We want to help you make more informed decisions. Some links on this page — clearly marked — may take you to a partner website and may result in us earning a referral commission. For more information, see How We Make Money.
Record-high home values are bad news for homebuyers trying to enter the market — but great for existing homeowners, who got an average $57,000 equity raise in 2021 without lifting a finger.
That’s a home equity increase of 31.1%, according to the most recent Homeowner Equity Insights report by housing data firm CoreLogic
More equity, coupled with today’s low mortgage rates, creates access to cheaper-than-usual borrowed funds through a cash-out refinance. A cash-out refinance is when you take on a new mortgage higher than what your balance is, and take a check for the difference. The new loan is refinanced with a new interest rate. Cash-out refinances are gaining in popularity — increasing from 37% to 49% of total refinances in the first half of 2021, according to property data analytics firm Black Knight.
A cash-out refinance can be a useful financial tool to consolidate high interest debt or fund a home improvement project.
To make sure you’re getting the best deal possible, you’ll want to choose the best mortgage refinance lender for your specific situation. Two similarly qualified refinance candidates can see a difference of 0.5% between mortgage rates with different lenders, according to the Consumer Financial Protections Bureau (CFPB) — a difference that can add up thousands of dollars over the life of a loan. That’s why it’s imperative you shop and compare a few lenders before committing.
Outside of getting the best cash-out refinance rate, it’s equally important to find a lender with transparent pricing, online conveniences, accessibility to most borrowers, an extensive product offering, and a reputable history with customer satisfaction.
To help you navigate the process, NextAdvisor reviewed 36 different refinance lenders and scored each one on categories including transparency, accessibility, online convenience, loan product variety, and customer satisfaction. We then narrowed down the list to the following list of the best cash-out refinance lenders of 2021.
As with all of our mortgage lender reviews, our analysis is not influenced by any partnerships or advertising relationships. For more information about our scoring methodology, click here.
Best Cash-Out Refinance Lenders of 2021
- Rocket Mortgage, 4.6/5 Stars
- Truist Mortgage Lender, 4.5/5 Stars
- Sebonic Financial, 4.5/5 Stars
- Pennymac Mortgage, 4.5/5 Stars
- Better Mortgages, 4.4/5 Stars
- AimLoan Mortgages, 4.4/5 Stars
- Navy Federal Credit …….