Best withdrawal refinance lenders in 2022



Tapping into the equity in your home can be a smart move, whether it’s reducing high-interest debt, financing a home renovation, paying college fees, or making progress toward another goal. financial. One way to do this is through a cash-out refinance, in which you refinance your mortgage for more than you owe and withdraw the difference in cash. Many mortgage lenders offer cash-in refinance, and Bankrate has evaluated several to determine the best ones to consider. Here are our picks for the best cash refinance lenders in 2022.


Methodology

To determine the best withdrawal refinance lenders, Bankrate evaluated lenders based on several criteria, including cost (competitive withdrawal refinance rates and low or no fees); timeliness (approval and closing times); and testimonials from borrowers.


Best cash refinance lenders

Garden State Home Loans

Garden State Home Loans was founded in New Jersey, but the lender has since expanded its services to Connecticut, Delaware, Florida, Maryland, Michigan, New York, Pennsylvania and Virginia. With a Bankrate Score of 4.7 out of five stars, this lender has a lot to offer borrowers looking for a cash refinance.

Loan products
  • Purchase and refinancing, including cash-in refinancing
  • Conventional
  • Giant
  • FHA
  • Virginia
  • USDA
  • Home Equity Loan
  • Construction and renovation loans
Credit requirements
  • 640 (potentially 580 for some loans)
Advantages
  • Online chat function to communicate with the loan officer
  • Closings generally in 40 days
The inconvenients
  • Not available in all states
  • Not all fees disclosed online

Want to know more about Garden State home loans? Read our full review.

Sage Mortgage

Sage Mortgage can be a quick and easy option for those who want to complete the entire refinance process online. Since Sage Mortgage works with several wholesale lenders, you’re likely to find a competitive offer. (Editor’s note: Sage Mortgage is affiliated with Red Ventures, the parent company of Bankrate.)

Loan products
  • Purchase and refinancing, including cash-in refinancing
  • Conventional
Credit requirements
Advantages
  • Closings on average 27 days
  • The application is entirely online
  • Possibility of being matched with the best rate for your situation
The inconvenients
  • No Government Insured Loans
  • No HELOC (home equity line of credit) or home equity loans

You can read more about Sage Mortgage in our full review.

LowRates.com

You can apply for a cash-out refinance through the LowRates.com website, with full credit underwriting completed in just 24 hours. If you want to work with a loan officer in person, you’ll have that option at a Sun West Mortgage Company branch (Sun West operates LowRates.com), but these locations are currently only found in about 20 states.

Loan products
  • Purchase and refinancing, including cash-in refinancing
  • Conventional
  • Giant
  • FHA
  • Virginia
  • USDA
  • HELOC and home equity loan
  • Construction and renovation loans
  • Investment property
  • Reverse Mortgage
Credit requirements
Advantages
  • Full credit subscription available in less than 24 hours
The inconvenients
  • Not available in Georgia and Massachusetts

Interested in borrowing with LowRates.com? Find out more in our Full Review.

Interfirst Mortgage Company

Interfirst Mortgage Company’s Bankrate score of 4.8 out of five stars reflects the benefits of working with this lender. The collection refinance process through Interfirst starts with an online application, which you will need to complete before you can receive a quote.

Loan products
  • Purchase and refinancing, including cash-in refinancing
  • Conventional
  • Giant
  • Investment property
Credit requirements
Advantages
  • Quick pre-approval
  • Online application process
  • No charges
The inconvenients

Check out our full review of Interfirst Mortgage Company to learn more.

Blue Spot Home Loans

Blue Spot Home Loans, an online lender part of Cherry Creek Mortgage, offers a streamlined online application experience, with fast closings. Notably, this lender is very transparent about pricing on their website, which includes a customizable pricing tool.

Loan products
  • Purchase and refinancing, including cash-in refinancing
  • Conventional
  • Giant
  • FHA
  • Virginia
  • USDA
  • Construction and renovation loans
  • Reverse Mortgage
Credit requirements
Advantages
  • Will consider alternative credit data
  • Fast online application process
The inconvenients

Cash-In Refinance FAQs

What are the requirements for cash-in refinancing?

To be eligible for cash-in refinancing, you generally must:

  • Have a minimum credit score of 620
  • Have a debt-to-income ratio (DTI) of less than 50%
  • Maintain a minimum of 20% equity in your home after withdrawal (depending on loan type)

Who is cash refinancing for?

A cash-out refinance is generally most beneficial when interest rates are low and for borrowers who meet requirements and have specific goals for the funds they are withdrawing. This includes those looking to consolidate high-interest debt, complete home renovations, or fund college education.

How much money can I withdraw from home?

The amount you can get out of your home varies, and most lenders want you to retain at least 20% equity after refinancing. For example, let’s say your home is currently appraised at $200,000 and you have $120,000 left to pay on your mortgage. With that much equity ($80,000 or 40%) you may be able to refinance your loan to a new one with a higher balance and cash out, as long as you maintain at least 20% equity at the end. of account.

What credit rating is required for a cash-out refinance?

In general, you will need a credit score of at least 620 to qualify for a cash-out refinance. The exact score you’ll need may vary depending on the lender you work with and other factors.

Refinancing by collection vs. rate and term refinancing

A cash-out refinance is different from a rate-and-term refinance, in which you lower the rate on your mortgage, change the term of the loan, or both. A cash-out refinance can also lower your rate, but because it’s taking some of the equity in your home out in a lump sum, it adds to your loan amount and increases the interest you’ll pay. These funds can be used for a variety of purposes, such as a major home renovation.

Refinance by collection vs. HELOC

A cash refinance isn’t the only way to tap into the equity in your home; you can also apply for a home equity line of credit (HELOC).

With a HELOC, your first mortgage stays intact, but you’ll have access to a revolving source of funds throughout the HELOC draw period, which can be up to 10 years. You are only required to pay interest on the funds you withdraw during this period. Once the draw period is over, any balance must be paid off, usually over 15 or 20 years.

The benefits of a HELOC are that you are only responsible for paying for what you use, you can access the funds at any time, and you won’t have to pay interest on unused funds. However, HELOCs come with variable interest rates, which means they can change and could be higher than what you’d get with a traditional cash refinance.

Summary: The Best Cash Refinance Lenders

With additional reporting by Sarah Sharkey

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