Mortgage Blog

What Banks Have the Best Refinancing Rates?

There are several banks that offer low refinancing rates. Among these are Bank of America, Wells Fargo, and Chase. These high-profile banks are competing to meet your needs, and therefore, it will be up to the homeowner to choose wisely. The following are just a few examples of what each bank will bring to the table when it’s time for you to decide on a lender.

Bank of America

Bank of America is considered one of the top banks in the U.S. for mortgages, thus they will offer some of the best deals to keep their customers satisfied. For example, B of A makes it easier for customers to prequalify for a loan with their user-friendly online applications, which allows the consumer to send their documents through the bank’s website, sending necessary documents quickly.

When refinancing with B of A any information acquired will be via phone or in-person since their website does not allow for this type of communication. When refinancing, B of A requires a decent credit score, but a 620 is likely doable, and their refinance rates are contingent upon the type of refinancing the homeowner requests.

Currently, the 30-year fixed rate is 3.125%, where a 15-year fixed rate stands at 2.375%. It is obvious that the longer the term, the higher the interest rate, which means it is up to the consumer to decide what they’re willing to pay and how long.

Wells Fargo

Wells Fargo (30-year fixed rate: 3.375% interest / APR 3.459%) is another bank which provides refinancing, and with the reputation as leading the U.S. in mortgage lending, Wells Fargo can go above and beyond when helping their customers. One way they do this is by pairing up the homeowner with the loan which best suits their profile.

Some positive factors for refinancing with Wells Fargo include being able to convert a current loan, such as switching it from an adjustable to a fixed mortgage, as well as their refinancing rates, which are considered some of the best within the banking industry.

Wells Fargo also allows for flexible loans, which can help if monthly payments have become a burden, and you need to lower them or reduce the rates. If the consumer wishes to access their cash allowance through a refinance, Wells Fargo can help pull funds out of your home’s equity. Finally, Wells Fargo can help eliminate the FHA insurance, by providing consumers the ability to refinance via a conventional loan.

Subsequently, there are some negatives to refinancing with Wells Fargo. For example, through the refinancing process, the consumer will end up paying more with regards to interest rates, something few of us are happy to do. In addition, refinancing with Wells Fargo will force the homeowner to pay for closing costs as well as the origination fee, because when refinancing through this bank, they see it as starting a whole new loan, therefore, fees will accumulate as they would with an original mortgage.

Chase Bank

Chase Bank (30 year fixed 3.00% / 15 year fixed 2.125%) is another institution that offers refinancing to its consumers. As one of the biggest mortgage lenders within the U.S., it offers a variety of loans to consider, such as VA loans and even low-income loans. Chase also offers homeowners the option of putting whatever fees are acquired, back into the refinance, eliminating the need to pay costs upfront.

However, like the other banks there are positive and negative factors involved when refinancing with Chase. Some examples of the benefits include low-income loans, as well as down payments which are considerably lower than other banks. Secondly, Chase has branches in all 50 states, making it more accessible to homeowners of every walk of life. Like B of A, Chase offers prequalification and application via their website, making it easier and faster to provide necessary documents.

The main negative aspect of Chase, however, is its’ mobile app, which is deficient, compared to their full website. Similar to Wells Fargo, your credit score does not have to be perfect, and few negative marks don’t mean you’ll be disqualified from refinancing. Nonetheless, the better the score the better the chance of attaining this goal.

Something to understand in today’s refinance world is that private companies have now joined the market in offering refinancing options. These include Quicken Loans, Amerisave and Better.

Quicken Loans

Quicken Loans (30 year fixed 3.25% / 15 year fixed 2.625%) is considered to have the best customer service over any other lending entity or bank. They also offer all the tools necessary to begin refinancing on their website, making it more convenient. Some reasons Quicken Loans is so highly rated is of because their nationwide availability, their array of mortgage choices, and their online application. N

onetheless, there are some downsides to using Quicken Loans. They do not offer any USDA loans and all the customer service is via the internet, so if you’re interested in speaking with someone face to face, Quicken Loans may not be suitable for you.

Anerisave

Anerisave is another lender that utilizes online refinancing tools, making it faster and more efficient to refinance. Amerisave offers refinancing, with rates as low as 2.275%, but only on first mortgages, so if you are on your second or third mortgage, Amerisave would not work for you. Something that is substantial about Amerisave is that they will offer their consumers a matching rate, thus guaranteeing the best refinancing costs. Amerisave is the better lender if you are focused on lowering your interest rates, and if you want to make sure these lower rates will be guaranteed.

Better offers refinancing rates, which are considered some of the lowest available. Currently, their rates start at 2.750%. This low rate has some contingencies, however. For example, to lock in a 30 year fixed rate with Better, it is ideal if the consumer owns a single-family home and has an excellent credit rating. When attempting to refinance with Better, there are more hurdles to get over because of their low rates. They take into consideration the financial stability of the homeowner, including debt. Therefore, if someone has a mediocre credit rating and credit card debt, Better is not the lender for them.

With all of this information in mind, it is clear that banks are still very much involved in helping consumers refinance. However, private companies have begun competing with banks and offering deals that conglomerates like B of A, Wells Fargo and Chase does not provide. Therefore, if you’re interested in refinancing, the best advice would be to look at your personal bank, then other banks you’re not affiliated with…but keep in mind the options companies, such as Quicken Loans, Amerisave and Rocket have to offer, and you may be on your way to refinancing and making it a little easier to own a home.

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