10 Biggest Cash-Out Refinance Lenders Helping Homeowners Tap Record Home Equity

A cash-out refinance can convert your home equity to cash. And it could be a fantastic time to do just that. ICE Mortgage Technology estimates that homeowners with mortgages are sitting on an average of $206,000 in tappable equity. That could translate to a college education, a home addition, accessory dwelling unit construction, or another financial goal.

But who are the best cash-out lenders? Not all providers are the same – some are more likely to offer great rates, a painless application process, and top-notch customer service.

In some mortgage shoppers’ books, bigger is better. That’s why we've compiled a list of the ten biggest cash-out refinance lenders by the number of loans originated in 2023.

Check your cash-out eligibility with a lender. Start here.

Biggest Cash-Out Refinance Lenders

The ten biggest cash-out refinance lenders for owner-occupied homes accounted for nearly 47% of all cash-out refinances last year. These mortgage companies may not provide the lowest quotes in every situation, but they’ve certainly established themselves as the largest cash-out refinance lenders for a reason.

Home Mortgage Disclosure Act (HMDA) data from the Consumer Finance Protection Bureau (CFPB), accessed via PolygonResearch.com HMDAVision, May 13, 2024.

1. Rocket Mortgage

Rocket Mortgage is the nation’s biggest cash-out refinance lender, leading the pack by a considerable margin. Their 2023 originations accounted for a whopping 22% of the total cash-out refinance market, with over three-and-a-half times more loans issued than the second-largest lender.

Their secret? It may be the company's position at the forefront of mortgage tech. Their recently announced AI-powered Rocket Logic platform utilizes more than 10 petabytes of proprietary data to streamline the cash-out refinance process; the system has reportedly helped Rocket Mortgage reduce closing times by 25% since 2022.

2. United Wholesale Mortgage

Ranking second with about 6% of all cash-out refinances, United Wholesale Mortgage (UWM) is a major wholesale lender with a nationwide network of independent mortgage brokers. Unlike most other lenders on our list, they don’t deal directly with consumers.

While UWM may be second in the number of cash-out refinances, with 35,992, the company ranked first in total mortgages originated. According to their website, United Wholesale Mortgage offers conventional cash-out refinances with a credit score as low as 620 through their mortgage broker partners.

3. Nationstar Mortgage

Nationstar Mortgage ranked third in 2023 with a total of 22,006 cash-out refinances originated. While the company primarily operates under the relatively new Mr. Cooper brand name, Nationstar has been in the mortgage market for over 25 years. Over that time, they've served more than 4.1 million homeowners, according to their website.

Cash-out refinances were Nationstar Mortgage's primary focus in 2023, comprising nearly 78% of their total (28,244) issued loans.

4. PennyMac

Since its founding in 2008, PennyMac boasts having worked with more than one million homeowners. When it comes to cash-out refinances, the company comes in fourth, with 2.95% of the market last year.

PennyMac was ranked 20th in total mortgage originations in 2023; however, they saw the fifth-largest year-over-year decline on that list. This was especially true for their "rate and term" no-cash refis, which dropped 79% from 2022.

Find your cash-out refinance lender here.

5. LoanDepot

LoanDepot is a direct lender that, according to its website, has funded more than $275 billion in mortgages since 2010. In 2023, it was the fifth largest cash-out provider, originating 17,074 loans.

LoanDepot has implemented its proprietary platform, “mello,” which simplifies the cash-out refinance process by directly verifying employment, income, and assets. The company boasts that mello lets borrowers close their mortgages in as few as eight days.

In addition to 5th place for cash-out refinances, LoanDepot ranked 10th biggest mortgage originator and 8th biggest FHA lender for 2023.

6. Freedom Mortgage

Freedom Mortgage works directly with consumers, as well as through a nationwide network of affiliated mortgage brokers. Since its inception in 1990, Freedom Mortgage claims to have helped more than 1.9 million borrowers.

On their website, Freedom Mortgage advertises VA and FHA cash-out refinances for homeowners with credit scores as low as 550. Conventional cash-outs are available for credit scores of 620 and above.

7. Flagstar Bank

Their website portrays Flagstar Bank as a regional financial institution with 419 locations (as of Q1 2024) across nine states. While you can apply for a cash-out refinance with Flagstar online or in your local branch, the company also works with a team of over 3,000 third-party loan-originating brokers.

