As we near closer to retirement age or are already in the middle of enjoying it, we tend to take a lot more notice of our financial situation.
Refinancing a mortgage is something that most people will consider during their lives when looking at their finances, but doing so at retirement age comes with its own challenges and benefits.
Seniors or retirees looking for the best refinance lenders might find it hard to navigate the market and find a financial institution that can actually be helpful.
Considering your money has never been more important than it is at retirement, you want to find the best home refinance rates and a qualified professional who deals with this exact situation.
To help steer you in the right direction, we’ve assembled this buying guide that shows you five different options for the best refinance companies and those that deal specifically with retirees and seniors.
By comparing what each of them offers and giving you some more information about how it all works, we hope to make the decision easier for you in the long run.
There are plenty of pros and cons to weigh up before you decide to refinance your mortgage during these later years of life, but that doesn’t mean it won’t be worth the effort.
With our help, you’ll be able to find the best bank to refinance mortgage and get plenty of information about the process so you can get the most out of your retirement funds.
Our Recommendations for the Best Refinance Lenders
There are seemingly hundreds of options out there all claiming to be the best mortgage refinance companies but not all of them can stand behind that claim.
For seniors and retirees, there’s a specific set of criteria you should look for in a lender if you plan on refinancing your mortgage, and we’ve got our top five recommendations for the companies that can actually fit that bill.
Best Refinance Lender: Rocket Mortgage
The world is definitely changing, and the same goes for the world of finance, so if you want a completely digital lender that still offers everything a physical branch of a bank can, our number one recommendation is Rocket Mortgage.
This fully digital lender specializes in refinancing mortgages and offers everything you’d expect from a non-bank lender, with lots of happy customers who are nearing retirement age.
On their website, you can see their full offering, with their main two services being new mortgages and refinancing.
Your options for refinancing include shortening the term of the loan, getting access to more cash, or lowering your payments, so there are plenty of goals to choose from depending on what you need.
The best thing about this lender is their efficiency, and they’re able to tell you within minutes if you’re able to qualify for refinancing by using some information like credit score and existing financial information.
They can pull up data from various financial institutions and government organizations and give you an instant answer on your eligibility.
This makes it great for just finding out what you’re capable of and what fees and charges might be included if you take the plunge, without actually committing to anything.
Because this is a digital lender, they’re able to pass on the savings from not having physical banks directly to their customers.
Provided you’re comfortable in the digital world this is a huge benefit to be enjoyed and one that will help you save even more money.
If you need to, you can still speak to a customer support agent but most of the queries and applications can be done through their website without needing to.
Rocket Mortgage is a fully digital lender which means all of your communication will be done over the phone or on the computer or app.
While this definitely makes it more efficient and easier to access wherever some people might not appreciate the full digital experience.
Although they offer on-demand customer service you do miss the face to face aspect that many people look for when they’re trying to find a bank.
The whole process of applying for refinancing or getting more information is made pretty easy with Rocket Mortgage.
You go to their website, select “refinancing” and then choose the goal that best suits you like lowering the monthly payments or gaining equity.
From there, you put in your home address and it will give you a quick evaluation of your property and financial situation, so there’s no waiting around.
Their mortgage refinance rates are considered some of the best, but in order to find out yours, you’ll have to put in specific information.
This means everyone is treated on an individual basis so seniors or retirees with enough income or other assets will get more favorable rates than others, so it’s truly tailored to your own circumstances.
In terms of ease of use and efficiency, Rocket Mortgage is definitely our choice for the best place to refinance mortgage we’ve found.
SEE ALSO – A Complete Buying Guide on 4 wheel walkers with seat
Features
- Type: Digital lender
- Min. Credit Score: 620
- Min. Down Payment: 3%
- Customer Support (rating 1-10): 7
- Online: Yes
- National / Regional: National
Lenda
If you’d rather do business with a lender who you can meet in person and live in one of the areas that they service, Lenda is a popular choice for refinancing.
This financial institution’s headquarters are in San Francisco but they have a few regional branches in places like Arizona, Colorado, and California.
They offer standard mortgage options along with refinancing and are better suited to customers who have a really good credit score and reliable history.
Lenda offers only conventional loans so their range is lacking compared to some, but if refinancing is what you’re after then this is one of their specialties.
Their loans have higher standards which means you need to be above average as a customer, and they have been known to deal especially with retirees and seniors who can prove a solid history.
