With the shocking increase in interest rates, you may want to consider a rate and term refinance for your mortgage.
After mortgage rates plummeted to historically low levels last month, we’re now witnessing a rapid increase, as recorded by Freddie Mac. The uncertain economy and the volatile rates have prompted households to consider refinancing.
Mortgage refinancing is simply renegotiating a new contract while still living in your home. You can agree with the lender of a longer term with a lower rate or use some of the equity you’ve paid for your house to cater to emerging issues.
Well, that sounds easy, but you may incur penalties, additional costs or need to meet set standards to qualify for a refinancing plan. So, the endeavor may be a smart financial move when done diligently, but it can add more cost if you don’t do your homework.
The Consumer Financial Protection Bureau (CFPB) noted that a candidate is likely to get varying rates depending on their choice of lenders. That’s why you need to choose mortgage lenders wisely.
It doesn’t all end at the rate; you also need a refinance lender who’s accessible, has a good reputation, extensive product offerings, and transparent pricing. These and other considerations make deciding the best from the myriad of mortgage refinance lenders a hassle.
To help expedite the process, we’ve narrowed the list to 10 of the best mortgage refinance lenders available.
Best Mortgage Refinance Companies of 2022
- Rocket Mortgage
Formerly known as Quicken Loans, the Rocket Companies subsidiary operates in all states offering government-guaranteed, jumbo, and conventional loans. Rocket Mortgage will consider your request only if you have over 580 credit score for FHA loans or 620 for conventional loans.
- Nationwide Home Loans
Nationwide Home Loans only operates in 8 states; Washington, Montana, California, Texas, Oklahoma, Idaho, North Dakota, and Colorado. The lender bases the prices on the debt-to-income ratio (DTI), loan-to-value, credit, and interest, which means that if you have a high credit score, you could qualify for a low-interest rate. The minimum credit score requirement for Nationwide Home Loans is 580, but if yours is below that, the lender will help you improve and qualify.
- AmeriSave Mortgage
AmeriSave is adored for its robust customer service. Besides, the down payment falls to a 3% low for first-time buyers, and if you wish to put it over 20% you won’t require insurance. AmeriSave grants FHA loans if you have over 580 credit scores and have no plans to change your career throughout the loan process.
LenderFi is our best selection for the best online lenders, thanks to its easy-to-use interface, crucial features, and a simple search tab for all loans. The interactive online system helps the non-bank lender cut costs and eliminate fees. Once you enroll in the online platform, you can close your loans within two weeks. However, LenderFi is unavailable for Missouri, New York, Hawaii, Nevada, and Utah households.
- Bank of America
Bank of America is one of the best banks for refinancing your mortgage due to its different loan types and robust customer service. It offers services across the country and provides interest rates from 2.5%. Bank of America is a traditional bank meaning that a lot of paperwork and documentation may be involved than in, say, LenderFi above.
- Alliant Credit Union
If you prefer credit unions over traditional banks and online platforms, Alliant Credit Union is one example that can refinance your mortgage and waive the insurance. The lender is available in all states and serves customers online with almost 100,000 ATMs nationwide.
Better.com is the best choice when you want to initiate a refinance and end up with the lowest costs and fees possible. With no payments for application or origination, Better.com helps you save on costs while offering instant estimates and approval within minutes. You only need a minimum of 620 credit score to qualify for a refinance from Better.com.
- Navy Federal Credit Union
If you’re a veteran, consider the NFCU for a free rate lock, military choice program, match guarantee, and more. This will be the best option for you if you’ve already exhausted your VA option. Remember, you must be an active or retired member of the US. Armed forces, a member of the veteran’s household, or a department of defense employee to qualify.
- Guaranteed Rate
The Chicago-based lender operates in all the states and boasts over 400 locations countrywide. You don’t have to physically visit any of Guaranteed Rate locations, as you can see the rates for different loan types, complete your application entirely online, and receive preapproval within minutes of applying.
- 10.North American Savings Bank
NASB is the best mortgage refinance option if you have credit issues or are self-employed, but be ready for a more expensive mortgage menu. NASB has mortgage options for first-time homebuyers, the self-employed, and veterans.
Refinance Your Mortgage Wisely
The first thing you want to do before choosing the best refinancing lender is to balance your current situation with your goals—all potential pros and cons of refinancing your home call for careful consideration. Refinancing to a longer-term could drastically reduce your payment, while a short period may help you pay off the loan faster.
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