ElitePersonalFinance found the Best Mortgage Refinance Rates and Lenders of December 2025

One of the best moves a savvy homeowner can make is to refinance a mortgage correctly when interest rates are favorable. Whether you’re looking to cut your own term, lower monthly payments, or take advantage of your home equity for any number of expenses, the process can easily be overwhelming if you’re not educated.

Ley ElitePersonalFinance, you are unfriending the right mortgage refinance lenders and current rates as of October 2025. You’ll understand who the top lenders are, the pros and cons of different types of refinance loans, and perform basic calculations to determine your Breakeven point.

Whether you’re looking for improved Financial flexibility or immediate savings, continue reading our guide to make the best refinancing decision you can.

Why Should You Trust ElitePersonalFinance?

At ElitePersonalFinance, we understand that refinancing your mortgage with the right lender and the correct locked-in rate can result in one of the most impactful financial moves you can make. Now is the perfect opportunity to reduce your monthly payments, shorten your loan terms, or take advantage of your home’s equity. Trusted names like Chase, Rocket Mortgage, and U.S. Bank (as well as many comparable digital Banks) pave the way, increasing confidence with ease.

Note that mortgage refinancing does not apply to a one-size-fits-all approach. What are you looking to change from a fixed rate to an adjustable rate mortgage, shave off a few percentage points, or apply cash out to consolidate debt? Choosing the right lender and timing your refinance make all the difference.

Keep reading to learn more about the best mortgage refinance rates and lenders, with a word on average refinance rates, comparisons between top lenders, pros and cons of refinancing in today’s macroeconomic climate, alternative refinancing options, FHA Streamline Refinance, and much more.

SuperMoney

Supermoney is an online Marketplace that provides internet access to dozens of legitimate refinance lenders, offering an easy-to-use platform for side-by-side comparisons. Whether you’re shortening your loan term or tapping into your home equity for a larger purchase, expect to see side-by-side rates, estimated payments, third-party lender reviews, and other top-line information within a single platform, with no need to fill out multiple applications.

Additionally, various refinancing options are available, including conventional, FHA, VA, USDA, and jumbo loans. Pre-qualification is quick and takes less than 5 minutes, depending on your financial profile. Note that SuperMoney is not a direct lender but rather an aggregator. It conducts searches and comparisons, allowing borrowers to compare different refinancing options.

What We Like:

• Instant access to dozens of refinancing lenders
• Helpful side-by-side comparisons
• Trusted first-party and third-party customer ratings and reviews
• The qualification process takes less than 5 minutes
• Easy and intuitive website

What We Don’t Like:

• Not a direct lender
• Refinancing rates depend on the lender
• No in-person customer support
• Eligibility/underwriting standards vary by refinancing lender

Eligibility & Next Steps:

• 18 years of age or older
• S. citizen or permanent resident
• Valid Social Security number
• Proof of income and employment history
• Pre-approval documents, e.g., credit score and bank statements
• Apply online through the SuperMoney portal to view offers

Terms: SuperMoney is an aggregator/comparison site that helps you evaluate mortgage and refinance lender offers from all types of mortgage providers, including banks and credit unions. It does not issue any loans directly and does not offer guaranteed loan approval. Actual rates and loan approval depend on several criteria, including your income, credit score, debt-to-income ratio, and loan type. Borrowers should review all official lender disclosures and terms before signing any mortgage agreement from participating SuperMoney mortgage lenders.

NextDoorLending

Promising to make refinancing simple, NextDoorLending is one of our favorite mortgage refinancing providers. With more than 200 lenders for refinancing needs, this Marketplace allows Borrowers to compare rates and own products side by side.

One of our favorite things about NextDoorLending is its detailed, viral questionnaire, which asks you everything from your State of residence to your goals (e.g., lowering your monthly payment or taking cash out). This advisory-driven approach allows for personalized recommendations. Plus, with an A++ + rating from the Better Business Bureau alongside thousands of five-star Google reviews, NextDoorLending is clearly one to trust.

All in all, you can’t go wrong choosing NextDoorLending as your next mortgage refinancing provider.

What We Like:

• A+ Better Business Bureau rating]
• Thousands of five-star Google reviews
• Knowledgeable and dedicated advisors
• Online pre-qualification available
• Personalized loan recommendations

What We Don’t Like:

• Not a direct lender
• Eligibility/underwriting standards vary by refinancing lender
• No in-person customer support
• Not the most widely recognized compared to legacy banks

Eligibility & Next Steps:

• 18 years of age or older
• S. citizen or permanent resident
• Valid Social Security number
• Proof of income and employment history
• Pre-approval documents, e.g., credit score and bank statements
• Apply online through the NextDoorLending website

Terms: NextDoorLending is a mortgage and refinance broker. Actual rates and loan approval depend on several criteria, including your income, credit score, debt-to-income ratio, and loan type, with no guarantee of loan approval. Borrowers should review all official lender disclosures and terms before signing any NextDoorLending mortgage agreement.

NBKC Bank

Promising “refinancing that works for you” on its homepage, digital-only NBKC Bank is proud to announce that it can save you up to $4,949 over the typical life of your loan, compared to the average of national mortgage lenders in a Curinos.com study. It offers all types of refinancing options, including conventional, FHA, VA, and jumbo loans, providing a straightforward online application that allows users to pre-qualify and monitor loan progress.