Although it’s a little harder to qualify what they’re able to offer you is miles above other banks, so it’s perfect for people who can show that their debt to income ration is solid and so is their credit history.
The interest rates offered by Lenda vary quite a bit and it will depend on your personal circumstances as to what rate you qualify for, but in general, they’re known as some of the most competitive.
All of their rates are fixed rated and no variable options to be found, but this can work in your favor depending on your financial situation.
You can choose from a 10 to 30-year refinancing loan, going up in increments of five, which makes it easier to tailor one exactly to your needs.
Their refinancing options make up a huge portion of what they do but you’ll require a little more in order to qualify, which can be seen as a negative to some.
Compared to standard mortgages where you need a credit score of 620, to make you more favorable for refinancing as a retiree you’ll have to prove your score is much higher.
You’ll also need proof of reliable and steady income that can match the debt you’re refinancing.
They have a few terms options for refinancing loans and the choice of cash-out refinancing as well, but only for approved customers with seriously good credit.
One area where Lenda is lacking is through their online services, which is a shame to see in the time of modern banking.
If you’re a retiree who likes to use their computer to do their own research or check out the website and comparison tools that a lender offers, you’ll probably be disappointed.
Error messages were common and there wasn’t a whole lot of data available online, so speaking to an agent is the safer approach.
If you’d rather a bank with a personal touch and aren’t too fussed about the digital side of finance and customer support, Lenda is one of the top choices.
This regional bank is great for people who have a solid credit history and genuine goals for refinancing during retirement, so as long as you can meet their lengthy criteria you’ll find them one of the most thorough in terms of what they can provide.
Features
- Type: Mortgage Lender
- Min. Credit Score: 620
- Min. Down Payment: 3%
- Customer Support (rating 1-10): 7
- Online: Yes
- National / Regional: Regional
Quicken Loans
As one of the larger banks in terms of the types of loans they offer, Quicken Loans is known as one of the better choices for refinancing mortgages.
The company has won countless awards for customer service and have a high tech online offering including instant applications and information at your fingertips.
For seniors and retirees specifically, they have a wealth of information and calculators available to use, but some might find their restrictive eligibility criteria hard to get past.
The speed of service is one of the best features of this bank and they’re able to instantly access information on your financial history to give you a fast answer about your options.
If you’re looking at refinancing they can tell you within minutes what’s possible, and as long as you meet their lending criteria with a credit score of 620 you should be in luck.
Their refinancing options are pretty hefty and they have a complete section on their website dedicated to these types of mortgages with a lot of information you can read through.
They go through many options for why you might want to refinance including lowering payments or shortening the term of your loan, and they even have a special refinancing calculator that shows you the rates and payments you might be eligible for.
Although they have a lot of great points, there are some areas where they fall flat.
They have no offering of home equity loans and they are pretty strict on what they look at for your income.
They won’t consider alternative credit data so you have to be able to prove reliable and steady income to be eligible for refinancing and there’s not a lot of wiggle room.
Quicken Loans is consistently rated a top performer in terms of their customer service, and although a lot of their features are available online you do have the option to speak to one of their mortgage advisers.
However, if you prefer to meet in person you’ll be out of luck as it’s just not possible, and this can be a major disadvantage especially for retirees who prefer to do things the normal way.
This bank seems to be undergoing a merger with Rocket Mortgage that should be finalized in the next few years, but for now, they are still operating on their own.
However, this merger and their position as a top mortgage lender for over 30 years gives them competitive rates and lots of options for borrowers, especially when it comes to refinancing.
At last glance, their fixed mortgage rates for a 15-year loan sits at around 3.375%, but of course, your personal circumstances could alter this somewhat.
Quicken Loans has the advantage of being able to offer nonconservative loan types and they have a huge focus on refinancing, but obtaining eligibility to borrow is harder than others we’ve reviewed if you’re a retiree.
They don’t offer any face to face service but their customer support and online features are more than enough to make up for this fact.
As long as you can meet their criteria, Quicken is one of the best refinance mortgage brokers that deal with these special types of loans.
SEE ALSO – How to select the best Walk-in tubs for seniors
Features
- Type: Mortgage Lender
- Min. Credit Score: 620
- Min. Down Payment: 3%
- Customer Support (rating 1-10): 8
- Online: Yes
- National / Regional: National
J.G. Wentworth
JG Wentworth is a massive financial services organization who deals with a lot more than just mortgages.
Their original company was all about structured settlements and annuities but today they have a huge selection of mortgage and lending options available.
