Start free: ask your current servicer for a quote (especially an FHA streamline or VA IRRRL), and use a HUD-approved housing counselor and the CFPB's Loan Estimate tools to check offers. Among lenders, Rocket Mortgage publishes the lowest refinance credit minimum we found (580 for rate-and-term), Better Mortgage publishes its typical closing costs and charges no prepayment penalties, and Guild accepts scores as low as 540 on FHA and VA loans. Choose by comparing Loan Estimates from at least three lenders on the same day and checking that you will stay in the home past your break-even point.
This guide is for homeowners who want a lower rate, a different loan term or cash from their equity. We compared lenders that refinance nationally: Rocket Mortgage, Better Mortgage, Guild Mortgage, Pennymac, Veterans United, loanDepot, New American Funding and nbkc bank.
Rates change daily and depend on your credit, points and loan-to-value, so we ranked lenders on facts that hold still: published credit minimums, which refinance types they offer, what they disclose about costs and their complaint records.
Below you will find free help to use first, each lender's terms and weak spots, the closing cost and break-even math, and a checklist for comparing Loan Estimates.
Free help to check before you pick a lender
Start with these free steps. They cost nothing and make every lender quote easier to judge.
- Ask your current servicer for a quote. If you have an FHA or VA loan, ask whether you qualify for an FHA streamline or a VA IRRRL. These refinances use less paperwork and often skip the appraisal, according to lenders such as Pennymac. You can still compare that quote with other lenders, and the VA says to contact several lenders because terms and fees vary.
- Talk to a HUD-approved housing counselor. Counselors approved by the U.S. Department of Housing and Urban Development give independent advice on whether loan terms fit your situation, often at little or no cost. Search by ZIP code at consumerfinance.gov/find-a-housing-counselor or call 1-855-411-2372.
- Check rate ranges with the CFPB. The CFPB’s Explore interest rates tool shows the range of rates for a sample borrower. Its examples assume a purchase loan, a 700 credit score and 10% down, so treat it as a rough check, not a refinance quote.
- Use the CFPB Loan Estimate checklist. The CFPB’s Loan Estimate explainer walks you through each line so you can compare offers side by side.
How much refinancing costs
A refinance has closing costs much like the ones you paid when you bought the home. Freddie Mac says to expect 3% to 6% of the loan principal, depending on your lender, credit score and location. Rocket lists 2% to 5% of the loan amount on its refinance pages, and Better says most of its loans in the past year had closing costs of $1,500 to $5,500.
Typical charges include:
- Lender origination and underwriting fees
- Appraisal and credit report fees
- Title services, recording and attorney fees
- Discount points, if you pay them. One point equals 1% of the loan amount, so one point on a $300,000 loan is $3,000.
- For VA IRRRLs, a VA funding fee of 0.5% of the loan
You can often roll these costs into the new loan, but you then pay interest on them for the life of the loan.
Break-even math: will refinancing pay off?
The VA’s advice works for any refinance: divide your closing costs by your monthly savings to see how many months it takes to earn the costs back.
Worked example. You owe $200,000. Closing costs are 3% of the loan, which is $6,000. The new rate lowers your principal and interest payment by $200 a month.
- Break-even: $6,000 divided by $200 equals 30 months, or 2.5 years.
- If you plan to stay in the home 5 years (60 months), you keep about 30 months of savings: 30 times $200 equals $6,000 ahead, before any change in total interest from resetting the loan term.
- If you might move in 2 years (24 months), you would save $4,800 against $6,000 in costs, a $1,200 loss.
Two cautions. First, a lower payment from stretching a loan back to 30 years can cost more interest overall, so compare total interest, not only the monthly payment. Second, if costs are rolled into the loan, your savings shrink slightly because the balance is larger.
How to compare Loan Estimates
A lender must give you a Loan Estimate within three business days of receiving your application. It is a standard three-page form, so offers from different lenders line up line by line. The CFPB recommends getting Loan Estimates from several lenders.
- Request them the same day. Rates move daily, so quotes taken on different days are not a fair comparison.
- Match the loan. Same loan amount, term, rate type and lock period on each estimate.
- Compare Origination Charges (page 2, section A). The CFPB calls these upfront lender fees an important part of the cost of the loan.
- Compare points and lender credits. Points lower the rate for cash now. Lender credits lower your closing costs for a higher rate. Check whether a low rate is being bought with points.