Consider NBKC Bank with its transparency. It’s known for competitive rates and minimum closing costs. Apart from mortgages and mortgage refinances, NBKC Bank also provides other Financial products, such as certificates of deposit, money market accounts, and digital banking.

Additionally, the website features a helpful refinance calculator that allows you to obtain a free, customized quote by simply entering your zip code and answering a few basic questions.

What We Like:

• Minimum refinancing fees
• Different types of refinancing options available, e.g., conventional, FHA, VA, and jumbo refinancing
• Easy-to-use online tools
• Kansas City’s Strongest Large Bank by the Kansas City Business Journal (2022)

What We Don’t Like:

• Limited-in-person support
• Not available in all states
• Not as widely known as Rocket Mortgage

Eligibility & Next Steps:

• 18 years of age or older
• S. citizen or permanent resident
• Valid Social Security number
• Proof of income and employment history
• Pre-approval documents, e.g., credit score and bank statements
• Apply online through the NBKC Bank website

Terms: NBKC Bank offers mortgages through NBKC Bank. Actual rates and loan approval depend on several criteria, including your income, credit score, debt-to-income ratio, and loan type, with no guarantee of loan approval. Borrowers should review all official lender disclosures and terms before signing any Chase mortgage agreement.

First Federal Bank

One of the most popular Regional mortgage refinance banks, First Federal Bank, offers excellent support for its borrowers with all types of refinance products, including conventional, FHA, VA, and USDA. It has a strong focus on in-person customer service along with automated tools and dedicated loan officers that can walk you through every step of the process.

Plus, with its regional offerings, there are plenty of flexible criteria for local borrowers, such as not requiring the highest credit scores, quicker appraisals, and more flexible property condition criteria.

Plus, First Federal Bank comes with many helpful refinance tools on its website, such as a Refinance Savings Calculator, which helps users learn how much interest they can save by making the move. Other tools include refinance estimators and state-specific guides to help you make a better decision.

Terms: First Federal Bank offers refinancing through its community-based branches. Actual rates and loan approval depend on several criteria, including your income, credit score, debt-to-income ratio, and loan type, with no guarantee of loan approval. Borrowers should review all official lender disclosures and terms before signing any First Federal Bank refinance agreement.

What We Like:

• Variety of refinance options, eg, conventional, FHA, VA, and USDA loans
• “America’s Best Regional Bank” by Newsweek (2025)
• Flexible underwriting criteria
• Dedicated loan officers on staff
• Helpful digital tools on the website

What We Don’t Like:

• Limited geographically
• Not as fast as online lenders
• Higher than average appraisal title or origination fees
• Less name recognition compared to Chase and Wells Fargo

Eligibility & Next Steps:

• 18 years of age or older
• S. citizen or permanent resident
• Valid Social Security number
• Proof of income and employment history
• Pre-approval documents, e.g., credit score and bank statements
• Apply online through the First Federal Bank website

Chase

Arguably one of the top three Legacy banks in the United States, Chase Mortgage is dominant with its wider variety of refinance options, including conventional, jumbo, FHA, and VA loans. It’s an intuitive online platform that allows users to track applications in real time, with thousands of branches throughout the country offering personalized guidance from dedicated loan officers.

Plus, Chase’s online refinancing tools are powerful. Any number of mortgage calculators and refinance comparison charts can help you calculate your break-even point to determine if refinancing is right for you.

What We Like:

• Wide variety of refinance options, including jumbo, FHA, and VA loans
• High 676 score (2024 U.S. Mortgage Servicer Satisfaction Study)
• Winner of six 2025 Coalition Greenwich Awards
• Strong online tools
• Recipient of the 2025 MortgagePoint Lending Excellence Award

What We Don’t Like:

• Higher than average closing costs
• Buyers with lower credit scores will struggle
• Slower approval times compared to online lenders
• Not all branches have the same level of customer service

Eligibility & Next Steps:

• 18 years of age or older
• S. citizen or permanent resident
• Valid Social Security number
• Proof of income and employment history
• Pre-approval documents, e.g., credit score and bank statements
• Apply online through the Chase website

Terms: Chase offers refinancing through JPMorgan Chase Bank, N.A. Actual rates and loan approval depend on several criteria, including your income, credit score, debt-to-income ratio, and loan type, with no guarantee of loan approval. Borrowers should review all official lender disclosures and terms before signing any Chase mortgage agreement.

Bank of America

A formidable one-two alongside Chase, Bank of America offers several refinance products, including government-backed loans (FHA, VA) and jumbo loans. It has a very intuitive online application process that allows you to do everything from upload your documents to lock in your rates in one shot. Plus, like Chase, it has thousands of branches throughout the country, so you can get the guidance of an experienced mortgage advisor if needed.

One of the best things about Bank of America is its participation in the Home Grant and Down Payment Grant programs in select States, which offer excellent relief for first-time home buyers. Plus, their website is full of useful refinancing tools, such as calculators and mortgage rate alerts, that help you understand when it’s the best time to move forward.

