The 5 Best Refinance Companies and When To Use Them

Andrew Reyes
man in purple suit jacket holding a toy house in his hand

Before refinancing your home, there are a few steps you want to take. First, make sure that you know your credit score and any negative information listed on your credit report. Second, get an appraisal done to see how much your home is currently worth.

When you know that number, you can subtract what you still owe on your current loan from it. This will show you how much equity is in your home and help you determine how beneficial a refinance will be to you.

Once you have decided that refinancing is right for you, begin looking into the best refinance companies and choose the one that is suited for your circumstances.

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Best Refinance Companies To Choose

When deciding on the best refinance companies to choose from, consider these qualities:

  • Low-interest rates
  • Limited extra fees
  • Excellent customer service

Loans are a very personalized financial product, so you will need to do your own research on the company that will be most suitable for you and your life. To get your research started, here are the five best refinance companies to choose from.

Rocket Mortgage (Quicken Loans)

In 2021, Quicken Loans changed its name to Rocket Mortgage to better show how they have taken the complicated process of home loans and simplified it with technology. However, it is still the same reliable company. Rocket Mortgage is very user-friendly and has excellent customer service.

Since 1985, Rocket Mortgage has been assisting homeowners and potential homeowners to secure loans with the best rates. Rocket Mortgage consistently tops the list of the best refinance companies each year.

Better Mortgage

Better.com is quickly becoming a leader in mortgage companies. They are top-rated for their customer service and their transparency. Better Mortgage gives homeowners customized rates in mere seconds, and the application process can be done completely online.

You can’t beat Better Mortgage for its website usability and the ease of its mortgage process.

Nationwide Home Loans

If you have a less-than-typical home circumstance, such as a manufactured home or a VA Loan, Nationwide Home Loans may be one of the best refinance companies for you. They have over 100 years of experience and consistently top-rated reviews.

Nationwide Home Loans has 24/7 customer service and works hard to give you the best rate possible for your refinance.

Navy Federal Credit Union

Navy Federal Credit Union is a leader in low-interest rates and a VA loan provider. If you are an active or retired military or family member, Navy Federal Credit Union should be your first choice when researching your refinancing needs.

With Navy Federal Credit Union, you may be able to obtain a better rate, convert to a fixed rate, or receive cash from the equity of your home.

Bank of America

Bank of America may be the most well-known of all the best refinance companies. While the website is not as user-friendly as others on our list, it is a consistently well-rated mortgage company and still a top contender. They specialize in refinancing from an adjustable-rate mortgage to a fixed rate in order to save you more money.

With thousands of locations across the United States, they are an excellent choice for people who want to go in person to talk to someone about a mortgage refinance.

When To Use the Best Refinance Companies

The housing market can be significantly volatile, with rapidly changing rates and fees. When interest rates drop, it’s an excellent time to look into refinancing. One of the most common reasons people refinance their house is to save money.

Other reasons are to change from a variable-rate to a fixed one, receive cash from current equity and adjust the term of the current loan.

Save Money

When interest rates fall, you can potentially save money on your mortgage by refinancing. If you have plenty of equity in your home already and an excellent credit score, consider a refinance. You can either stay with your current company or choose from one of the best refinance companies listed here.

Change Rate Type

Sometimes an adjustable-rate mortgage (ARM) can have the lowest interest rates offered, but as the housing market fluctuates and adjusts, you may find that your ARM has become too high. If your initial mortgage is an ARM, watch the interest rates regularly to see when a to refinance may be the best choice.

Make sure to keep up with your personal household finances so that when the time comes to refinance, you are well-prepared to be able to take advantage of a fixed-rate mortgage.

Receive Cash

This reason to choose one of the best refinance companies is the most controversial one on the list. If you are refinancing to receive cash equity to pay off debts, make sure that you have learned better budgeting and purchasing choices. You do not want to refinance only to go on and acquire more debt in the future.

It can sometimes be beneficial to refinance and receive the equity in order to complete upgrades on your home. If the upgrades will raise the value of your home more than the cash equity you receive, this can be a very financially sound choice.

Adjust the Term

A typical mortgage term is 30 years. If the interest rate of a mortgage falls far enough, you can refinance to a shorter-term mortgage and continue to pay around the same monthly rate. This is not always the case, so using a mortgage calculator can help you determine if this is a good reason to begin the refinancing process.

As you can see, when you are looking to refinance your mortgage, there are many choices of best refinance companies and reasons you would want to use them. One of the best ways to ensure that you are ready for refinancing is to keep your credit score high.

If you need help understanding credit scores or credit reports, refer to this credit learning center from Fiscal Tiger. Don’t let your credit get in the way of getting the best mortgage refinancing possible!

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