- Check the cash to close and the loan amount. A lower cash to close can mean costs were rolled into a larger balance.
- Ask about anything different from what you were told. The CFPB suggests asking why when the estimate does not match your conversation.
Cash-out vs rate-and-term refinancing
Rate-and-term replaces your loan with a new rate, term or both, without taking money out. Cash-out replaces your loan with a larger one and pays you the difference in cash.
- Credit bar. Cash-out usually has a higher credit minimum. Rocket, for example, lists 580 for rate-and-term and 620 for cash-out.
- How much you can take. Rocket says a conventional loan typically lets you access up to 80% of your home equity, while a VA cash-out can reach up to 100% for eligible borrowers. New American Funding says FHA cash-out is typically limited to 80% loan-to-value.
- Streamline refinances are not for cash. Rocket notes that cash-out transactions are not allowed on a VA streamline (IRRRL), and lenders describe the FHA streamline as a way to lower your rate and payment on an existing FHA loan.
- Debt consolidation risk. Moving credit card debt into a mortgage can lower the rate, but the debt is now secured by your home and spread over many years.
If you only need cash and already have a low rate, a home equity loan or HELOC leaves your first mortgage untouched. Compare both before refinancing a low-rate loan.
Red flags before you sign
- “No-cost” refinances. Freddie Mac says there is no such thing as a free loan: the lender is likely charging a higher rate or rolling costs into the balance. That can still make sense if you will move soon, but run the numbers.
- Being pushed to roll in every cost. Rolling in fees raises your balance and the interest you pay. Ask to see the estimate both ways.
- Prepayment penalties. A prepayment penalty is a fee for paying off all or part of your mortgage early. Check page 1 of your Loan Estimate. Better says it does not make loans with one.
- Offers that sound too good to be true. The VA warns VA borrowers about refinance offers that promise skipped payments or very low rates.
- An unverified lender or loan officer. Every lender in this guide lists an NMLS ID. Look up the company and your loan officer at nmlsconsumeraccess.org before you share documents.
- Points you did not ask for. A sample rate with 2 points means paying 2% of the loan up front. Compare the rate and the points together.
CFPB complaint counts for these lenders
We pulled mortgage complaints received by the CFPB from January 1, 2025 to December 31, 2025, using the CFPB’s public complaint database. Counts include complaints about servicing existing loans as well as new loans, and they are not adjusted for company size, so large servicers will show more.
| Company in CFPB data |
Mortgage complaints, 2025 |
| Mr. Cooper Group Inc. (now part of Rocket) |
2,167 |
| Wells Fargo & Company |
1,237 |
| PennyMac Loan Services, LLC |
686 |
| Rocket Mortgage, LLC |
654 |
| JPMorgan Chase & Co. |
549 |
| Mortgage Research Center, LLC (Veterans United) |
87 |
| Guild Holdings Company |
73 |
| Better Mortgage, Inc. |
33 |
We could not match loanDepot, New American Funding or nbkc to a company name in the database with certainty, so we left them out of this table.
Other options
- Buying a home instead? See our guide to the best mortgage companies for purchase loans.
- Your own bank. Some banks discount refinances for customers. Wells Fargo lists relationship closing cost credits starting at $250 and rate discounts starting at 0.125% based on eligible assets.
- Credit unions. If you belong to one, ask for a Loan Estimate and compare it with the lenders above.
- Home equity loan or HELOC. If your current rate is low and you only need cash, a second loan can cost less than refinancing the whole balance.
Terms to know
- Rate-and-term refinance
- A new loan that changes your interest rate, loan term or both without taking cash out.
- Cash-out refinance
- A new, larger loan that pays off your current mortgage and gives you the difference in cash.
- VA IRRRL
- The VA's Interest Rate Reduction Refinance Loan, a streamline refinance for an existing VA-backed loan.
- FHA streamline refinance
- A refinance of an existing FHA loan with reduced paperwork, often without an appraisal.
- Discount points
- Upfront fees, each equal to 1% of the loan amount, paid to lower your interest rate.
- Lender credits
- Money from the lender toward closing costs in exchange for a higher interest rate.
- Loan Estimate
- A standard three-page form a lender must send within three business days of your application showing the rate, payment and closing costs.
- NMLS ID
- The unique number assigned to a licensed mortgage company or loan officer in the Nationwide Multistate Licensing System.
