There is no single cash-out refinance lender that is best for every homeowner. The right choice depends on your location, eligibility, loan type and the written terms available to you. Treat lender rankings as a starting point, then compare current Loan Estimates using the same assumptions—and weigh the cash you will actually receive against the new debt secured by your home.
What a cash-out refinance does
A cash-out refinance replaces your existing mortgage with a new mortgage, usually for more than the amount needed to pay off the old loan. The difference, after applicable costs and other amounts due at closing, is paid to you. Your home secures the new, larger balance.
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Homeowners may use proceeds for purposes such as debt consolidation or home improvements. But borrowing against equity reduces the equity you retain in the home. The new loan may also extend the repayment period and increase the total interest you pay. Freddie Mac notes that eligible closing costs, financing costs and prepaid items may be included in the new loan amount. Compare net cash received and total loan cost—not just the monthly payment or advertised rate.
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Which lenders appear on 2026 shortlists?
Two 2026 editorial comparisons identify several lenders, but their picks reflect their own methods and are not live rate comparisons or guarantees of the best terms for you. NerdWallet’s page names Wells Fargo as its overall pick and also lists Navy Federal Credit Union, State Employees’ Credit Union, Andrews Federal Credit Union, Bank of America, USAA, Flagstar, NBKC, Truist, Chase, PNC and PenFed. CNBC Select’s result summary names Chase, Rocket Mortgage and LoanDepot; its page could not be reviewed, so those names are limited evidence rather than a basis for detailed product claims.
There is also a date mismatch to keep in mind: NerdWallet’s headline says “October 2026,” but the page itself says it was last updated May 4, 2026. CNBC Select’s result says it was updated September 11, 2026. Neither should be read as a current quote sheet.
What NerdWallet says its comparison measures
NerdWallet reports reviewing 40+ lenders, assessing 8 categories and analyzing 11,000+ data points annually. Those are its methodology figures, not mortgage-market statistics. Its stated factors include cash-out refinance rates and fees, lender business and market share associated with cash-out refinancing, product accessibility, customer experience and rate transparency. Use the comparison as a way to generate questions for lenders, not as proof that its overall pick will be best for your circumstances.
Rank #2
Shortlist observations to verify
- Wells Fargo: NerdWallet selected it as its overall pick, citing cost-comparison ease and competitive cash-out refinance APRs among large banks.
- Navy Federal and USAA: Both are tied to military eligibility; NerdWallet says Navy Federal membership requires a military connection and lists USAA conventional and VA options.
- State Employees’ Credit Union: NerdWallet describes it as a regional option for people meeting membership criteria, with loans available in five states; it also notes the lender does not offer government-backed mortgages.
- Andrews Federal Credit Union: The comparison highlights rate-quote transparency and a float-down feature, while noting limited branch geography and accessibility.
- Bank of America: The comparison identifies it as a national bank and notes possible customer discounts; its online quote tool does not personalize by credit score, according to NerdWallet.
- Flagstar and NBKC: NerdWallet cites low average APRs for Flagstar while flagging corporate restructuring and servicing changes. It describes NBKC as an online lender with VA and FHA cash-out options and phone-centered support.
- Truist, Chase, PNC and PenFed: NerdWallet notes that custom quotes or preapproval may require human contact for Truist; Chase applicants may need an account or to speak to a home loan expert before applying online. It also flags geography or contact requirements for customized quotes at PNC and PenFed.
These are secondary editorial observations, not a substitute for confirming current availability and terms with each lender. Credit-score figures listed on lender pages are not approval guarantees: underwriting and overlays can vary by lender, state, property and loan type.
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Contact multiple lenders and request current written Loan Estimates built around equivalent assumptions. Fannie Mae’s consumer guidance also recommends contacting multiple lenders because terms differ. Keep the property value, requested loan amount, occupancy, credit assumptions, rate-lock period, loan term and cash-out target consistent. If those inputs differ, the quotes may not be directly comparable.
Compare the economics
- Rate and APR: Review both, and note whether discount points are included in the quoted terms.
- Fees and financed costs: Account for lender fees, third-party closing costs, prepaid items and any costs rolled into the balance.
- Net cash to you: Start with the new loan amount, then account for the mortgage payoff, liens, fees, escrows and other amounts paid at closing.
- Total repayment: Compare the new payment and the projected total interest, while considering how the new term changes your payoff timeline.
Check access and service
- Confirm the lender serves your state and handles your property type, occupancy and requested loan amount.
- Ask whether the quote is personalized, and have the lender spell out the assumptions, points and fees in writing.
- Check which loan types are available for your situation, including whether an agency or government-backed option applies.
- Ask what documentation and underwriting steps remain, what support is available during closing, and who will service the loan afterward.
- Check membership rules before spending time on an application to a credit union or other membership-based lender.
Eligibility rules are not the same as lender approval
Fannie Mae’s Selling Guide sets rules for loans delivered under its guide; those rules do not guarantee that a lender will offer or approve a particular loan. Under the guide, an eligible cash-out transaction can pay off existing mortgage loans with a new first mortgage secured by the same property, or create a new mortgage on a property without an existing mortgage. An existing first mortgage being paid off generally must be at least 12 months old, and at least one borrower generally must have held title for six months before disbursement.
The guide lists exceptions, including documented inheritance or legal award, qualifying delayed financing and certain ownership structures. It permits proceeds to pay the existing first mortgage, closing costs and prepaid items, subordinate mortgage liens, or provide cash for other purposes. Applicable loan-to-value limits and credit-score conditions depend on the Eligibility Matrix and underwriting method, so there is no single cap that applies to every borrower and property. Freddie Mac also describes a special-purpose option for certain co-owner buyouts. A lender must confirm whether a specific product and transaction qualify.
Quick Recap
Best Value
Questions to ask before choosing
- What are the rate, APR, points, lender fees and estimated third-party costs for the same loan assumptions?
- How much cash will I receive after the mortgage payoff, liens, closing costs, prepaid items and escrows?
- What will the new payment and loan term be, and how will they change my payoff timeline and total interest?
- Is the quote personalized and in writing, and what assumptions or conditions could change it?
- Does the lender serve my location and offer a loan type that fits my property and eligibility?
- Who will handle my application and closing, and who is expected to service the loan afterward?
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
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