Refinancing your mortgage can be a great way to lower your monthly payment, pay for a home improvement project, or change the terms of your loan to make it more manageable.
To help you find the best place to refinance your mortgage, NerdWallet assembled a list of lenders whose approach aims to simplify and speed up the process.
| Lender | Loan Types | Gov't Programs | Loan Amounts | Minimum Credit Score | Key Facts |
|---|---|---|---|---|---|
 |
30-year fixed 15-year fixed 20-year fixed 10-year fixed |
None | $150,000-$2,000,000 | 640 | No origination fees Average 763 credit score Average 41 days to close Average loan amounts of $118,000-$324,000 Available in 2 states (CA, WA) |
 |
30-year fixed 15-year fixed 10-year fixed 5/1 ARM |
VA FHA HARP |
$100,000 - $1,000,000 | 600 | Origination fees vary Average 700 credit score Average 40 days to close Available in all 50 states |
 |
30-year fixed 20-year fixed 15-year fixed ARM (10/1, 7/1, 5/1) |
None | $200,000 - $1,000,000 | 680 | Origination fees vary Aims to close in 26 days Average loan amount of $473,000 Available in 3 states (CA, OR, WA) |
 |
30-year fixed 15-year fixed ARM (10/1, 7/1, 5/1) Jumbo (fixed or ARM) |
VA FHA FHA Streamline HARP |
$40,000 - $3,000,000+ | 620 (580 for FHA) |
No origination fees Average 40 days to close Average loan amounts of $200,000-$250,000 Available in all 50 states |
 |
30-year fixed 25-year fixed 20-year fixed 15-year fixed 10-year fixed ARM (10/1, 7/1, 5/1, 3/1) Jumbo (fixed or ARM) |
VA FHA USDA |
No minimum or maximum | 620 (600 for FHA) |
Origination fees vary Average 30 days to close Available in all 50 states and Washington DC |
NerdWallet’s Online Mortgage Refinance Marketplace
The lenders on NerdWallet’s refinance marketplace are members of a growing group that’s changing the way homebuyers get and refinance mortgages. They’re cutting out middlemen, automating parts of the process and making it shorter and easier to understand. That means refinancing can be cheaper, faster and more transparent. Some have eliminated origination fees and many handle parts of the refinance — obtaining employment and pay records for instance — that you used to have to do yourself. You’ll still have to meet credit requirements and demonstrate that you can pay back your loan before these lenders will approve your refinance.
When should I consider a mortgage refinance?
When you refinance your mortgage, you pay off your existing home loan and replace it with a new one with new terms. The goal is usually to lower your monthly payment, pay off your loan sooner or, if you’ve built up some equity in your home, to get cash back to pay for a home improvement project. Whether a refinance can work for you and how much you can save depend on your credit score, your home’s market value and other factors.
A refinance can also be used to consolidate higher-interest debts, which can save you money on interest payments, or pay for a college education. However, it can be risky to finance short-term obligations with long-term debt, and prudent borrowers think carefully before using a refinance for those purposes.
How do I find the best mortgage refinance lender?
We’ve said it so many times, you can probably recite it with us: To get the best mortgage refinance rate, you’ve got to shop multiple lenders. It can save you thousands of dollars over the long run. That’s why we stand on this little green NerdWallet soap box and say it so often. It’s also why we’re compiling an objective resource you can consult.
This is where you’ll find just what kind of refinance loans a lender offers: 15- or 30-year, fixed or variable rate, FHA-backed loans and all the rest. Plus, you’ll find other essential information, like the minimum credit score preferred by each lender, whether the lender charges an origination fee and other key facts.
How do I get the best refinance rate?
First, it’s a good idea to run some numbers with our mortgage refinance calculator. That will give you an idea of how things might shake out for you. Then, take the following steps:
- Make sure your credit history is in good shape and error-free.
- Know your credit score so you’ll have realistic interest rate expectations.
- Shop multiple lenders within a two-week period to minimize the impact on your credit score.
- Consider contacting a local lender or two, to compare their rates with the results you find here.
Mortgage glossary
Fixed-Rate Mortgage: Fixed-rate mortgage loans have a set interest rate over the life of the loan, which can last 5, 10, 15, 20, 25, 30, 40 or even 50 years. The most common is the 30-year fixed rate mortgage. They’re good if you want to avoid the uncertainty of interest rate changes, and if you plan on staying in your home for at least seven years.
Adjustable-Rate Mortgage: ARM loans have an interest rate that’s fixed for an introductory period, after which they can fluctuate annually over the loan’s remaining lifespan. The initial interest rate, sometimes called the teaser rate, is lower than what you’ll find on fixed rate mortgages. ARM types include 3/1, 5/1, 7/1 and even 10/1. The first number is how long, in years, the teaser rate applies, the second number shows how often the rate can reset. So for a 5/1 ARM, the loan’s teaser rate is set for five years, and then the rate resets every year. An ARM might be right for you if you plan on moving before the introductory period ends, or if you think your income will increase.
Read more about fixed-rate mortgages and adjustable-rate mortgages
Conventional loan: Insured by private lenders, conventional mortgages adhere to dollar limits set by Fannie Mae and Freddie Mac, two government sponsored companies that provide money for the housing market. Conventional mortgages can be adjustable or fixed. Good credit scores and higher down payments are required.
Jumbo loan: Loans that exceed the dollar limit — usually $417,000 — set by Fannie Mae and Freddie Mac. You may need a jumbo loan if you’re buying a house in large cities with hot housing markets. They often come with higher interest rates, down payment, credit score and income requirements.
VA mortgage: Insured by the Department of Veterans Affairs and distributed by private lenders, such as banks or mortgage companies, VA loans are available only to retired or current members of the armed forces, and in some cases, service member spouses. There are no money down or private mortgage insurance requirements, though in many cases there will be a funding fee, which can be financed as part of your loan.
FHA loans: Federal Housing Administration loans are made by private lenders and insured by the government. The insurance protects lenders in case you default on your mortgage. They can be a good option if you’re a first-time homebuyer or have a lower credit score. Down payments can be as low as 3.5%. You’ll have to make an upfront mortgage insurance payment, as well as monthly premiums thereafter.
FHA Streamline Refinance: If you’ve built enough equity in your home and have an FHA loan, this refinance program can be a quicker way to lower your interest rate, often without an appraisal. It can be a good idea if you want to save money, but not if you want cash back.
USDA mortgage: The U.S. Department of Agriculture mortgage program is for homeowners in rural and suburban areas who fall under a certain income threshold. No money down and low interest rates are the norm.
HARP: The Home Affordable Refinance Program is a federal government program that helps homeowners refinance their mortgage at a lower rate. The median income of your county is taken into consideration. The program is good if you don’t have much equity built up in your home. This program expires December 31, 2016.
Interest-Only Mortgage: With this loan, you have the option of paying just the interest for a fixed term, after which you’ll make payments on both interest and principal. These are often taken out for more expensive homes. You’ll want to exercise caution though, because the payment will get higher once the interest-only period ends.
Cash-Out Refi: Cash-out refinancing allows you to take out a loan against your home equity, but not always at a lower interest rate. The original mortgage is refinanced with a larger loan, and you receive the difference in cash. Think carefully before embarking on this kind of refinance, you’re putting your house on the line. It’s best to use the extra cash for things that add value to your home. Don’t use a cash out refinance to buy a car or pay for a vacation.
More from NerdWallet
Get personalized refinance rates
Contact a mortgage refinance expert
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