What We Like:

• Wide range of refinance options
• Thousands of branches throughout the country
• Participation in the Home Grant and Down Payment Grant programs
• Ranked 3rd in the 2024 U.S. Mortgage Servicer Satisfaction Study
• “Best Mortgage Lender Overall” by Bankrate (2022)

What We Don’t Like:

• Higher than average closing costs and fees
• Stricter underwriting criteria compared to online banks
• Slower application of closing speed
• Specialized programs are not available in all states
• Customer service depends on the branch

Eligibility & Next Steps:

• 18 years of age or older
• S. citizen or permanent resident
• Valid Social Security number
• Proof of income and employment history
• Pre-approval documents, e.g., credit score and bank statements
• Apply online through the Bank of America website

Terms: Bank of America offers refinancing through Bank of America, N.A.. Actual rates and loan approval depend on several criteria, including your income, credit score, debt-to-income ratio, and loan type, with no guarantee of loan approval. Borrowers should review all official lender disclosures and terms before signing any Bank of America refinancing agreement.

Rocket Mortgage

With arguably the coolest name on the list, Rocket Mortgage is one of the most popular digital refinancing lenders, offering all types of loans, including rate-and-term, cash-out, FHA, and VA refinance. Its intuitive online dashboards allow you to track your refinance progress in real time, along with helpful tools that depict payments and total interest over time.

One of the best things about rate-and-term, cash-out, FHA, or VA refinance is that you can get approval within minutes. Plus, it consistently ranks amongst the top digital lenders, earning Awards such as and a 4.5 out of 5-star rating by Moneywise (May 2023).

All in all, if you prioritize speed and efficiency over face-to-face interactions, then Rocket Mortgage can be the right refinance lender for you.

What We Like:

• Wrap it initial approvals, Rate Rewind, float-down options available
• #1 in client satisfaction for mortgage servicing by J.D. Power (2025)
• 5 out of 5-star rating by Moneywise (May 2023)
• Best Overall Mortgage Lender for First-Time Homebuyers (Bob Vila)

What We Don’t Like:

• No in-person customer support
• Retired comparable to local banks
• Not the most excellent flexibility in the writing for odd financial profiles
• Fees associated with Rate Rewind and float-down options

Eligibility & Next Steps:

• 18 years of age or older
• S. citizen or permanent resident
• Valid Social Security number
• Proof of income and employment history
• Pre-approval documents, e.g., credit score and bank statements
• Apply online through the Rocket Mortgage website

Terms: Rocket Mortgage is an online lender. Actual rates and loan approval depend on several criteria, including your income, credit score, debt-to-income ratio, and loan type. Borrowers should review all official lender disclosures and terms before signing any mortgage agreement from Rocket Mortgage.

Better.com

As one of the most popular digital-first mortgage lenders, Better.com is best known for its no-commission loan officers and an entirely online process that makes refinancing easy for everyone. On top of offering all types of mortgage loans (e.g.,), it has an extensive refinancing program.

One of the best things about Better.com is that it offers no commission, origination, or application fees on refinances. Plus, you’ll be able to view real-time, customized rate quotes and see how a 15-year refinance looks alongside a 30-year refinance or other terms.

All in all, Better.com is a highly recommended option for anyone, from first-time homebuyers to experienced buyers, with its hassle-free refinancing opportunities.

What We Like:

• The entire process is done online
• No commission, origination, or application fees
• Pre-approval and as little as 5 minutes
• All types of refinancing options are available

What We Don’t Like:

• No in-person customer support
• Rates vary depending on your financial profile
• Not all refinancing programs are available in each state

Eligibility & Next Steps:

• 18 years of age or older
• S. citizen or permanent resident
• Valid Social Security number
• Proof of income and employment history
• Pre-approval documents, e.g., credit score and bank statements
• Apply online through the Better.com website

Terms: Better.com is an online lender. Actual rates and loan approval depend on several criteria, including your income, credit score, debt-to-income ratio, and loan type. Borrowers should review all official lender disclosures and terms before signing any refinancing agreement from Better.com.

Reliant Home Funding

Based in Long Island, New York, Reliant Home Funding is well-known for its personalized approach, offering all types of mortgage refinance opportunities, including conventional, FHA, VA, USDA, and jumbo Loan refinances. Dedicated loan officers walk you through the entire refinancing process, making it an excellent choice for first-time home buyers who may be overwhelmed with a self-service digital platform like Rocket Mortgage.

With Reliant Home Funding, you can rest assured that you can meet all of your refinancing goals. What is the lower monthly payment or shortening your loan term? Everything is right for the taking. All in all, if you’re in New York, then consider Reliant Home Funding for personalized service and excellent hands-on support.

What We Like:

• All types of refinance products, including conventional, FHA, VA, USDA, and jumbo
• Experience dedicated loan officers
• Combination of digital and in-person processes
• Excellent refinance rates
• Emphasis on customer experience

What We Don’t Like:

• Not a truly digital platform like Rocket Mortgage and com
• Closing costs and fees vary by refinancing loan and state
• Emphasis on New Yorkers, not so much nationwide
• 100% online lenders have faster approval times

Eligibility & Next Steps:

• 18 years of age or older
• S. citizen or permanent resident
• Valid Social Security number
• Proof of income and employment history
• Pre-approval documents, e.g., credit score and bank statements
• Apply online through the Reliant Home Funding website

Terms: Reliant Home Funding is an online lender. Actual rates and loan approval depend on several criteria, including your income, credit score, debt-to-income ratio, and loan type. Borrowers should review all official lender disclosures and terms before signing any refinancing agreement from Reliant Home Funding.

loanDepot

Like Rocket Mortgage, loanDepot is an entirely online lender that offers tons of refinancing options, including conventional, FHA, VA, jumbo, and ARM loans. It distinguishes itself from the package with its Lifetime Guarantee, which means all lender fees are waived if you refinance for the same property within a specified period.

