Best Mortgage Refinance Lenders in 2021

Mortgage rates are extremely low, so if you are considering refinancing, be sure to take advantage of them and get the lowest rate and best deal possible. The bank rate made it easier for you to compare refinancing offers by examining dozens of mortgage lenders in several key areas. Based on those benchmarks, here’s our guide to the best mortgage refinance lenders in 2021.


To determine the best mortgage refinance lenders at this bad credit personal loans guaranteed approval direct lenders, Bankrate evaluated lenders based on several criteria, including cost (competitive refinance rates and low or no fees); timeliness (approval and closing times); the scope of refinancing offers; and testimonials from borrowers.

Best Mortgage Refinance Lenders

Wyndham Capital Mortgage

Wyndham Capital Mortgage, based in Charlotte, North Carolina, is a digital lender that has funded more than $ 18 billion in loans and served more than 60,000 borrowers. With some of the lowest refinance rates available, a lender is a competitive choice for homeowners looking to save.

Wyndham Capital Mortgage refinancing options include rate and term refinancing, in which you change the interest rate or the term of your mortgage, or both; cash refinancing, in which you cash in the equity in your home; FHA streamline refinancing; and VA rationalize refinancing (a refinancing loan with reduced interest rates, or IRRRL). The lender also offers a simplified refinance option that allows borrowers to refinance at a lower rate without mortgage insurance and without a minimum credit requirement.

Plus, the lender doesn’t charge fees or force you to pay any hidden fees, and facilitates quick automated pre-approvals so you can quickly compare their refi offers with others, as well as e-closings. fast which reduce the closing time.

However, Wyndham Capital Mortgage does not have physical branches, so you cannot apply for refinancing in person. is a digital lender known for a 100% online process where you can access 24/7 rates, resources and loan pre-approval. Lender has been named one Bankrate best mortgage lenders overall and best online mortgage lenders in 2021.’s refinancing options include rate and term refinancing and cash refinancing on conventional and FHA loans. Like the other lenders on this list, this one also has some of the lowest refinance rates on the market.

What also sets apart is that you won’t pay an originator fee when you refinance, and if you provide a better offer from another lender, the lender will beat it or pay you $ 100. . With its fast platform and technology, you can also get a quote in seconds, a pre-approval letter in three minutes, and a close in under three weeks.

The disadvantages of include the fact that there are no physical locations – the lending process is done entirely digitally – and the lender does not provide loans in all states.


NBKC Bank is a physical and online financial institution that offers a variety of loans and services across the country. On the mortgage side, the bank’s refinancing offerings include rate and term refinancing, cash refinancing, streamlined FHA refinancing, and streamlined VA refinancing (IRRRL), as well as a special refinancing option for some. borrowers, all at competitive rates.

What also makes NBKC Bank worth considering is its reputation for exceptional customer service and quick response times from loan officers. Customer reviews are also overwhelmingly positive.

Note that you will need to pay a lender fee to refinance with NBKC Bank, although if you are a Costco member you may be eligible for a discount. There are also only four branches that you can visit in person, all located in the Kansas City area.

Bank of America

There may be advantages to refinancing with Bank of America, the second largest bank in the United States, ranked # 2 by JD Power for mortgage origination customer satisfaction in 2020. Mortgage Refinance Offers from the bank include rate and term refinancing, liquidity – on FHA and VA refinancing and refinancing.

You could save significantly on refinancing with Bank of America, which has some of the lowest refinance rates. However, you may be able to find an even lower rate or better deal elsewhere, so be sure to shop around.

Through Bank of America Online, you can pre-qualify and apply for refinancing easily and submit documents digitally. You may also be eligible for automatic payment or other discounts on creation fees if you are an existing customer. One downside: Bank of America’s lender fees aren’t made public, so you’ll need to see a loan officer to get this information.

Costco Mortgage

Costco isn’t just a place to buy groceries, furniture, or tires. If you’re a Costco member, you can also purchase some of the lowest and most competitive refinancing deals in the Costco mortgage market, with options like rate and term refinancing and withdrawal refinancing.

