Best Refinance Mortgage Companies

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Contributor, Benzinga
Updated: September 26, 2022

Most of our users get purchase and refinance loans from North American Savings Bank.

Quick Look: Best Refinance Mortgage Companies

Are you having trouble paying your current mortgage every month? Have interest rates fallen since you got your loan? If you answered “yes” to either of these questions, it might be time to consider a refinance.

Best Refinance Mortgage Companies

Now that you understand how refinancing works, it’s time to start getting quotes. Let’s take a look at some of the best mortgage companies on our radar.

1. Angel Oak Home Loans: Best for Bank Statement Loans

  • Angel Oak Home Loans
    More Details
    Avg. Days to Close Loan
    30
    Minimum Credit Score
    640
    securely through Angel Oak Home Loans's website
    More Details

Angel Oak Home Loans is a full-service mortgage lender offering traditional and portfolio mortgage loans, but their most innovative product is the Non-QM home loan. This bank statement-only product for self-employed borrowers does not require tax returns and includes a 1099 Income option for 1099 earners.

  • Loan amounts up to $3 million
  • 12 or 24 months personal or business bank statements
  • Two years out of bankruptcy, short sale, foreclosure, or deed-in-lieu
  • Owner occupied, non-owner occupied, second homes
  • 1099 option available
  • 40 year fixed interest only
  • Delayed financing available
  • Non-warrantable condos allowed

The customer service team is easy to reach via email, phone or the online contact form, and you can begin your journey by searching for a local advisor right on the website. You can even refinance previous loans into a style that Angel Oak provides, allowing you to maximize your monthly budget.

Angel Oak is headquartered in Atlanta, Georgia and is licensed in AL, AZ #0927070, licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act, CO, CT, DE, DC, FL, GA #32379, ID, IL, IN, IA, KS, KY, LA, ME, MD, MI, MN, MS, NV, NH, licensed by the N.J. Department of Banking and Insurance, NM, NC, OH, OK, OR, PA, Rhode Island Licensed Lender, SC, TN, TX, UT, VT, VA, WA dba AOHL LLC, WI.

2. Rocket Mortgage®: Best for Simple Applications

  • Rocket Mortgage
    More Details
    Avg. Days to Close Loan
    30
    Minimum Credit Score
    580
    securely through Rocket Mortgage's website
    More Details

You won’t need to worry about navigating a complicated loan application process with a Rocket Mortgage® refinance. Rocket Mortgage® has taken as many steps as it can to simplify the refinancing process. Its intuitive system is so easy to navigate that you can complete your application on your phone. Rocket Mortgage® services many different types of loans, from USDA loans to conventional mortgage and even jumbo loans.

Its website is also packed with information on refinances and offers a host of great resources. Looking for the simplest mortgage process possible? Be sure to consider Rocket Mortgage®. 

3. Luxury Mortgage: Best for Self-Employed Professionals

Luxury Mortgage makes it easy for all types of home buyers to get approved for a mortgage. Their flexible requirements can help you get financing, with no employment or income verification and no minimum DTI. Luxury Mortgage offers traditional loan terms, as well as more flexible home payment plans with their 40-year loan program.

It’s also easier to get approved if you’re self-employed. Tax returns are not required and you’ll only need one year of self-employment income history and a minimum credit score of 580. Luxury Mortgage can also help you get approved on assets alone, like your bank statements, stocks and bonds, or retirement accounts.

Luxury Mortgage is licensed to lend in Connecticut, Georgia, Illinois, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, and Washington.

4. Bank of America: Best for High Debt-to-Income Ratio

  • Bank of America Mortgage
    Avg. Days to Close Loan
    45
    Minimum Credit Score
    620

Your debt-to-income (DTI) ratio is a percentage that expresses how much of your monthly pre-tax income goes towards your recurring debts. Most refinance lenders require you to have a DTI ratio of less than or equal to 50% when you refinance, which means that less than 50% of your income goes to things like housing, credit card debt and student loans. This can quickly get you into a mortgage catch-22: You need to refinance because your monthly payment is taking up too much of your budget, but you can’t refinance because your debt is too high to qualify.

Bank of America may allow you to refinance with a DTI ratio as high as 55% and a credit score as low as 600 points. Having trouble managing your mortgage loan and you have student loans or other debt? Qualifying for a loan can be easier with Bank of America.    

5. Wells Fargo: Best for In-Person Service

  • Wells Fargo – Mortgage
    More Details
    Avg. Days to Close Loan
    90
    Minimum Credit Score
    620
    More Details

If an online mortgage solution isn’t right for you, consider refinancing with Wells Fargo. Wells Fargo is one of the largest mortgage lenders in the United States, with over 8,000 independent branches in operation.

At Wells Fargo, you can apply for a mortgage loan online, over the phone or in-person at one of its branches. You can also begin your mortgage loan online and finish out your application in person with a representative. If the comfort of a human helping hand is on top of your list of refinancing priorities, be sure to consider a refinance with Wells Fargo. 