Another aspect of loanDepot we like is its melloNow program. This digital underwriting engine provides loan approval within minutes, working much faster than traditional lenders like Chase Bank or Wells Fargo. Plus, the platform comes complete with refinancing calculators and license lending offers that provide full transparency based on your goals and do not direct you to any one particular lender or loan offer.

What We Like:

• Lifetime Guarantee waives lender fees for refinances on the same property
• Wide range of refinance products
• Excellent digital tools, approvals within minutes
• Licensed in all 50 states
• Loan officers are instructed not to steer to particular products

What We Don’t Like:

• Slower closing times, taking 45 to 60 days
• No USDA loans available
• Higher-than-average closing costs and origination fees
• Not all are qualified for the Lifetime Guarantee

Eligibility & Next Steps:

• 18 years of age or older
• S. citizen or permanent resident
• Valid Social Security number
• Proof of income and employment history
• Pre-approval documents, e.g., credit score and bank statements
• Apply online through the loanDepot website

Terms: loanDepot is an online mortgage/refinancing lender. Actual rates and loan approval depend on several criteria, including your income, credit score, debt-to-income ratio, and loan type. Borrowers should review all official lender disclosures and terms before signing any refinancing agreement from loanDepot’s participating lenders.

LendingTree

Arguably the most popular online lending marketplace in the United States, LendingTree works similarly to SuperMoney in that it allows you access to a wide range of refinancing lenders, where you can compare multiple applications side by side.

Through a single LendingTree inquiry, you can receive multiple refinance offers within 5 minutes. There are many types of refinancing loans available, such as FHA, VA, and cash-out refinancing. Additionally, numerous built-in digital tools allow you to streamline the process, including a monthly payment estimator, lender fee comparison, and an extensive customer ratings Library, enabling homeowners to make the best choice.

Note that LendingTree is not a direct lender, but rather an intermediary that presents rates and fees. If you’re looking to compare shops and review multiple refinancing offers quickly, LendingTree is an excellent place to start.

What We Like:

• Access to dozens of lenders through a single application\
• All types of refinance products (conventional, FHA, VA, jumbo, cash-out)
• Helpful side-by-side rate/fee comparison
• Excellent resource library
• Pre-qualification process is done entirely online

What We Don’t Like:

• Not a direct lender
• Terms, fees, and eligibility criteria vary by lender
• Lots of marketing (follow-up calls and emails) from lenders once the form is submitted
• Not as personalized as dedicated loan officers at banks

Eligibility & Next Steps:

• 18 years of age or older
• S. citizen or permanent resident
• Valid Social Security number
• Proof of income and employment history
• Pre-approval documents, e.g., credit score and bank statements
• Apply online through the LendingTree website

Terms: LendingTree is an online mortgage and refinancing marketplace. Actual rates and loan approval depend on several criteria, including your income, credit score, debt-to-income ratio, and loan type. Borrowers should review all official lender disclosures and terms before signing any refinancing agreement from LendingTree’s participating lenders.

What Are Mortgage Refinance Lenders and How Do They Work?

If you want to replace your existing mortgage, it’s time to tap into a mortgage refinance lender, which could mean any number of institutions, from traditional banks to mortgage marketplaces. Every type of lender works differently. For example, banks and credit unions focus on in-person customer service, whereas online lenders prioritize speed for pre-qualification to closing.

Remember that comparison marketplaces like SuperMoney are not direct lenders but intermediaries that connect borrowers with multiple lenders to compare different offers.

The first step in the refinance process is pre-qualification, where lenders collect all of your basic information, such as your credit score and property value. Based on this, an interest rate is estimated along with the qualified loan terms. Rely on online lenders like Rocket Mortgage, which can perform near-instantaneous pre-qualification using their proprietary automated systems. Know that traditional banks usually take longer before giving out any preliminary offer.

Once you’ve moved past the pre-qualification stage, it’s time to submit a formal application, which includes all of your detailed financial information, such as employer, income, and assets. At this stage, you’ll also be asked to pull your credit report and conduct a complete property appraisal to determine the current value of your home. Expect a deeper review of your finances here.

From there, your application moves on to underwriting, where the underwriter examines your creditworthiness and considers your property’s appraisal as well. At this point, you may be asked for additional documentation. If your home comes with a lower appraisal value, then your loan terms may be adjusted to minimize the lender’s risk.

After underwriting, it’s time for loan approval, which involves a formal agreement outlining all the mortgage or mortgage refinance terms, including the interest rate and any associated fees.

From there, you work on closing the loan, which means all legal documents are signed and your new loan becomes active. From there, you can expect various post-closing tasks, such as managing escrow accounts, handling post-closing inquiries, and providing post-closing services, while complying with all federal regulations in case of future refinancing or property sale.

Are Mortgage Refinance Rates Fixed or Variable?

Market refinance rates can be either fixed or variable. A fixed-rate mortgage means your interest rates and monthly payments stay the same over the life of the term, protecting you against market fluctuations. For example, if you have a $400,000 loan at 6% for 15 years, the principal will remain the same throughout the entire period.

