Mortgage refinance is a financial tool that allows you to take out a new loan against your home while continuing to live in it. Using the equity you own in your home as collateral, you could bag a mortgage with a better repayment tenure and a lower interest rate.
Let’s take a look at the pros and cons of companies that offer the best mortgage refinance.
LenderFi
Pros
Instant online approvals with minimum personal information requirements
Online mortgage process with updated rates for qualifying borrowers
No lending fees
Speedy loan closing (within 14 days)
Telephonic access to loan consultants
Cons
Limited to certain states
Customers have to apply to access minimum borrowing requirement information
Bank of America
Pros
Reduced loan origination fees (up to $600) for qualifying existing customers
Interest rates between 2.5% and 3.25% depending on loan and tenure
Access via physical branches, telephone, or online channels
Supports loan management through a mobile app or website
Cons
Minimum credit score varies according to loan type
Expensive closing fees
AmeriSave Mortgage
Pros
Convenient and fast online application process
Access to no-obligation rate and mortgage information
Detailed fee structure
Minimum required down payment of 3%
FHA loans; minimum credit score of 580
Accurate quotes and low rates
Cons
No leeway for expensive purchases or changing jobs during the refinancing process
Requires recent interior and exterior appraisal
Better.com
Pros
No fees
Best loan rates between 1.875% and 3.750 %
Approvals within 180 seconds
A time frame of three weeks from application to closing
Minimum credit score of 620
Nationwide refinance
Cons
No physical presence for issue resolution
Does not offer Jumbo refinance options
Quicken Loans
Pros
Offers conventional, government-backed, and jumbo loans in all states
Minimum score eligibility of 580 for FHA and 620 for conventional loans
Access to cash-out, term, and rate loans
Hassle-free online loan application
Outstanding customer service
Cons
Does not accept alternate forms of credit data
Electronic mortgage closing is through an external company
Doing a bit of research online and efficiently using online comparison tools can help you make an educated decision while choosing a mortgage refinance company. To avoid surprises along the way, we suggest speaking with your financial advisor before refinancing your home.