Best cash-out refinance lenders of 2025

A cash-out refinance can help you reduce 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 2025.

Best cash-out  refinance lenders

Chase

Learn more in our Bankrate review

• Lender details

  • 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 and cons

  

  Pros

  • Available to borrowers in all states, with 4,700 branch locations
  • Existing Chase customers might receive rate discount
  • $5,000 closing guarantee

  

  Cons

  • Bank might not be a fit for borrowers with unique credit or financial circumstances
  • Branches not located in all states

Bank of America

Learn more in our Bankrate review

• Lender details

  • 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

• Pros and cons

  

  Pros

  • Offers grant programs to help low- and moderate-income buyers
  • Displays rates online
  • Awards discounts for Preferred Rewards customers

  

  Cons

  • USDA loans not available
  • Limited transparency around borrower requirements

Better

Learn more in our Bankrate review

• Lender details

  • 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 and cons

  

  Pros

  • Mostly online, with 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

  

  Cons

  • Branch locations in just 10 states
  • No USDA loans

Navy Federal Credit Union

Learn more in our Bankrate review

• Lender details

  • Availability: All U.S. states
  • Loans offered: Conventional, jumbo, VA, refinancing
  • Credit requirements: Undisclosed
  • Where to find: Branch location or online

• Pros and cons

  

  Pros

  • Allows up to two rate relocks
  • Provides rate-match guarantee or pays $1,000

  

  Cons

  • Membership is required to borrow
  • No FHA or USDA loans

PenFed Credit Union

Learn more in our Bankrate review

• Lender details

  • 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 and cons

  

  Pros

  • Convenience of managing banking and mortgage with one provider
  • Competitive rates

  

  Cons

  • No USDA loans
  • No ability to customize rates online
  • Higher minimum credit score requirements

PNC Bank

Learn more in our Bankrate review

• Lender details

  • 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 and cons

  

  Pros

  • Online and in-person options to apply
  • Application can be tracked online
  • Wide availability with many loan options

  

  Cons

  • Higher credit minimum on FHA loans
  • Limited mobile app functionality
  • Below-average J.D. Power rating for mortgage servicing

SoFi

Learn more in our Bankrate review

• Lender details

  • 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 and cons

  

  Pros

  • Close on time or receive up to $10,000 to cover 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)

How does cash-out refinancing work?

Cash-out mortgage refinancing is an option for homeowners who have built significant equity in their homes to replace high-interest debt, make home improvements or front another large expense. It works by replacing your current mortgage with a new, larger loan whose balance includes the money you took out of your home equity. With your new loan, you’ll get a new interest rate.

Pros and cons of cash-out refinancing

Pros

• Access to a large sum to put toward other financial goals
• Might get you a lower interest rate than current loan if rates have dipped
• Potential to improve credit if using funds to consolidate high-interest debt
• Lower borrowing costs compared to a personal loan or credit card if you get a lower interest rate

Cons

• Need to pay closing costs
• Loss of existing equity in the property at closing, increasing overall debt load
• Foreclosure risk if you can’t repay the new loan amount
• Potential for a higher interest rate than your current mortgage if rates have increased

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 mortgage refinance lenders, Bankrate periodically evaluates more than 75 lenders for factors relating to affordability, availability and borrower experience, assigning each a Bankrate Score out of five stars. The best mortgage refinance lenders generally have a Bankrate Score of 4.8 stars or higher. Learn more about our methodology.