Top Cash-Out Refinance Lenders in the Year 2025
A cash-out refinance can help you reduce higher-interest debt, fund a dream renovation, or cover another big expense. Here are our top picks for the best cash-out refinance lenders in 2025:
Top Cash-Out Refinance Lenders
| Lender | Credit Requirements | Our Score || --- | --- | --- || Chase | 620 for conventional loans, 680 for jumbo loans, 640 for FHA loans, 640 for VA loans | 4.9 || Bank of America | 620 for conventional loans | 4.8 || Better | 620 for conventional loans, 580 for FHA loans, 620 for VA loans | 4.8 || Navy Federal Credit Union | Undisclosed | 4.8 || PenFed Credit Union | 650 for conventional loans, 700 for jumbo loans, 620 for FHA loans | 4.8 || PNC Bank | 620 for conventional loans, 620 for jumbo loans, 620 for FHA loans, 640 for USDA loans | 4.8 || SoFi | 620 for conventional loans, 600 for FHA loans, 600 for VA loans | 4.8 |
Chase
Learn more * + Availability: All U.S. states+ Loans offered: Conventional, jumbo, FHA, VA, refinancing, and more+ Credit requirements: 620 for conventional loans; 640 for VA and FHA loans; 680 for jumbo loans+ Where to find: Branch locations and online
Pros
Chase
- Widely available to borrowers in all states, with over 4,700 branch locations
- Existing Chase customers might receive rate discounts
- $5,000 closing guarantee
620 for conventional loans, 680 for jumbo loans, 640 for FHA loans, 640 for VA loans
Cons
4.9
- Bank might not suit borrowers with unique credit or financial circumstances
- Limited branch availability
Bank of America
Bank of America
Learn more * + Availability: All U.S. states+ Loans offered: Conventional, jumbo, FHA, VA, refinancing, and more+ Credit requirements: 620 for conventional loans+ Where to find: Branch location or online
620 for conventional loans
Pros
4.8
- Offers grant programs for low- and moderate-income buyers
- Displays rates online
- Offers discounts for Preferred Rewards customers
Cons
Better
- Doesn't offer USDA loans
- Limited transparency around borrower requirements
620 for conventional loans, 580 for FHA loans, 620 for VA loans
Better
4.8
Learn more * + Availability: All U.S. states+ Loans offered: Conventional, FHA, VA, refinancing, and more+ Credit requirements: 580 for FHA loans; 620 for VA and conventional loans+ Where to find: Online
Pros
Navy Federal Credit Union
- Primarily online, offering real-time online rates, three-minute preapprovals, and hybrid closings
- One Day Mortgage with approval in 24 hours for eligible borrowers
- Price Guarantee matches or beats competitor offers
Undisclosed
Cons
4.8
- Branch locations available only in 10 states
- Doesn't offer USDA loans
Navy Federal Credit Union
PenFed Credit Union
Learn more * + Availability: All U.S. states+ Loans offered: Conventional, jumbo, VA, refinancing+ Credit requirements: Undisclosed+ Where to find: Branch location or online
650 for conventional loans, 700 for jumbo loans, 620 for FHA loans
Pros
4.8
- Allows up to two rate relocks
- Provides rate-match guarantee or pays $1,000
Cons
PNC Bank
- Membership is required to borrow
- Doesn't offer FHA or USDA loans
620 for conventional loans, 620 for jumbo loans, 620 for FHA loans, 640 for USDA loans
PenFed Credit Union
4.8
Learn more * + Availability: All U.S. states+ Loans offered: Conventional, jumbo, FHA, VA, refinancing, and more+ Credit requirements: 620 for FHA loans; 650 for conventional loans; 700 for jumbo loans+ Where to find: Branch location or online
Pros
SoFi
- Convenience of managing banking and mortgage with one provider
- Competitive rates
620 for conventional loans, 600 for FHA loans, 600 for VA loans
Cons
4.8
- Doesn't offer USDA loans
- No ability to customize rates online
- Higher minimum credit score requirements
PNC Bank
Learn more * + Availability: All U.S. states+ Loans offered: Conventional, jumbo, FHA, VA, USDA, refinancing, and more+ Credit requirements: 620 for FHA, conventional, and jumbo loans; 640 for USDA loans+ Where to find: Branch location or online
Pros
- Online and in-person options for application
- Loan application can be tracked online
- Wide availability with various loan options
Cons
- Higher credit minimum on FHA loans
- Limited mobile app functionality
- Lower-than-average J.D. Power rating for mortgage servicing
SoFi
Learn more * + Availability: All U.S. states except Hawaii (no refinances in New York)+ Loans offered: Conventional, jumbo, FHA, VA, refinancing, and more+ Credit requirements: 600 for VA and FHA loans; 620 for conventional loans+ Where to find: Online
Pros
- Close on time or receive up to $10,000 for additional costs
- Option for up to $9,500 rebate if you work with a SoFi partner real estate agent
Cons
- Doesn't offer USDA loans
- No branch locations (everything happens online or in the app) 💩
Cash-Out Refinancing Explained
Cash-out mortgage refinancing helps homeowners with substantial equity in their homes to replace high-interest debt, fund improvements, or cover major expenses by replacing their current mortgage with a new, larger loan that includes the borrowed equity. As with the new loan, homeowners will secure a new interest rate.
Keep in mind: Lenders typically require homeowners to retain 20% equity in their homes when doing a cash-out refinance.
Cash-Out Refinancing Pros and Cons
Pros
- Access to substantial funding for other financial goals
- Possibly lower interest rates compared to current loans if rates decrease
- Improved credit if high-interest debt consolidated
- Lower borrowing costs compared to personal loans or credit cards if a lower interest rate is secured
Cons
- Closing costs to pay
- Loss of some equity in property during closing, increasing overall debt load
- Foreclosure risk if unable to repay new loan amount
- Higher interest rates if rates have risen since the original mortgage 💩
Cash-out refinancing: What it is and how it works
- A cash-out refinance can be used not only to reduce higher-interest debt and fund home renovations, but also to invest in various areas such as health-and-wellness, fitness-and-exercise, finance, lifestyle, or home-and-garden, as it provides homeowners with substantial funding for other financial goals.
- For instance, the collected equity could be used to start a personal-finance blog, open a health club membership, or purchase equipment for a home garden.
- When opting for cash-out refinancing, it is crucial to consider the potential cons, such as closing costs, loss of equity, increased overall debt load, foreclosure risk if unable to repay the new loan amount, and higher interest rates if rates have risen since the original mortgage.
- Homeowners should carefully evaluate these factors, weighing the potential benefits against the risks, and make informed decisions regarding whether a cash-out refinance is the ideal choice for achieving their financial goals.