However, the refinancing offers are not funded or underwritten by Costco; the retailer simply allows you to compare the rates of partner lenders, with special benefits because you are a member.

If you are an executive member of Costco, the lender fees on a refi in the mortgage market will not exceed $ 250. Likewise, if you are a Gold Star member, you will pay $ 550 or less. Every loan offer you receive also provides a transparent estimate of fees and, according to Costco, participating lenders are funding loans faster than the industry average.

The downside, of course: you have to be a Costco member, which comes at its own cost.

What types of mortgage refinancing are there?

In general, there are two main types of mortgage refinancing:

  1. Rate and term refinancing, which involves replacing your current mortgage with a new loan with a different interest rate, a different loan term, or both
  2. Cash-out refinancing, which allows you to tap into your home equity (in the form of a lump sum remitted at closing) in addition to lowering your rate

When is the best time to refinance your mortgage?

It can be a good time to consider refinancing your mortgage when interest rates drop below where they were when you got your current loan – ideally one-half to three-quarters of a percentage point lower.

It may also be a good idea to refinance if your credit has improved and you can now get a new loan at a lower interest rate.

Because refinancing involves closing costs, you also need to consider your break-even point – when you can expect to recoup those costs based on what you’ll save on your monthly payment. If you don’t plan on staying at home long enough to break even, refinancing may not be the best solution if saving money is your goal.

Ultimately, the right time to refinance your mortgage is the one that is most profitable for you. This will depend on several factors, including:

Why Should You Refinance Your Mortgage?

There is a lot of good reasons to consider refinancing your mortgage, including the ability to:

  • Take advantage of a lower interest rate, which can lower your monthly mortgage payments and lower interest paid over the life of your loan
  • Shorten the term of your loan so you can pay it off sooner and pay less interest overall, or extend the term of your loan to reduce your monthly payments
  • Replace a variable rate mortgage with a fixed rate mortgage
  • Cash in your home equity to finance home improvements, consolidate debt, fund education, or pay any other expense
  • Remove mortgage insurance if your house has increased in value

What are the conditions for refinancing your mortgage?

There are a few conditions to qualify for mortgage refinance.

  • Credit score – In order to refinance, you will need to meet credit score requirements just like you did with your first mortgage. The exceptions are FHA Streamlining Refinancing and VA Streamlining Refinancing (IRRRL), which do not require a credit check.
  • Debt to Income Ratio (DTI) – Some lenders look for a debt-to-income ratio (DTI) of 50 percent or less, and many prefer no more than 36 percent. The DTI ratio is your total monthly debt divided by your gross monthly income.
  • Equity – You should have a amount of equity in your home in order to refinance. Most lenders prefer that you have at least 20 percent.
  • seasoning – For most lenders, you will need to meet a Seasoning requirement, well, that is a period of time that you have to wait before you can refinance. This is usually a minimum of six months since you last refinanced or purchased your home.

Should You Refinance With Your Current Lender?

You don’t have to refinance your mortgage with your current lender, and it makes sense to research deals. However, there may be advantages to sticking with your current lender. First, your lender might be willing to match or beat a lower rate quoted by another lender. Second, it’s often easier to refinance with your existing lender because the lender already has a lot of your financial information. Third, your lender can reduce or waive certain refinancing fees to keep you as a customer.

How to refinance your mortgage

There are several steps to refinancing your mortgage. Here’s a rundown of what to expect:

  1. Determine your goals. What will refinancing help you achieve? Knowing the equity in your property is important to better define your goals.
  2. Do the math. Calculate your breakeven point for closing costs and determine if you will be staying home long enough to recoup them. This is a good time to also decide if you will pay the closing costs up front or add them to the new loan.
  3. Check your credit report and work for improve your score or correct the errors, if necessary.
  4. Compare the prices and get refinance rate quotes from several lenders.
  5. Apply. When you find the best deal, it’s time to fill out a request. Make sure you have all of your financial information prepared and be prepared to provide it when you apply and throughout the underwriting process.
  6. Prepare for a home appraisal – your lender will probably require one.
  7. Raise the funds you will need to cover the closing costs if you plan to pay them on the closing day.

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