Top cash-out refinance loan providers of the year 2025
Uncensored Guide to Cash-Out Refinance Lenders in 2025
Dive into the best lenders offering cash-out refinancing services, designed to help you tackle high-interest debt, fund home renovations, or any financial endeavor. Check out our top picks below!
2025's Preferred Cash-Out Refinance Lenders
| Lender | Credit Requirements | Our Score || --- | --- | --- || Chase | 620 (conventional), 680 (jumbo), 640 (FHA, VA) | 4.9 ⭐️ || Bank of America | 620 (conventional) | 4.8 ⭐️ || Better | 620 (conventional), 580 (FHA), 620 (VA) | 4.8 ⭐️ || Navy Federal Credit Union | - | 4.8 ⭐️ || PenFed Credit Union | 650 (conventional), 700 (jumbo), 620 (FHA) | 4.8 ⭐️ || PNC Bank | 620 (conventional, jumbo, FHA, USDA) | 4.8 ⭐️ || SoFi | 620 (conventional), 600 (FHA, VA) | 4.8 ⭐️ |
Lender Highlights
Chase
Chase
Serving all U.S. states, Chase excels with various loan options, competitive rates for existing customers, and a $5,000 closing guarantee. Despite having branches in 4,700 locations, they may not be the best fit for borrowers with unique circumstances.
620 for conventional loans, 680 for jumbo loans, 640 for FHA loans, 640 for VA loans
Bank of America
4.9
Available in all states, Bank of America offers deals ranging from conventional to FHA loans, competitive rates, and discounts for Preferred Rewards customers. Unfortunately, they do not provide USDA loans, and transparency about borrower requirements is limited.
Better
Bank of America
With online services, Better offers a streamlined process ideal for fast decisions, three-minute preapprovals, and hybrid closings. However, they are available only in 10 states, and no USDA loans are offered.
620 for conventional loans
Navy Federal Credit Union
4.8
Open to all U.S. residents, Navy Federal Credit Union may require membership. Benefits include a rate-match guarantee and up to two rate relocks. On the downside, there's no availability for FHA or USDA loans.
PenFed Credit Union
Better
Available nationwide, PenFed Credit Union prides itself on competitive rates and the convenience of managing banking and mortgage under one provider. However, they do not offer USDA loans and have higher minimum credit score requirements.
620 for conventional loans, 580 for FHA loans, 620 for VA loans
PNC Bank
4.8
Open to all U.S. residents, PNC Bank offers a wide range of loan options, both online and in person. Drawbacks include higher credit minimums on FHA loans, limited mobile app functionality, and a below-average ranking from J.D. Power for mortgage servicing.
SoFi
Navy Federal Credit Union
Active in all states (excluding Hawaii and New York), SoFi offers a user-friendly online process with attractive perks, such as closing on time with compensation for extra costs or a $9,500 rebate for working with a SoFi partner real estate agent. However, they do not provide USDA loans, and no branch locations are available.
Undisclosed
What's a Cash-Out Refinance All About?
4.8
A cash-out mortgage refinancing is an opportunity for homeowners who have built considerable equity to replace high-interest debt, finance home improvements, or cover significant expenses. The process involves swapping your current mortgage with a new, expanded loan that includes cash from your home equity. You'll receive a new interest rate with your fresh loan.
Mind this: Most lenders require homeowners to maintain 20% equity in their home when completing a cash-out refinance.
PenFed Credit Union
Pros and Cons of Cash-Out Refinancing
650 for conventional loans, 700 for jumbo loans, 620 for FHA loans
Pros
4.8
- Gain access to a substantial sum to invest in financial objectives.
- Possibility of a lower interest rate if existing loan rates have dipped.
- Improved credit if using funds to consolidate high-interest debt.
- Reduced borrowing costs compared to personal loans or credit cards if you secure a lower interest rate.
Cons
PNC Bank
- Closing costs to be paid (usually 2-5% of the loan amount).
- Loss of existing equity at closing, increasing overall debt load.
- Risk of foreclosure if unable to repay the new loan amount.
- Potential for a higher interest rate if existing mortgage rates have risen.
620 for conventional loans, 620 for jumbo loans, 620 for FHA loans, 640 for USDA loans
Assessing the Best Mortgage Refinance Lenders
4.8
Our website evaluates over 75 lenders based on affordability, availability, and borrower experience, assigning each a score out of five stars. The leading mortgage refinance lenders tend to have a score of 4.8 stars or better. For more information on our methodology, visit our website.
SoFi
Enrichment Data
620 for conventional loans, 600 for FHA loans, 600 for VA loans
Key Insights
4.8
This concise comparison highlights the main differences between cash-out refinancing and HELOCs based on current guidelines:
Cash-Out Refinancing
- Large, upfront payments for renovation projects.
- Fixed-rate stability for better budgeting.
- Simplified repayment, as it replaces your original mortgage.
- Potential tax benefits (check with a tax advisor).
Disadvantages
- Higher closing costs (typically 2-5% of the loan amount).
- Restarting your mortgage term, potentially raising total interest.
- Existing low-rate mortgages lose their advantage when refinanced.
HELOC
- Flexible access to funds with variable rates.
- Lower upfront costs, making it a cheaper option.
- Faster processing, with funding possible in as little as seven days.
- Preserves your existing mortgage and rate.
- No upfront closing fees (unlike refinancing).
Factors to Consider
| Consideration | Cash-Out Refi | HELOC ||-------------------|--------------------|-----------|| Best for | Single, large expenses | Ongoing/uncertain costs || Rate type | Usually fixed | Typically variable || Speed | 30-60 days | As fast as 7 days || Cost | Higher upfront | Lower upfront || Risk | Term reset risk | Rate fluctuation risk |
- With a cash-out refinance, homeowners can replace high-interest debt, fund home improvements, or cover significant expenses by swapping their current mortgage with a new, larger loan that includes cash from their home equity, evaluating potential tax benefits as a possible advantage.
- In 2025, several lenders offering cash-out refinancing services include Chase, Bank of America, Better, Navy Federal Credit Union, PenFed Credit Union, PNC Bank, and SoFi, each with varying credit requirements and competitive rates.
- Wealth-management firms like PenFed Credit Union provide a user-friendly online process to access a substantial sum for investing, offering lower interest rates when existing loan rates have dipped and improved credit if used to consolidate high-interest debt.
- Personal-finance experts recommend assessing the best mortgage refinance lenders based on affordability, availability, and borrower experience. Our website evaluates over 75 lenders, with leading ones scoring 4.8 stars or better.
- Investing in wealth-management strategies like college funding or real estate may be facilitated by taking advantage of cash-out refinancing opportunities, especially for homeowners with built-up home equity. Home equity can be a valuable asset when it comes to refinances and investing in one's financial future.
