As a homeowner, it’s easy to forget that you aren’t locked into your current mortgage. By refinancing your mortgage, you could potentially get a new loan that better helps you achieve your financial goals — whether it’s saving money, reducing your payments, or another objective. Continue reading to learn everything you might need to know about refinancing a mortgage — from the requirements for mortgage refinancing to some of the top mortgage companies!

In simple terms, mortgage refinancing is the process of replacing your current mortgage with a new mortgage. A homeowner will usually make this move when there is a loan with a lower interest rate than that of their current mortgage, as this could allow them to lower their monthly payment and potentially save thousands of dollars in the long run. Of course, there are other reasons to refinance a mortgage as well. A homeowner might wish to increase their monthly payment or get access to a lump sum of cash.

What Is Mortgage Refinancing?

While there are all kinds of mortgage refinance products on the market, the most common options including the following: Rate-and-Term Refinance: The most common home refinancing option, a rate-and-term loan allows the homeowner to take advantage of a lower interest rate so that they save money on their home. Cash-Out Refinance: This type of refinancing option allows the homeowner to replace their current loan with a larger loan and receive the difference in cash. Those who have built up equity in their home are most likely to qualify for this type of loan. Cash-In Refinance: For the homeowner who hasn’t yet built up enough equity in their home, a cash-in refinance allows them to not only take advantage of a lower interest rate but also pay a large amount of money down. Typically, this will result in a lower monthly payment and smaller principal amount. No-Closing Cost Refinance: As the name suggests, a no-closing cost refinance allows the homeowner to get a new loan without paying a lump sum of money upfront. Rather, the closing costs are worked into the loan and paid over time.

Understanding the Types of Mortgage Refinancing

<h2>How to Refinance Your Mortgage</h2>How to Choose a Mortgage Refinance CompanyTake the following steps when choosing a mortgage refinance company: Step #1: Gather multiple quotes. In order to find the best mortgage refinance company for you, you should request quotes from multiple lenders. The more options you can gather, the better. Step #2: Compare interest rates and terms. With multiple quotes in hand, compare the interest rates and terms of each option. If your primary goal for mortgage refinancing is to save money, getting a lower interest rate should be a priority. Step #3: Compare closing costs and fees. The truth is that closing costs and fees have the potential to offset the costs savings of a lower interest rate. Compare these fees across your different options and factor them into your decision. Step #4: Compare company profiles. Once you have narrowed down your options, you will need to make sure that the company you are considering has a positive reputation and solid customer service. Check out the company’s online reviews and their history with other customers.

<h2>Requirements for Mortgage Refinancing</h2>While specific requirements vary from lender to lender, some common requirements for a mortgage refinance include the following: <ul><li>A credit score of 500 (for FHA loans) or higher</li><li>A reasonable amount of equity in your home (roughly 20% or higher)</li><li>A low debt-to-income (DTI) ratio (roughly 43% or lower)</li><li>Proof of income (W-2s, 1099s, tax returns, pay stubs, employment history, etc.)</li></ul>

<h2>Why Should You Refinance Your Mortgage?</h2>There are a few different reasons why you might consider refinancing a mortgage: To save money: The first and most common reason why people refinance is to take advantage of a lower interest rate. Because a home is such a large purchase, lowering an interest rate by even one percent could potentially save you thousands of dollars. To own your home faster: If your financial situation has improved, you may want to make larger monthly payments on your home across a shorter term. Getting a new loan might allow you to achieve this. To make smaller monthly payments: If you’re struggling to pay your mortgage each month, getting a new loan with a lower interest rate or longer term could allow you to reduce your monthly payments to a more manageable amount. To access the equity in your home: A cash-out refinance, specifically, allows you to take out a larger loan than your initial mortgage. This cash can be used for a variety of purposes, whether it’s paying off high-interest debt, consolidating debt, making home improvements, or something else.

<h2>Frequently Asked Questions:</h2>

With there being so many different lenders, the reality is that the best mortgage company for one person may not be the best mortgage company for another person. To find the best mortgage company for you, collect and compare multiple quotes. You should also check out a company’s online reviews before submitting an application.

Who Is the Best Mortgage Company to Refinance With?

You may be tempted to refinance with your current mortgage company if they offer you a lower interest rate. Keep in mind, however, that their rate might still be higher than the market. Before refinancing with the same company, be sure to gather quotes from other companies as well. You may even be able to use these to help negotiate a better rate with your current mortgage company.

Is It Better to Refinance With Your Current Mortgage Company?

While refinancing your mortgage could potentially save you money, you should consider the closing costs of a new loan. An application fee, origination fee, title search and insurance fee, and other fees might end up costing 2%–5% or more of your loan amount. You will need to make sure that the savings from your new loan will offset these costs for it to be worth it.

How Much Does It Cost to Refinance a Mortgage?

Improving your credit and lowering your debt will help you get the best mortgage refinance deal. Then, when it comes time to shop for a new home loan, gather quotes from multiple companies and compare rates. Be sure to comb through closing costs and any fees.

How Do I Get the Best Mortgage Refinance Deal?

Initially, refinancing could cause your credit score to dip. Over time, however, it may improve your score as you lower your debt and show your ability to make monthly payments on the loan.

Does Refinancing Hurt Your Credit?

Mortgage Refinance

Top Mortgage Refinance Companies of 2025

<ul><li>New American Funding has funded $69 billion in home loans since 2010.&nbsp;</li><li>You get a 5 year rate protection pledge, which means if rates drop, you can refinance with no fees (terms apply).&nbsp;</li><li>There is no minimum credit score to get approved with New American Funding.</li></ul> New American Funding: NMLS#6606

New American Funding

New American Funding Mortgage Refinance

<ul><li>LendingTree is an online lending marketplace.</li><li>The company streamlines the shopping process by allowing you to gather and compare rates from multiple mortgage refinance companies in one place.</li><li>LendingTree allows you to shop a wide range of financial products, including personal loans, credit cards, and of course, mortgage refinance offers.</li><li>The company draws from its network of over 700 lenders to help customers find the best rates. LendingTree has facilitated over 65 million loan requests since 1996.</li></ul>