In turn, variable rate loans (also referred to as adjustable-rate mortgages) start with lower initial rates before adjusting based on Federal Reserve activity and overall market conditions. If rates remain low, you can save a lot of money, but you might lose it if rates rise over time.

All in all, when deciding between fixed or variable refinances, consider your risk tolerance, time at home, and any financial goals.

Is It Worth Refinancing Your Mortgage in 2025?

Whether or not it is worth refinancing your mortgage in 2025 depends on several factors, including your current rates and loan timeline. If you want to lower your monthly payments immediately, you can refinance a $400,000 mortgage from 6.5% to 5.5% to save roughly $200 per month.

Plus, you can take advantage of cash-out refinancing, which allows you to take out your home equity to pay for any number of expenses, including debt repayment and extensive renovations. Additionally, shortening your term from 30 to 15 years helps build up more equity but also increases your monthly payments.

Be mindful of all upfront costs associated with refinancing, such as origination and appraisal fees, which are deducted from your savings if you plan to move in the near, not-so-distant future. Keep in mind that rates move depending on market conditions, so we recommend locking in the correct rate as early as possible.

What Are Typical Mortgage Rates Right Now?

As of now, typical mortgage rates are falling in the 6% to 7% range for 30-year fixed rates and 5.5% to 6.5% for 15-year fixed rates. A key takeaway is that ARMs start with lower rates but adjust over time based on market conditions and depend on several factors, including your credit score, loan type, and amount of down payment. Suppose you want to take advantage of the best rates now. In that case, we recommend using digital lenders, which offer speed and comparison tools, instead of traditional banks, as they offer more in-person assistance but slightly slower processing times.

As always, be mindful of your percentage rates, which reflect the actual cost of borrowing, including all fees associated with a refinance.

Pros and Cons of Refinancing a Mortgage

Here are the pros and cons of refinancing a mortgage in 2025:

Lower Monthly Payments

One of the most significant advantages of refinancing your mortgage is securing a lower monthly payment. By taking down your interest rate or extending your loan term from 15 years to 30 years, you can save up to hundreds of dollars every month, which can be used for other expenses. For example, if you refinance a $400,000 mortgage from 7.25% to 25%, you can save nearly $300 a month, totaling around $90,000 in interest over 30 years, saving you a pretty penny.

Tap into Home Equity

By taking out a cash refinance, you can turn your home’s Equity Into Cash, which can be used to pay off expenses like making additional upgrades or paying for college tuition. If you have a 6.5% mortgage rate and you take out $60,000 worth of equity, then the entire process could cost you less than taking out a bunch of credit cards that charge upwards of 25% interest. Fortunately, all of our recommended options offer this type of program.

Shorter Loan Terms

If you refinance from a 30-year mortgage to a 15-year mortgage, then you can build equity a lot faster. Although you can expect to pay more in monthly payments, you will pay lower interest over time. For example, if you have an outstanding $400,000 balance, then switching to a 15-year refinance could save you more than the interest. Plus, many banks are willing to extend discounted closing costs if you cut your term so that you’re encouraged to pay off your property quicker.

Take Advantage of Rates

If you switch from a fixed-rate mortgage to an adjustable-rate mortgage, then you can take advantage of lower rates. Plus, FHA Streamline and VA IRRRL programs can make refinancing easier than ever by eliminating the need to appraise your home or provide minimal documentation.

Cons

Upfront Costs

Unfortunately, if you don’t manage a refinance correctly, you can expect to pay anywhere from $7,000 to $17,500 in fees on a $350,000 refinance. These fees include origination, title, and appraisal costs, which can cut into your savings if you’re not planning to stay in your home for less than 5 years. However, some lenders are offering no closing cost options, but you can expect to pay higher interest rates in return.

Extends Repayment Timeline

Although you can secure lower monthly payments with a refinance, your repayment timeline will be extended. Even if your rate drops, restarting a 30-year term means you will be paying interest for a much longer period. If you’ve already paid off 10 years’ worth of mortgage, then taking out a shorter-term refinance might not be the worst idea, as it saves you more in total interest.

Qualification

If you want the best refinancing terms, then you will need a strong credit score and a steady income. Expect to pay higher rates or fees if you have lower credit scores, although FHA and VA streamline programs offer some reprieve. Just be ready to have a credit score of at least 620 if you want to refinance with a major bank like Chase, Wells Fargo, or Bank of America.

Uncertain Rates

Depending on the Federal Reserve and other microeconomic conditions, interest rates can move quickly even after you are pre-approved, which can increase your total loan costs. That’s why we recommend locking in your rate as soon as you receive an offer, which you can do only 30 to 60 days before expiration.

All in all, refinancing your mortgage in 2025 can be a savvy move, as long as you weigh all the up-front costs and your breakeven point before deciding.

How to Choose the Best Mortgage Refinance Lender

If you want to save thousands of dollars on your Loan, here are some helpful tips on how to use the best mortgage refinance lender, complete with real-world examples:

Understand What Your Goals Are

Borrowers refinance for several reasons, including but not limited to lowering interest rates and shortening loan terms. I understand your goal, and upfront, it will help determine the best lender.

For example, if you’re looking to cut down on your monthly payments, then opt for a low-cost, no-commission option like Better.com. However, if you want to build equity faster in your home, then switch to a 15-year term from a 30-year loan with a reputable lender like NBKC Bank, which offers short-term refinance options with minimal closing fees.

