customer discount on its mortgages is better than similar offers from other lenders.

U.S. Bank's average rates are on the low end, according to HMDA data. Its fees are also relatively low.

If you already have a mortgage or account with U.S. Bank, you may be able to get up to $1,000 off your closing costs if you refinance through this lender.

What to look out for: U.S. Bank ranked average in J.D. Power's 2023 satisfaction study.

U.S. Bank Mortgage Review

Best for Low Credit Scores: Carrington Mortgage Services

Carrington Mortgage Services is an affordable option for those with rocky credit histories and credit scores as low as 500.

Carrington offers several mortgages that have flexible credit guidelines, including its Carrington Flexible Advantage Refinance mortgage, which allows credit scores as low as 550 and recent negative credit events like bankruptcy.

What to look out for: Carrington doesn't lend in Massachusetts or North Dakota. It also doesn't show its rates online. According to HMDA data, this lender's rates and fees are around average.

Carrington has an NR, or "no rating" from the BBB because the lender is in the process of responding to previously closed complaints. Additionally, in November 2022, the Consumer Financial Protection Bureau ordered Carrington to pay $5.25 million in fines for supposedly violating borrowers' CARES Act rights. The CFPB claims that the lender misled borrowers seeking CARES Act forbearance and denied them key protections provided by the pandemic-era law.

Carrington Mortgage Services Review

Best Big Bank: Chase

Chase is one of our favorite big bank mortgage lenders, and it's a strong choice for refinancing. HMDA data shows that its average rates and fees are relatively low compared to other lenders.

Chase also offers advanced tools to see customized rates and payments online, making it easy to compare multiple mortgage options and find the one that's right for you.

Chase ranked slightly above average in J.D. Power's 2023 origination satisfaction study.

What to look out for: Chase's mortgage offerings are relatively basic.

Chase Mortgage Review

Why There's No Single 'Best' Refinance Company

The lenders on this list are affordable and have offerings that should meet most borrowers' needs, but ultimately it comes down to what rate you're offered and whether a given lender suits your needs. 

Your Goals Matter

There are a few different reasons to refinance your mortgage. Think about what you want to achieve with your refinance, and look for lenders that can meet those needs.

Are you looking to do a cash-out refinance? Do you want to change the type of mortgage you have? Is getting the lowest rate possible more important than having a good customer service experience? Make sure the lenders you're considering offer the type of refinance and level of service you want. 

Refinance Rates Vary By Lender and Borrower

Mortgage rates can vary a lot between lenders, and your own financial situation will have a big impact on the range of rates available to you. You might be able to get a low rate with a specific lender, while another borrower can get a better rate elsewhere.

The best way to know what rate you'll get with a lender is to apply for a mortgage. Experts typically recommend applying with at least three different lenders to be able to compare rates accurately. 

Fees Impact Total Cost

Though borrowers often start the refinancing process with the goal of getting the lowest rate possible, it's important to consider your overall costs. Some lenders offer low rates but charge a lot in fees or add discount points to lower the rate (which you'll pay for at closing). 

Key Questions to Ask Yourself Before You Start Shopping

Why Am I Refinancing?

Refinancing can enable you to tap into your home's equity, lower your rate, get rid of mortgage insurance, extend or shorten your term, or change the type of mortgage you have.

How's My Credit?

You'll need to meet the lender's credit requirements to qualify for a mortgage refinance, and having a great credit score can help you snag a better rate.

The exception to this is if you're getting a streamline refinance, which is available on government-backed mortgages. Some streamline transactions don't require the borrower to show a credit score. 

Is Refinancing Worth It Right Now?

You'll need to do some math to figure out if it makes sense financially to refinance. Because refinancing isn't free, you'll want to weigh the costs against the benefits.

For example, if you're refinancing to lower your mortgage payment, calculate how long it will take you to recoup your closing costs. If you spent $2,000 to refinance and lowered your monthly payment by $200, it would take 10 months of payments to break even. 

An online refinance calculator can help you figure out if refinancing is worth it. 

How to Find the Best Mortgage Refinance Company for You

Start With Where You Bank

You don't have to get a mortgage with your current lender or bank, but you might find that it can offer you certain benefits or discounts as a returning customer. 

Big Banks

Big banks are well-established financial institutions that offer many other services besides mortgage lending. Although they sometimes have a reputation for not offering as much personalized support as smaller lenders, many of the big bank lenders we've reviewed rank high in customer satisfaction.

Online Lenders

Nonbank mortgage lenders that operate mostly online are a popular choice with tech-savvy borrowers. These lenders may offer lower rates since they don't have the same operational costs as lenders with physical footprints, but this isn't always the case.

Local Lenders

Smaller, local lenders are often able to offer better customer service than lenders that are working with a large number of borrowers. But you should compare their rates with some larger lenders to make sure they're competitive. 

Mortgage Brokers

A mortgage broker will do all the legwork of getting quotes from different mortgage lenders for you. If you want to be able to easily compare many different loan options, you might prefer working with a broker.

