Top Cash-Out Refinance Lenders of the Year 2025
Reimagined Guide:
Unleash the power of cash-out refinancing to tackle high-interest debt, fund dreams like home remodeling, or pursue other financial goals. Let's dive into the top contenders for cash-out refinance lenders in 2025.
Cash-out Refinance Lenders for the Win
| Lender | Credit Requirements | Score ||--------|-------------------|------|| Chase | 620 (conv.), 680 (jumbo), 640 (FHA, VA) | 4.9 || Bank of America | 620 (conv.) | 4.8 || Better | 620 (conv.), 580 (FHA), 620 (VA) | 4.8 || Navy Federal Credit Union | Undisclosed | 4.8 || PenFed Credit Union | 650 (conv.), 700 (jumbo), 620 (FHA) | 4.8 || PNC Bank | 620 (conv./jumbo), 620 (FHA), 640 (USDA) | 4.8 || SoFi | 620 (conv.), 600 (FHA), 600 (VA) | 4.8 |
Chase
Take a Gander * + Availability: All U.S. states + Loans offered: Conventional, jumbo, FHA, VA, refinancing and more + Credit requirements: 620 (conv.), 640 (FHA, VA), 680 (jumbo) + Find 'em: Branch locations and online
Chase
- Serving all 50 states with 4,700 branch locations
- Existing Chase customers may receive rate discount
- $5,000 closing guarantee
- Might not be a fit for unique credit/financial situations
- Not all states have branches
Cons
Pros
620 for conventional loans, 680 for jumbo loans, 640 for FHA loans, 640 for VA loans
Bank of America
4.9
Give 'em a Look * + Availability: All U.S. states + Loans offered: Conventional, jumbo, FHA, VA, refinancing and more + Credit requirements: 620 (conv.) + Where to find: Branch location or online* ### Pros
Bank of America
- USDA loans not available
- Limited transparency around borrower requirements
Cons
620 for conventional loans
Better
4.8
Peek around * + Availability: All U.S. states + Loans offered: Conventional, FHA, VA, refinancing and more + Credit requirements: 580 (FHA), 620 (VA, conv.) + Where to find: Online* ### Pros
Better
- Branch locations only in 10 states
- No USDA loans
Cons
620 for conventional loans, 580 for FHA loans, 620 for VA loans
Navy Federal Credit Union
4.8
Give 'em a whirl * + Availability: All U.S. states + Loans offered: Conventional, jumbo, VA, refinancing + Credit requirements: Undisclosed + Where to find: Branch location or online* ### Pros
Navy Federal Credit Union
- Requires membership to borrow
- No FHA or USDA loans
Cons
Undisclosed
PenFed Credit Union
4.8
Check 'em out * + Availability: All U.S. states + Loans offered: Conventional, jumbo, FHA, VA, refinancing and more + Credit requirements: 620 (FHA), 650 (conv.), 700 (jumbo) + Where to find: Branch location or online* ### Pros
PenFed Credit Union
- No USDA loans
- No ability to customize rates online
- Higher minimum credit score requirements
Cons
650 for conventional loans, 700 for jumbo loans, 620 for FHA loans
PNC Bank
4.8
Check 'er out * + Availability: All U.S. states + Loans offered: Conventional, jumbo, FHA, VA, USDA, refinancing and more + Credit requirements: 620 (conv./jumbo), 640 (FHA, USDA) + Where to find: Branch location or online* ### Pros
PNC Bank
Con
620 for conventional loans, 620 for jumbo loans, 620 for FHA loans, 640 for USDA loans4.8
SoFi
Pop in * + Availability: All U.S. states (except Hawaii and New York) + Loans offered: Conventional, jumbo, FHA, VA, refinancing and more + Credit requirements: 600 (FHA, VA), 620 (conv.) + Where to find: Online* ### Pros
SoFi620 for conventional loans, 600 for FHA loans, 600 for VA loans
- No branch locations (only online)
- No USDA loans
Cons
4.8
Cash-out Refinancing 101
Cash-out mortgage refinancing allows homeowners with substantial home equity to exchange their current mortgage for a larger loan, which includes the cash withdrawn from the home equity. The new loan secures a revised interest rate.
- Trivia: Most lenders require homeowners to retain 20% equity in their home for the refinance.
Cash-out Refinancing: Advantages & Disadvantages
Advantages
- Flexible Funds: Access to funds for various personal goals.
- Lower Interest Rate: Possibility of a lower interest rate compared to the original loan if rates have dropped.
- Debt Consolidation: Potential reduction in credit utilization and improved credit scores by consolidating debt.
- Cost-effective Borrowing: Reduced borrowing costs compared to personal loans or credit cards, if you get a lower interest rate.
Disadvantages
- Closing Costs: Additional closing costs to bear (can range from 3% to 6% of the loan balance).
- Loss of Equity: Loss of existing equity in the property at closing, increasing the overall debt load.
- Foreclosure Risk: Increased risk of foreclosure if the new loan isn't repaid.
- Higher Interest Rate: Potential for a higher interest rate if current rates have risen.
Pro tip:
Seek advice from financial advisors, and compare offers from several lenders to determine the best cash-out refinance solution that fits your circumstances.
To fund your investment plans or personal financial goals, consider cash-out refinancing lenders like Chase, Bank of America, Better, Navy Federal Credit Union, PenFed Credit Union, PNC Bank, and SoFi. Each offers various loans and flexible credit requirements, with branches or online access in multiple states.
Chase, for example, provides conventional, jumbo, FHA, VA loans, and more, with credit requirements starting at 620 for conventional, 680 for jumbo, and 640 for FHA and VA loans. Discover their excellent services, competitive rates, and perks like a $5,000 closing guarantee, by visiting their branch locations or online platform.