Looking for a cash-out refinance? If so, Chase Bank and Wells Fargo are excellent options, as their underwriting criteria may be more flexible for larger loan amounts.

Compare Interest Rates/APRs

Always try to pay attention to the annual percentage rate (APR), which better depicts what your Loan will cost over the entire term, including related fees such as origination and underwriting costs.

For example, if one lender charges you a 6.25% rate with $4,000 in fees and a second lender offers you a 6.5% rate with $1,000 in expenses, then the latter option may be more enticing, especially if you plan on living in your home for a brief period. Of time before refinancing again within the next several years. One of the best things you can do as an informed borrower is to use platforms like SuperMoney, which can allow you to view side-by-side comparisons of top legitimate lenders, all without a hard credit check.

Remember, calculating your breakeven point is one of the best ways to determine if refinancing makes sense for your financial situation.

Look into Customer Service

Refinancing a mortgage involves several steps from pre-qualification to closing. Everything is part of the process, and the lender should be on top of things. That’s why we recommended Rock and Mortgage and Better.com for their quick and easy-to-use automated systems, which offer near-instant pre-qualification and real-time updates on your progress.

Conversely, look at traditional Banks like Wells Fargo, which can offer in-person support with dedicated loan officers who can guide you through complex paperwork.

Do not forget to look into third-party review sites, such as the Better Business Bureau and TrustPilot, to understand what borrowers have experienced firsthand.

Beware of Hidden Fees/Extra Costs

If you’re not careful, you may be offset by fees such as application and processing fees. One of the best ways to avoid surprises is by requesting a Loan Estimate and reviewing all the outlines of all charges you can expect to pay at closing.

We also highly recommend platforms like better.com, which offer no origination or application fees. All the larger banks, such as Chase and Wells Fargo, reduce administrative costs in closing attempts and try to negotiate these. One must always be mindful of third-party expenses, such as third-party appraisal fees, which depend on the blender and the State of residence.

Always be mindful and wary of any lender that is not fully transparent about all refinance-related costs.

Consider Online Lenders

We highly appreciate mortgage refinance lenders like Rocket Mortgage and Better.com for their digital experience. They provide one-stop shops for borrowers to complete everything from pre-qualification to tracking loan progress in real-time, with approvals within minutes.

Plus, they’re known for custom rate quotes using sophisticated algorithms that also link to your payroll information for even faster processing. You can expect limited in-person support, so you may not be the most comfortable with complex Financial situations.

In turn, direct lenders like Reliant Home Funding manage the entire process in-house, eliminating the need for third-party intermediaries and resulting in faster decisions, which is beneficial for those with tight schedules. Since there’s minimal overhead and fewer markup rates, rates remain competitive, offering more personalized communication than digital-only platforms. For example, there’s no shortage of dedicated Loan offers who can guide you every step of the way, no matter what your credit profile looks like, which algorithms cannot replicate.

LastlyLastly, do not forget to consider local lenders and credit unions, such as First Federal Bank, which focus on relationships and offer a little more leeway on fees and credit requirements for community members. Note that they’re also more specialized in niche situations, such as reporting self-employment income under state-specific regulations, albeit with slightly slower approval times. Additionally, you may not have access to the same Diversified mix of refinancing options as national organizational lenders.

Understand How You Qualify

Several factors contribute to determining your mortgage refinance eligibility, including your employment history and loan-to-value ratio. For example, Rocket Mortgage typically requires credit scores of 620 or higher, whereas specific programs, such as the VA loan program, accept lower scores for retired or active-duty personnel.

Master Rate Locks

As you know, mortgage rates fluctuate depending on macroeconomic conditions, with even a percentage point costing you thousands over the term of your refinance. That’s why we highly recommend locking in your right within a standard 30- to 60-day window (with fees applying for extensions). For example, Chase offers a float-down option that lets you take advantage of lower rates if rates drop before your closing time.

Be sure to familiarize yourself with how your lender manages rate changes, as well as the cost of correct lock extensions in case you need them.

Learn Your Options

The next step in choosing the right mortgage refinance lender is to understand what type of Loan fits your Financial profile best. For example, if you’re interested in providing minimal documentation and no home appraisal, then you may benefit from an FHA streamline refinance Loan.

In turn, if you’re a military veteran or active service member, you can take advantage of VAVA interest rate reduction refinance loans from Reliant Home Funding, allowing you to enjoy little to no out-of-pocket costs with many of the same benefits as FHA Loans.

If you’re looking to buy and sell your home within the next few years, you may benefit from an adjustable-rate mortgage, which allows you to opt in to a fixed rate. e.g., 5/6 or 7/6 loans that will enable competitive interest rates within the first several years compared to traditional loans (albeit at the risk of potential rate adjustments later)

Look into Reputation

Another critical aspect of choosing the right mortgage refinance lender is to check its reliability record. One of the best ways to do this is by checking for firsthand feedback from the Consumer Financial Protection Bureau (for compliance) and the Better Business Bureau to get an idea of average closing times and Loan Servicing expertise.

That’s why we’re big fans of Rocket Mortgage, which has won numerous awards, including J.D. Power’s U.S. Primary Mortgage Servicer Satisfaction Award for several years in a row. The stronger the reputation, the better the Peace of Mind you’ll have as you move throughout the refinance process.