Best Mortgage Refinance Lenders FAQs

Why You Should Trust Us: Experts' Advice on Choosing a Mortgage Refinance Lender

Insider

To help you learn more about refinancing and lenders, four experts weighed in:

• Anthony Park, author of "How to Buy Your Perfect First Home"
• Lauryn Williams, certified financial planner, founder of Worth Winning Financial Planning
• Julie Aragon, mortgage broker, founder of Aragon Lending Team
• Molly Grace, mortgage reporter at Business Insider

We consulted mortgage and financial experts to inform these picks and provide their insights about mortgage refinance lenders. Here's what they had to say about mortgage refinancing. (Some text may be lightly edited for clarity.)

How can someone know whether it's a good time to refinance?

Julie Aragon, Aragon Lending Team:

"The monthly savings and the cost for the refinance. When you have those two things, you can determine the break-even point. Also, how long they intend to stay in the house. If they know they're going to sell next year, it probably doesn't make sense to refinance."

Lauryn Williams, CFP:

"A lot of times people don't realize refinancing comes with some additional costs. There's those closing costs, title costs, et cetera, that are tied into the overall fees. Simply getting a lower interest rate doesn't mean that you're saving money, is the biggest factor that a lot of people are not aware of."

What factors should someone take into consideration when choosing a mortgage refinance lender?

Anthony Park, author:

"I feel like with a refinance, you're going based on numbers a lot more than on your original mortgage. Probably because the mortgage feels like more of a weighty transaction, whereas with refinancing, you're kind of an old hand at it at this point. I think the numbers matter a lot more for a refinance."

Molly Grace, Business Insider

"You don't have the same time crunch during a refinance that you do when you're purchasing, so take your time to really evaluate the offers you're shown and don't rush into anything. Lenders are pros at making refinancing sound really attractive — even if it's not necessarily the best long-term financial move for you. Remember that their job is to sell you something, and your job is to make sure you're making the best decisions for your finances."

When is it a good idea to get a cash-out refinance?

Julie Aragon, Aragon Lending Team:

"Investing the money into the home I think is always a good idea, as long as the math makes sense. Also paying off high-interest credit card debt. We have some clients, when we look at all of their debts, some are at 19% or 20%. By paying off all this crap, they'll save $1,500 or $2,000 a month."

Lauryn Williams, CFP:

"I think it's a tough situation, because sometimes with cash-out refi is, you're thinking of things like credit card debt. This is the biggest one I hear from clients: I can get rid of this 23% interest that I have on my credit card debt, and I can put it in my 2% mortgage. Well, you just took something that was not tied to any collateral. They can't take your home away if you don't pay your credit card debt. So something that previously couldn't result in my home being in a way now can add to the stress of my home being taken away should I not be able to pay my mortgage."

Methodology: How Did We Choose the Best Mortgage Refinance Lenders?

To choose the top mortgage refinance lenders of July 2024, we looked at four main factors:

• Customer satisfaction. If the mortgage lender appeared in the J.D. Power 2023 Mortgage Origination Satisfaction Study, we looked at its ranking. We also looked at online customer reviews.
• Ethics. Almost all of our top picks received an A+ from the Better Business Bureau, which measures companies' trustworthiness. We also researched and considered any scandals in the past three years.
• Loan types. Does a lender offer several types of loan refinances to suit customers' needs, including conventional loans, government-backed loans, and cash-out refinances?
• Affordability. We looked at lenders' minimum required credit scores. We also checked whether the lenders offer streamline refinances for borrowers refinancing from a government-backed mortgage into the same type of mortgage, which can be more affordable for borrowers with less-than-perfect financial profiles. Finally, we looked at whether they have any flexible credit guidelines. This could include allowing borrowers to have recent negative events on their credit reports, or accepting non-traditional credit, like utility bills and rent payments, in lieu of a traditional credit score.

See our full ratings methodology for mortgage lenders »

Molly Grace

Mortgage Reporter

Molly Grace is a mortgage reporter for Business Insider with over six years of experience writing about mortgages and homeownership. ExperienceIn addition to her daily mortgage rate coverage, Molly also writes mortgage lender reviews and educational articles on homebuying and analyzes data and economic trends to give readers actionable and up-to-date information about the housing market.She also tracks affordable mortgage and down payment assistance programs offered throughout the country to keep her readers informed of homebuyer programs available to them. Before Business Insider, Molly was a blog writer for Rocket Companies and helped to create Rocket Mortgage’s Shorty Award-winning podcast Home. Made.Molly is passionate about covering personal finance topics with empathy. Her goal is to make homebuying knowledge more accessible, especially for groups that may think homeownership is out of reach. ExpertiseMolly is an expert in the following topics:

• Mortgages and mortgage lenders
• Home equity
• The housing market
• The economy and the forces that impact mortgage rates
• Budgeting and saving
• Credit
• Insurance
• Retirement savings

EducationMolly earned a bachelor's degree in journalism from Indiana University. She is based in Michigan and has a dog and two cats. 

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Elias Shaya

Compliance Associate

Elias Shaya is a Compliance Associate on the Personal Finance Insider team based in New York City, which ensures content accuracy and editorial independence so readers are always getting up-to-date and objective financial advice.The team also works to minimize risk for partners by ensuring language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team. Elias is the point person for the loans sub-vertical and works with the editorial team to ensure that all rates and information for personal and student loans are up-to-date and accurate.He joined Insider in February 2022 as a fellow on the compliance team.

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