Best cash-out refinance lenders of 2024
Images by Getty Images; Illustration by Hunter Newton/Bankrate
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
| Lender | Credit requirements | Bankrate Score |
|---|---|---|
| Better | 620 for conventional loans, 580 for FHA loans | 4.6 |
| Old National Bank | 620 for conventional loans, 640 for FHA loans, 680 for VA loans | 4.6 |
| U.S. Bank | 620 for conventional loans, 740 for jumbo loans | 4.8 |
| PenFed Credit Union | 650 for conventional loans, 700 for jumbo loans, 620 for FHA loans | 4.7 |
| Rocket Mortgage | 620 for conventional loans, 680 for jumbo loans, 580 for FHA and VA loans | 4.6 |
| Citizens Bank | 620 for conventional loans | 4.5 |
| PNC Bank | 620 for conventional, jumbo and FHA loans, 640 for USDA loans | 4.5 |
Better
Learn more
in our Bankrate review
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- Availability: All U.S. states
- Loans offered: Conventional, FHA, VA
- Credit requirements: 620 for conventional loans, 580 for FHA loans
- Where to find: Online
Old National Bank
Learn more
in our Bankrate review
-
- 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
U.S. Bank
Learn more
in our Bankrate review
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- 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
PenFed Credit Union
Learn more
in our Bankrate review
-
- 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
Rocket Mortgage
Learn more
in our Bankrate review
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- 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
Citizens Bank
Learn more
in our Bankrate review
-
- Availability: All U.S. states
- Loans offered: Conventional, jumbo, FHA, VA
- Credit requirements: 620 for conventional loans
- Where to find: Branch locations and online
PNC Bank
Learn more
in our Bankrate review
-
- 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
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
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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)
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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.
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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.
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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.
Jeff Ostrowski covers mortgages and the housing market. Before joining Bankrate in 2020, he spent more than 20 years writing about real estate, business, the economy and politics.