Do Not Forget the Fine Print

With any mortgage refinance, you also want to pay close attention to the fine print. Ensure that there are no hidden fees and check for verbiage regarding adjustable rate changes or escrow requirements that could significantly impact your monthly budget if not carefully reviewed.

If you’re dealing with a customer support representative at Chase or Wells Fargo, a reputable loan advisor will always walk you through the details with as much transparency as possible. Never fall for marketing jargon like ‘limited-time rate’ or other gimmicks.

In short, choosing the right mortgage refinance opportunity is not always about the lowest rate, but rather a legitimate bank that understands your goals. Do not skip comparing offers (SuperMoney is excellent for this); instead, work only with reputable institutions that have your best interests in mind.

How to Apply for a Mortgage Refinance Step by Step

Here’s a helpful step-by-step guide on how to apply for a mortgage refinance:

Define Your Goal

The first step towards refinancing your mortgage is to understand what you want to achieve. Do you want to lower your monthly payment during the loan term? What about converting an adjustable-rate mortgage to a fixed-rate mortgage? Once you understand what you’re trying to achieve, run a quick calculation to estimate your monthly savings. This calculation takes into account closing costs of up to 5% of your loan value and determines your breakeven point.

If you’re breaking even well after you expect to remain in the house, then refinancing may not be the best opportunity.

To understand better, here’s a quick calculation. If you’re incurring a finance charge of $4,800 and you’re saving $1,000 per month, a 24-month term makes sense. If you plan to switch homes, refinancing may be a good option.

Repair Your Credit

Pulling credit reports from each of the three bureaus (Equifax, Experian, and TransUnion) will allow you to assess your financial situation and dispute any inaccuracies so that you can boost your credit score before taking advantage of mortgage refinance rates.

Lower your credit utilization ratio by paying down revolving balances and try not to open any new accounts in the meantime, since new inquiries can temporarily affect your credit score, potentially causing you a percentage point or two that can easily equate to thousands of dollars over the life of the Loan.

Gather Documentation

Some of the items mortgage Finance lenders expect include, but are not limited to, your last two W-2s, the last two years of tax returns, and the 30 most recent days of income activity. Mortgage refinance lenders examine every piece of this information, including large unexplained deposits and line-by-line business losses that can impact your eligibility.

Shop Around

After you’ve gathered all documentation, start shopping around for the right mix of lenders and gather as many Loan Estimates as possible. One of the best ways to get started is by using an aggregator like SuperMoney to see side-by-side comparisons of mortgage refinance lenders.

When requesting quotes, make sure to provide other identical information, such as the loan amount and expected down payment, for a valid comparison of apples to apples.

Pre-Approval and Pre-Qualification

Pre-qualification and pre-approval matters. Whereas pre-qualification is a soft pull, a pre-approval is a lender’s declaration stating that they’re ready to offer a mortgage refinance for a set rate and terms, allowing for faster processing. Note that pre-approvals are conditional and not intended to be final, as any significant life events, such as a job change, could necessitate a second underwriting.

That’s why we recommend keeping your finances in order before any pre-approval.

Negotiation

After you’ve read loan estimates line by line and calculated your breakeven point, it’s time to negotiate by using competing Loan Estimates as leverage from the underwriter to the lender. Sometimes, the lenders will negotiate, but other times they will not. During the negotiation stage, you can expect some counteroffers, either as a small rate cut or credit towards closing costs.

Lock Your Refinance Rate

After negotiating, it’s time to lock your quoted right into a guaranteed rate for a set number of days, which usually ranges from 30 to 60 days. The higher the volatility in the market, the better it is if you’re off with a longer lock. Plus, you can also take advantage of float down options, which allow you to lock in the rates if they fall for a small fee. Best practice is to lock immediately after underwriting, once your credit is checked and all income is verified.

Don’t Forget Appraisals

Your refinance deal can fall through with a lower appraisal. Understand all of the different types of appraisals available, including full interior Appraisal, exterior drive-by, hybrid Appraisal, and AVM (automated valuation model).

Note, some mortgage refinance programs, such as FHA and VA, may waive home appraisals altogether; however, other refinance mortgages require complete appraisals.

If your Appraisal comes in low, there are several courses of action you can take, such as contesting with comparables or bringing cash to cover the loan-to-value gap. You may also ask the seller for concessions or consider a different lender altogether, who may have an alternative appraisal method.

You should be fully prepared to present recent comparable sales and the total value of all home upgrades to support your proposed home value.

How to Find Legit Mortgage Refinance Lenders and Avoid Scams

Whether you’re looking to lower your rate or shorten your long-term commitment, there are plenty of scammers out there who try to take advantage and conduct outright fraud.

Keep yourself protected from scam artists with the following tips and tricks:

Verify Licensing and NMLS Registration

If your mortgage broker’s mortgage is not registered with the Nationwide Multistate Licensing System (NMLS), then it is likely a scam. With an NMLS ID, you can check whether the lender’s status information in your State has a history of disciplinary actions by regulatory bureaus. If your mortgage company refuses to share this information, run.

At a minimum, you should check the Better Business Bureau (BBB) and Consumer Financial Protection Bureau (CFPB) databases to ensure they have actual physical locations. Be mindful of scammers who use fake-sounding names that disappear like the wind after collecting all your sensitive details and upfront cash.