6. PNC Financial Services: Best For On-Demand Customer Service 

  • PNC Financial Services
    Avg. Days to Close Loan
    40
    Minimum Credit Score
    700

In a world full of malfunctioning technology and confusing refinancing processes, it can be helpful to know that your new lender has a reliable customer service team on your side. If on-demand customer service is important to you, consider choosing PNC Financial Services for your loan.

PNC is one of the few refinancing companies to offer 24/7 customer support — so no matter when you have an issue, you’ll have a team ready to help. 

Refinance Eligibility

Refinancing can be a quick and easy solution to many mortgage woes. You can refinance your interest rate to take advantage of lower current rates and save money over time. If you’re having trouble paying off your loan, you can lower your monthly payment by refinancing to a longer term. You can even take a portion of your built equity out of your home with a cash-out refinance. But who qualifies for a refinance?

There is no legal limit on the number of times that you can refinance. However, you do need to meet a few lender standards before you’ll qualify.

How Much You Can Refinance

Under most circumstances, your lender won’t allow you to refinance 100% of your home value. The limit for refinancing is usually around 80% to 90% of your total loan value. This means that you’ll need to pay on your loan for a while before you can qualify for a refinance.

For example, let’s say that you bought a home worth $250,000 with a 3% down payment. When you take out your loan, you have a principal balance of $242,500. After a year of making payments on your loan, you may have paid down $2,500 of your principal balance through monthly payments.

You may decide you want to refinance. However, you only have 4% equity in your home at this point — which means that you’ll have a very difficult time finding a lender willing to service your loan. During the beginning of your loan, the vast majority of your monthly payment goes toward interest. This means that you might need to make payments on your loan for a few years before you can qualify for a refinance.

Meet Your Lender’s Standards

You’ll also need to meet your lender’s individual standards to qualify for a refinance. Each lender has its own standards for applicant’s debt, income, credit score and home value.

Your lender will ask you for a bit of personal information to get a better look at your financial situation. Your lender will typically ask you to share your last 2:

  • Pay stubs
  • W-2 forms
  • Bank statements

You may need to provide additional documentation if you’re self-employed. 

5 Tips for Finding the Best Refinance Mortgage Lender

So many companies offer refinances! How can you be sure that you’ve chosen the best mortgage company for your needs? Use these 5 tips to get the best refinance mortgage possible.  

1. Check Your Credit Score

Your credit score plays a crucial role in the interest rates you’ll see when you shop for a loan. If you haven’t checked on your FICO credit score in a while, be sure to take a look before you apply for a refinance. If you’ve been paying your mortgage loan on time every month, chances are that your score has gone up since you took your loan out.

2. Know Your Loan Stats

Your current loan balance and built equity will also affect the interest estimates you’ll receive when you shop. Contact your current mortgage lender and request information on your current loan balance and interest rate. This will give you an excellent jumping-off point to shop for a new loan.

3. Shop Around for Lenders

Don’t be afraid to take plenty of time to compare refinancing lenders. Each lender charges its own set of fees and sets its own individual interest rates. Compare a few lenders and request custom quotes from each will help you find the most affordable refinance possible.

4. Browse by APR, not Interest Rate 

When you shop for refinances, you’ll typically see 2 different percentage rates listed: your interest rate and your annual percentage rate (APR). Your interest rate is the base interest rate you’ll pay on your loan, while your APR is your interest rate plus any annual fees included on your loan. Be sure you’re comparing APRs (not interest rates) when you consider each lender.

5. Know How Much Cash You Need

Taking a cash-out refinance? Know exactly how much money you need before you apply for a new loan. Consolidating credit card debt? Add all of your balances together. Get an estimate from a contractor before you fund a major home improvement. The last thing you want is to be stuck with an incomplete bathroom renovation because you underestimated the price when you took a cash-out refinance. 

Refinancing Made Simple

Refinance rates can change on a daily basis. This makes it particularly important to collect a few quotes before you apply for a new loan. Create a spreadsheet with lender information and a custom quote from each provider and be sure to update this information regularly. As you look for an affordable refinance, knowledge definitely is power.  

Frequently Asked Questions

Questions & Answers

Q
How much do you need to save for a down payment?
A

A down payment on a mortgage can range from 10% or 20% for a conventional mortgage, 3.5% for FHA loans or no down payment for USDA and VA loans.

Q
What is a pre-approval?
A

A pre-approval is a good way to demonstrate to a seller or agent that you can afford a home and the lender has approved your loan up to a certain amount.

Get Ready for Take Off

Rocket Mortgage® is an online mortgage experience developed by Quicken Loans®, America’s largest mortgage lender. Rocket Mortgage® makes it easy to get a mortgage — you just tell the company about yourself, your home, your finances and Rocket Mortgage® gives you real interest rates and numbers. You can use Rocket Mortgage® to get approved, ask questions about your mortgage, manage your payments and more.

You can work at your own pace and someone is always there to answer your questions — 24 hours a day, 7 days a week. Want a fast, convenient way to get a mortgage? Give Rocket Mortgage® a try.