Their main point of pride as a brand is that they offer loans to veterans, which not all institutions do, and it shows that they can be more flexible in their lending criteria which works in the favor of retirees and seniors.
In terms of refinancing loans, they have a simple walkthrough calculator that you can use to assess your eligibility and give you a proposed interest rate and loan term.
This process couldn’t be easier and they promise that all of their fees and rates are as you see them, so there’ll be no points added later down the line or secret costs that you weren’t aware of.
They require a credit score of 600 to apply so they’re more flexible than other banks in this regard and offer special loans for veterans.
If you’ve struggled to get acceptance with other lenders because of your status as a retiree or senior, they would a great place to try your luck.
JG Wentworth is pretty straightforward with their mortgage details which is refreshing to see.
Customers loved how everything was upfront and there were no hidden fees or changes in interest rates.
You can choose the “Get My Rate” feature for an honest look at what you’re eligible for and this rate will hold for 60 days so you can time to compare with others.
You’ll pay a flat $795 mortgage origination fee but there are ways to lower this, so it’s pretty clear from the get-go what you might be liable for.
The fact that JG Wentworth isn’t licensed in all states is a bit of a letdown and a disadvantage that not many banks have to face today.
Customers in New York, Nevada, Missouri, Hawaii, and Montana won’t be able to use their services, even online, so they’re really losing a large portion of their customer base by not being licensed in those locations.
As one of the more established financial institutions with a longer history, this was pretty shocking to find, but it’s hopefully something that will change in the future.
For everyone else though, you’ll get a fully digital application process that makes it easy to apply for a brand new mortgage or refinancing from the comfort of your own home.
From there, you’ll be able to check on your application online and get up to date information about how the process is going.
According to reviews, this service needs to be faster in getting updates, so you may need to call and follow up with their customer support.
Overall, JG Wentworth is a trusted name in lending and one that’s known for helping out borrowers who might otherwise be disadvantaged.
This is good news for retirees and seniors who have struggled to find help with refinancing anywhere else, provided you can show a steady and reliable income.
There’s no charge to use their online services and calculators to figure out exactly what you might be eligible for, and they promise that the rates they give their customers are totally upfront and honest.
Features
- Type: Financial Services
- Min. Credit Score: 600
- Min. Down Payment: 3%
- Customer Support (rating 1-10): 7
- Online: Yes
- National / Regional: Regional
Lending Tree
If you’d rather get loads of information on what the nation’s lenders can offer you in your specific situation and want to do it quickly and easily, an online mortgage broker like Lending Tree is the better option.
This is a completely online financial services hub that gives borrowers a one-stop shop to look at what’s out there in terms of finance and compare how the nation’s banks and financial institutions stack up against each other.
As a comparison tool, you can enter your data and see what everyone has to offer, so it’s great for getting an unbiased opinion on the market.
As Lending Tree is considered one of the largest online loan marketplaces in the world, it’s not surprising to see just how many options they offer.
You can clearly see what each lender offers and whether they can compete with the rest of the market, so if you want to get a comparison in the one place and not have to shop around separately, it can be done in a matter of minutes.
In addition to offering information on refinancing loans, there are plenty of other services that Lending Tree offers.
You can perform a free credit score check, apply for insurance, use mortgage calculators, and even enlist the help of credit repair services.
All in all, it’s a pretty comprehensive place where you could take care of all of your financial needs in the one spot if you wanted to make life easier for yourself.
Better yet, there’s no fee or charges to use the site, even if you end up applying for a mortgage through them, so having a free service like this is amazing.
Although there are some good points to using Lending Tree, it might not always be as upfront as you’d hope for in some instances.
You can get an idea of rates and even apply through various lenders from the one place, but some customers have found they’re offered better rates and given more options for refinancing and other loans when they deal with the bank or financial institution directly.
Using it as a guide would be the better approach, and from there you can contact each bank on your own.
Another negative that some users found was the amount of information required by Lending Tree during the search process.
Before you even reach the application stage or can see what loan offerings there are, you need to put in a lot of data about your personal circumstances and finances which can be offputting.
As a marketing lead generator, there’s also the chance that your information can be sold to a third party which isn’t ideal and may turn a lot of people off the site.
These negatives aside, it’s hard to get the amount of information and comparison data that Lending Tree has to offer which is why it’s such a huge success.
Rather than spending hours researching loans or seeing what each individual bank has to offer you can do it all in the one place, so if you’re time poor or just want to save yourself the effort, Lending Tree is a modern and efficient option for refinancing.