Watch Out For Marketing

If you see “guaranteed approval” or a “2% rate for everyone,” the mortgage refinance on it is likely to be a scam. Remember, several eligibility criteria influence mortgage rates, including your credit score and the amount of home equity, with no one-size-fits-all approach for all Borrowers. Oftentimes, scammers will trick you into sharing personal information to charge processing fees.

Remember that legitimate lenders, such as Rock, Rocket Mortgage, and Wells Fargo, will always disclose your rate with an actual federally regulated Loan Estimate, which provides a breakdown of all fees you can expect with your next mortgage refinance.

Check for Secure Protocols

Always ensure you stay on top of your protection by checking for secure, encrypted platforms that safeguard your personally identifiable information, such as your social security number or banking details. Do not pay attention to any offers that come in through Facebook Messenger or other unsecured communication channels.

Remember to constantly check websites that end in “.com” with HTTPS encryption. Do not visit any third-party sites, except for those that are beneficial to you.

Watch Out For Third Parties

Sometimes, third parties will insert themselves into the process, demanding unreasonable fees or payments before providing any loan documentation, which is illegal. Forget about Consultants that charge extra fees, as they have no jurisdiction over loan processes and work only to take part of your money. Please pay close attention to the Loan Estimate forms, which should be provided within three business days of submitting your application.

Don’t Forget Disclosures

Always remember to check for the Loan Estimate, Truth in Lending Act (TILA) forms, and Closing Disclosure, which are official documents offered by trustworthy lenders that explain all your loan terms and conditions, including interest rates and repayment methods.

Frequently Asked Questions

What are the current mortgage refinance rates?

Mortgage refinance rates depend on several factors, including Federal Reserve policy, inflation, and macroeconomic conditions. As of now, rates are moving between 6 and 7%, although you can find lower rates when exploring 15-year 15-year options. Remember that many factors go into deciding your refinance rate, including your home equity, credit score, and type of Loan.

How do I know if refinancing my mortgage is worth it?

Usually, people refinance to lower monthly payments, reduce interest rates, or shorten loan terms to manage a healthy monthly budget. Whether or not it is a good decision depends on whether you stay in your home long enough to break even on your closing costs. For example, if you spend $30,000 on fees but save roughly $250 a month, it’ll only take you a year to recover your costs.

What credit score do I need to refinance my mortgage?

To qualify for a mortgage refinance, you need a credit score of at least $620. However, you may be settled for scores as low as 580 with an FHA or VA refinance. Always remember that the higher your score, the better your conditions. If your credit score is lower than you want, we highly recommend shopping around to find a lender who specializes in working with you, especially if your home equity is very high.

How much does it cost to refinance a mortgage?

Expect to pay anywhere from 2% to 5% of your loan balance on a refinance, depending on the lender, the duration of the Loan, and your State of residence. These costs cover various fees, including title insurance and lender origination. There are expected exceptions, and you should ask for a Fratewishn estimate to understand your position.

How long does it take to refinance a home loan?

Expect to take anywhere from 30 to 45 days to complete the entire refinance process. However, digital lenders are usually experienced with this timeline. The actual timeline depends on several factors, such as weather, the need for a home appraisal, or documents that take longer than usual. In a best-case scenario, you can expect to close refinance and as little as 2 weeks for FHA Streamline and VA IRRRL refinances.

What’s the difference between a rate-and-term refinance and a cash-out refinance?

A rate and term refinance allows you to replace your existing mortgage with one that has a lower rate or shorter term, to pay off interest and your entire property faster. On the other hand, Cash-out refinances allow you to borrow more than what you owe and cash out the difference, essentially converting your home’s Equity into Cold Hard Cash that you can use for several things, such as paying off debt or splurging on a renovation project.

Can I refinance my mortgage with bad credit?

Yes, it is possible to refinance your mortgage with bad credit, but don’t expect to have many options. If you have lower-than-average credit scores or limited equity, you can consider government-backed programs like FHA Streamline or VA IRRRL refinances. There are also other ways to understand and qualify you outside of your credit, such as income, payment history, and your existing mortgage. It’s always possible to find a mortgage refinance broker specializing in non-prime borrowing.

How much can I save by refinancing my mortgage?

How much you can expect to save by refinancing your mortgage depends on several factors, such as your current rate and the amount of your loan. For example, if you refinance a $350,000 mortgage from 7% to 6%, it could save you close to $250 a month or roughly $83,000 in interest over the life of your Loan. The shorter the term of the Loan, the higher the interest savings, even if the monthly payments rise a little.

What documents do I need to refinance my mortgage?

There’s a lot of documentation required to refinance your mortgage, including recent pay stubs and bank statements. You also need to gather all of your existing mortgage documentation together, which includes home insurance information. Self-employed? Expect to provide business tax returns and profit or loss statements to make up the difference with title verification of all of your assets and liabilities (especially if your financial picture changes, such as taking out your first Loan)

How often can you refinance your mortgage?

You can refinance your mortgage any number of times you want. However, some lenders and loan types have specific waiting periods. For example, traditional, FHA, and VA loans require borrowers to wait a minimum of 6 months after a previous loan closes.

Conclusion

Refinancing your mortgage could mean making a significant difference by lowering the amount of interest paid, shortening loan terms, and more. By taking the time to compare all of our recommended lenders and educate yourself on all aspects related to refinance, you’ll be in a strong financial position to transform your mortgage and create a better future for yourself.