One unique aspect of Flagstar Bank’s home loan program is that they advertise mortgages with a term of up to 40 years.

8. Newrez

Founded in 2008 as New Penn Financial, Newrez offers cash-out refinances nationwide through a network of third-party brokers. It also attracts borrowers through its retail locations and website as a direct-to-consumer lender. In 2023, Newrez closed a total of 9,244 cash-outs across all channels.

Newrez has grown in recent years through industry acquisitions like Caliber Home Loans and Computershare Mortgage Services. Earlier this year, Newrez announced its AI initiative, partnered with Microsoft's Azure OpenAI Service, aimed at delivering the "best-in-class mortgage and homeownership experience."

9. AmeriSave

Atlanta-based AmeriSave has financed nearly 750,000 mortgages, totaling $130 billion in home loans, since its founding in 2002, according to the company's website.

AmeriSave offers loans in every state except New York and boasts an average closing time of 31 days on cash-out refinances. Conventional cash-out refinances are advertised for credit scores of 620 and above, while FHA and VA cash-out refinances only require a score of 600.

10. Huntington National Bank

Huntington National Bank has retail locations across 11 states, with the most robust presence throughout the Midwest. According to their website, Huntington has over 1,000 local branches and a reported $194 billion in total assets.

In addition to rounding out the top 10 biggest cash-out refinance lenders, Huntington National Bank ranked 16th for total mortgages originated in 2023.

Why Use a Cash-Out Refinance?

A cash-out refinance allows you to replace your existing mortgage with a larger one and receive the difference, minus closing costs, as a lump sum to use however you prefer.

The most common reason borrowers opt for a cash-out refinance is to fund home repairs or improvements, but you can also use your built-up equity to:

• Consolidate high-interest credit cards

• Purchase a second home or investment property

• Pay off an auto loan

• Wrap in a second loan or HELOC balance

• Eliminate student loan debt (you may even qualify for lower rates)

Cash-Out Refinance Programs

Most large lenders offer an assortment of cash-out refinance programs designed to fit different types of homeowners. The three most common that you'll encounter are:

Conventional Cash-Out Refinances

Conventional cash-out refinances follow the guidelines established by Fannie Mae and Freddie Mac. Borrowers will need a credit score of at least 620 to qualify. However, the cost for homeowners on the lower end of the credit spectrum will likely be higher than with other cash-out refinance programs. Conventional cash-outs let you tap up to 80% of your home's equity.

FHA Cash-Out Refinances

Designed for homeowners with less-than-perfect credit, FHA cash-out guidelines allow you to qualify with a credit score as low as 500. Most lenders, however, have their own higher minimums. As with conventional loans, an FHA cash-out refinance lets you borrow up to 80% of your property's current appraised value. So if your home is worth more than just a few years ago, you may be eligible for a substantial amount of cash.

VA Cash-Out Refinances

VA cash-out refinances are available to current and former U.S. military members with eligible service history. VA guidelines set no minimum credit score, although most lenders will have score requirements ranging from 580 to 620. With a VA cash-out refinance, you can withdraw up to 100% of your home's current value, although many lenders opt to cap loans at 90%.

Is Now a Good Time to Consider Cash-Out?

The best time to do a cash-out refinance is when you can simultaneously lower the interest rate on your loan. But most homeowners have interest rates much lower than what’s available today.

However, if you need to access a large amount of funds, it may still be worth taking a higher rate on a cash-out refinance.

As mentioned, homeowners have access to over $200,000 in home equity on average. It could be wise to use a fixed-rate cash-out refinance rather than an adjustable HELOC.

Rates are down from their 2023 peaks. If you've purchased your home since mid-2022, you may be able to qualify for a cash-out refinance at a rate comparable to or lower than what you currently have. This is especially true for homeowners who have since significantly improved their credit score or built considerable equity in their property.

Find the Best Cash-Out Refinance Lender

We've covered the ten biggest cash-out refinance lenders by loan volume, but even though they account for almost 47% of all cash-out refis, there are plenty of other great mortgage providers out there. The best cash-out refinance lender for you may even be a lower-volume originator.

If you're ready to explore your cash-out options, check today's refi rates and apply for quotes from a few of the top cash-out refinance lenders.

See if you're eligible for a cash-out refinance.