4 Best Mortgage Refinance Companies Of 2022

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Many people think they’re stuck with the mortgage they have, but that’s not the case. A mortgage refinance can be a great personal finance tool. It can lower your monthly payments, lower your interest rate, and put cash in your pocket for things like paying off high-interest credit card debt or making much-needed home improvements.

A mortgage refinance can save you money but if you’re still traumatized from the nightmarish home buying process, you might be hesitant. Add to that the number of refinancing companies there are to consider, and plenty of people decide that it’s not worth the hassle.

Best Mortgage Refinance Companies

If you’re considering a refinance, here are some of the top companies that make the process quick and easy.

Credible

Unlike the other options on this list, Credible is a marketplace that matches lenders with customers. This allows you to get multiple refinancing offers after filling out a single application.

Type of Refinance: Fixed-rate, adjustable-rate, cash-out.

Minimum Credit Score: 620

Why We Like It: Prequalified rates in 3 minutes. You only need to provide minimal information to prequalify and with no hard pull on your credit.

Click here to get multiple mortgage refinance rates from lenders competing for your business with Credible now.

LoanDepot

LoanDepot is a lender that offers personalized help, with more than 150 in-person branches and more than 2,000 licensed loan officers waiting to help you with your loan.

Type of Refinance: Fixed-rate and adjustable rate.

Minimum Credit Score: 620

Why We Like It: LoanDepot offers a lifetime guarantee. After your first refinance, the company will waive the lender fees and reimburse appraisal fees on all future refinances with the company.

Click here to get your refinance rate from LoanDepot now.

Figure

Figure provides an application that can be completed online in about 10 minutes, and the company allows you to close on your loan in as soon as a few days.

Type of Refinance: 30-year fixed term, cash-out refinance.

Minimum Credit Score: 620

Why We Like It: No penalty for paying off your mortgage early. Dedicated member support with an average response time of 45 seconds.

Click here to get your refinance rate from Figure now.

Axos Bank

When you refinance your mortgage with Axos Bank, there is no lender fee.  You could earn an annualized 3% cashback credit on all of your mortgage payments, principal, and interest up to $1,200 per year. Just be sure to maintain the minimum daily balance in your Total Loan Rewards Axos checking account!

Type of Refinance: Cash out, no cash-out.

Minimum Credit Score: 620

Why We Like It: No lender fee. 3% cashback on all payments. Digital services that include free rate watch and an online application process.

What is a Mortgage Refinance?

A mortgage refinance is the act of taking out a new loan to pay off your original mortgage. With the original mortgage paid off, borrowers can take advantage of a new mortgage with a lower interest rate or better terms.

Why Refinance Your Mortgage?

People refinance to save money in some way or to get access to cash. Borrowers refinance in order to take advantage of lower interest rates, reduce their monthly payments by increasing their repayment term, or cash out some of the equity they’ve built in their home.

If you didn’t put down 20% when you bought your home, you’re paying PMI, primary mortgage insurance. PMI protects the lender in case you default on the loan. The thought is that if you don’t have at least a 20% stake in your home, it’s easier to make the decision to walk away if you can’t afford to pay your mortgage anymore.

The average annual PMI premium generally ranges from .55% to 2.25% of the original loan amount each year. For a $250,000 home, your PMI can cost between $1,375 and $5,625 per year or $114.58 to $468.75 per month!

If you’ve accumulated enough equity to do so, you can refinance your mortgage and eliminate PMI entirely.

When to Refinance Your Mortgage

If you can qualify for an interest rate at least 1 percentage point lower than your current rate, refinancing can save you a great deal of money over the life of the loan. But it only makes sense to refinance if you plan on staying in your home for several more years. It takes most refinances several months to several years to break even and start saving you money, so if you plan to move in the reasonably near future, it’s not the right time.

How to Refinance Your Mortgage

The process of refinancing your mortgage is not all that different from the process of obtaining a mortgage.

  • Shop around for a lender that offers the terms that best suit your needs.
  • Apply with at least two lenders so you can compare offers.
  • Choose an offer.
  • Lock in your interest rate.
  • Close the loan.

How to Choose the Right Mortgage Refinance Lender For You

Be sure to shop around. Think of refinancing your home as making a significant purchase — a six-figure purchase, because that’s essentially what you’re doing. If you were buying anything that would cost you a six-figure dollar amount, you would be sure to do your research.

With so many mortgage refinance companies out there, there’s at least one that will meet your needs. That’s why it’s generally not a good idea to refinance with your current mortgage lender. You may not have shopped around for the best mortgage when you bought your home and that may have been several years ago, so it’s a good idea to see what offers might be out there now.

And if you bought your home many years ago, you probably didn’t have the option of an online mortgage. Still, there are plenty of online options for refinancing, and many of them have better rates than do traditional lenders because they don’t have the same overhead costs. Those savings are passed on to you, the borrower.

Look for a lender with the lowest interest rates, as this is where the greatest cost savings come from. Understand any fees involved in your refinance, which vary by lender. There are upfront fees, like closing costs, and ongoing fees, like a late payment fee or an early repayment fee. You don’t want the fees to exceed the amount of money you’re saving with a lower interest rate.

Save Some Money Today

We all love to save money, but often, we are penny-wise and pound-foolish. If you really want to save money, an impactful amount of money, refinancing your mortgage can be a great way to do it.
Whether you refinance to a lower interest rate or do a cash-out refinance to pay off your credit card debt, a mortgage refinance can put a lot of money back in your pocket.