Features
- Type: Mortgage broker
- Min. Credit Score: N/A
- Min. Down Payment: N/A
- Customer Support (rating 1-10): 9
- Online: Yes
- National / Regional: National
FAQ About Refinancing Your Mortgage
Learning the ins and outs of the finance world including mortgages and refinancing them can be tricky enough, so when you’re dealing with retiree refinancing it’s even more difficult to comprehend.
To make matters easier, we’ve answered some of the most common questions retirees have about refinancing their mortgage to give you the basic information you need to proceed.
Can I Refinance My Mortgage If Retired?
There are many factors that a mortgage broker or lender will look at to determine whether you can refinance or not, and most of them have to do with your credit history and ability to make payments.
If you’re retired, you need to be able to prove that you have a steady stream of income that will allow you to continue to make repayments and they might look at other factors including your age and how likely it is that the loan will be repaid in full.
What Are The Cons Of Refinancing A Mortgage?
The pros and cons of refinancing your mortgage should be weighed up before proceeding, and although people usually refinance in order to save money, sometimes the fees associated with the process make it a less favorable option.
In addition to loan application and transfer fees, you might also experience negatives like a lot of paperwork or a low appraisal of your home from the lender.
Are There Special Mortgage Rates For Seniors?
Some banks and financial institutions offer special mortgage rates and contracts for seniors and retirees, but not all of them.
These loans might be for seniors who are still in the workforce or for retirees who are still able to prove a steady stream of income and apply for a mortgage period that will ensure they pay it off in full.
Can Over 65 Get A Mortgage?
Obtaining a mortgage over the age of 65 is quite difficult compared to your younger years.
A bank or financial lender needs to see that you have a steady income to make repayments and also that you will be able to make those payments for the life of the loan.
With mortgages usually being between 20 and 30 years, it may not be fiscally responsible for them to enter into a new agreement with someone over 65 years of age.
Can A Retired Person Cosign On A Mortgage?
Retired people will sometimes be able to cosign on a mortgage provided they can prove a steady stream of income.
Usually, to be eligible to cosign a mortgage you have to show regular and permanent employment with enough income to cover repayments should anything go wrong.
For this reason alone, it can be hard to get qualified if you’re retired and have no other source of income.
Should You Refinance Mortgage Before Retirement?
Many people choose to refinance their mortgage before they plan to retire in order to get the best value for their money and meet the changing financial situation.
It may be easier to refinance when you’re still able to prove an income rather than waiting until you’ve retired completely to see what your options are.
Why Should You Opt for Refinancing Your Mortgage?
The best reason for refinancing your mortgage is to save money, either from a dramatic reduction in interest rates or a better offer from another financial institution, or to use the equity in your home for another financial investment.
You should always weigh up the pros and cons in each situation to determine if you will be better off, as there are negatives to consider with the refinancing process as well.
When Retirees Should Not Pay Off Their Mortgages?
It doesn’t always make sense for retirees to pay off their mortgage in full, and there are some factors that could sway your decision either way.
Financial experts will usually advise to putting extra money away in a retirement savings plan rather than using it all to pay off a mortgage, as there’s the ability to earn interest from these types of accounts.
READ NEXT – Adjustable bed frame reviews for seniors.
Making Smart Financial Choices in Retirement
Choosing to refinance your mortgage when you’re retired is a pretty big leap to take, and one that requires a lot of research and analysis.
This decision won’t be right for everyone to make and it will depend entirely on your personal circumstances, but if you feel the pros outweigh the cons then there’s certainly a lot to be gained from refinancing.
With our help, you can access some of the top-rated financial lenders who specialize in refinancing for retirees so you can be sure you’re getting the best people for the job.
The difference that a quality financial lender or refinancer makes can be dramatic, so you want to be sure you’ve done your research to get the very best.
Retirement should be a time of relaxation and one where you’re not overly concerned about what your money is doing.
With a refinancing plan for your mortgage, you could take some of the stress off of your finances and make your money work harder for you than it did while you were employed, so it’s definitely worth considering this option for retirement.
ABOUT PENSIONS WEEK
Pensions week focuses on sound retirement strategies making aging easier for the seniors. Here you will find resources from senior housing and safety to money, health, investment and care, etc that may help you gain clarity around your retirement.
You might want to do some research about banks not giving loans to people over 65. It’s illegal to do this based on age alone.