Best cash-out refinance lenders of 2024

A cash-out refinance can help you lower higher-interest debt, fund a home renovation, pay for college or make progress toward any other financial goal. Here are our picks for the best cash-out refinance lenders in 2024.

Best cash-out  refinance lenders

Better

Learn morein our Bankrate review

• Lender details

  • Availability: All U.S. states

  • Loans offered: Conventional, FHA, VA

  • Credit requirements: 620 for conventional loans, 580 for FHA loans

  • Where to find: Online

• Pros and cons

  Pros

  • Completely digital process, with daily online rates, three-minute preapprovals and hybrid closings

  • No fees

  • Price Guarantee matches or beats competitor offers

  Cons

  • No branch locations

  • No home equity loans or USDA loans

Old National Bank

Learn morein our Bankrate review

• Lender details

  • Availability: All U.S. states

  • Loans offered: Conventional, jumbo, FHA, VA, USDA

  • Credit requirements: 620 for conventional loans, 640 for FHA loans, 680 for VA loans

  • Where to find: Branch locations and online

• Pros and cons

  Pros

  • Branches plus online banking

  • Special loan programs for first responders, professors and physicians

  Cons

  • Branch locations limited to five states

U.S. Bank

Learn morein our Bankrate review

• Lender details

  • Availability: All U.S. states

  • Loans offered: Conventional, jumbo, FHA, VA, USDA

  • Credit requirements: 620 for conventional loans, 740 for jumbo loans

  • Where to find: Branch locations and online

• Pros and cons

  Pros

  • Discounts for banking customers

  Cons

  • Requires a higher credit score to qualify

  • Refinance timeline can be lengthy

PenFed Credit Union

Learn morein our Bankrate review

• Lender details

  • Availability: All U.S. states

  • Loans offered: Conventional, jumbo, FHA, VA

  • Credit requirements: 650 for conventional loans, 700 for jumbo loans, 620 for FHA loans

  • Where to find: Branch locations and online

• Pros and cons

  Pros

  • No lender fees

  • Offers lender credits up to $2,500

  Cons

  • Higher minimum credit score requirements

  • No USDA loans

Rocket Mortgage

Learn morein our Bankrate review

• Lender details

  • Availability: All U.S. states

  • Loans offered: Conventional, jumbo, FHA, VA

  • Credit requirements: 620 for conventional loans, 680 for jumbo loans, 580 for FHA and VA loans

  • Where to find: Online

• Pros and cons

  Pros

  • Superior customer service, including chat and screen-sharing

  Cons

  • No branch locations

  • No USDA loans

Citizens Bank

Learn morein our Bankrate review

• Lender details

  • Availability: All U.S. states

  • Loans offered: Conventional, jumbo, FHA, VA

  • Credit requirements: 620 for conventional loans

  • Where to find: Branch locations and online

• Pros and cons

  Pros

  • Online and in-person options to apply

  • Application can be tracked online

  Cons

  • Limited mobile app functionality

PNC Bank

Learn morein our Bankrate review

• Lender details

  • Availability: All U.S. states

  • Loans offered: Conventional, jumbo, FHA, VA, USDA

  • Credit requirements: 620 for conventional, jumbo and FHA loans, 640 for USDA loans

  • Where to find: Branch locations and online

• Pros and cons

  Pros

  • Online and in-person options to apply

  • Application can be tracked online

  Cons

  • Limited mobile app functionality

How to choose the best cash-out refinance lender for you

While the best mortgage lender ultimately depends on individual circumstances and what feels “right” to you, it’s helpful to narrow down your options. Here are some tips:

• Set your priorities. Do you want to talk to a loan officer in person? Do you need a faster closing? Want to apply for and track your refinance status through an app? Consider these and other questions as you come up with your short list of lenders.

• Get prequalified. If you’re not sure whether you’d qualify for refinancing, get prequalified first. This can help you understand how much a lender might allow you to cash out based on some preliminary financial information.

• Consider your original lender. You don’t have to refinance with the same lender you initially obtained your mortgage from, but it’s worth exploring, especially if the lender offers discounts or other incentives for repeat borrowers.

Learn more:Compare cash-out refinance rates

Frequently asked questions about cash-out refinancing

• What are the requirements for a cash-out refinance?

  To be eligible for a cash-out refinance, you typically need to:

  • Have a minimum credit score of 620

  • Have a debt-to-income (DTI) ratio below 50 percent

  • Maintain a minimum 20 percent equity in your home following the cash-out (depending on loan type)

• How much cash can I take out of my home?

  How much you can cash out on your home varies, and most lenders want to see you maintain at least 20 percent equity after the refinance. For example, let’s say your home is currently valued at $200,000, and you have $120,000 left to pay on your mortgage. With that much equity ($80,000, or 40 percent), you might be able to refinance your loan to a new one with a higher balance and take cash out, so long as you retain at least 20 percent equity when all is said and done.

• What’s the difference between a cash-out refinance and a HELOC?

  A cash-out refinance isn’t the only way to tap your home’s equity; you can also pursue a home equity line of credit (HELOC).
  
  A HELOC isn’t a refinance at all — your first mortgage remains intact — but is more akin to a big credit card, establishing a revolving source of funds that you can tap, repay and then borrow again. It’s an additional debt, on which you pay interest at a variable rate.
  
  The advantages of a HELOC are that you’re only responsible for paying what you use, you can access the funds at any time and you won’t incur interest on untapped funds. However, HELOCs come with variable interest rates, which means they can change, and they could be higher than what you’d get with a traditional cash-out refinance. See Bankrate’s home equity loan or HELOC vs cash-out mortgage refinance page.

• Methodology

  To determine the best cash-out refinance lenders, Bankrate periodically evaluates more than 80 lenders for factors relating to affordability, availability and borrower experience, assigning each a Bankrate Score out of five stars. The best cash-out refinance lenders generally have a Bankrate Score of 4.5 stars or higher. Learn more about our methodology.