Best Mortgage Refinance Companies That Include Free Insurance Options

For homeowners in the United States, refinancing a mortgage has always been one of the most powerful ways to lower monthly payments, reduce overall loan costs, and gain financial breathing room. But in 2025, a new trend has emerged that makes refinancing even more beneficial — lenders and insurance partners are now offering free or discounted insurance options as part of mortgage refinance packages.

This combination not only saves homeowners money on their interest rates but also adds a layer of protection for their most valuable asset — their home.

In this in-depth guide, we’ll explore how this new refinancing model works, which companies are leading the way, what to look for before applying, and how you can use this approach to maximize savings while maintaining strong financial security.

Why Refinance Now? The 2025 Housing and Mortgage Landscape

The U.S. housing market in 2025 continues to evolve rapidly. After several years of fluctuating interest rates and economic uncertainty, many lenders are aggressively competing for refinance customers.

According to data from the Mortgage Bankers Association, refinance demand in early 2025 has increased by over 30% compared to last year. This surge is driven by three main factors:

1. Interest rates stabilizing around 5.5% to 6%, making refinancing appealing again.
2. Rising home equity — homeowners now have more property value to leverage.
3. Bundled insurance promotions — lenders are including free or low-cost insurance to attract new clients.

These incentives have created an environment where smart homeowners can lock in better mortgage terms while also reducing or eliminating insurance costs.

The Concept of “Free Insurance” in Mortgage Refinancing

At first glance, “free insurance” might sound too good to be true. But in most cases, these offers are part of structured partnership deals between lenders and insurance providers.

Here’s how it works:

• The lender partners with a reputable insurance company to offer a limited-term free insurance plan (typically 6–12 months) to new refinance customers.
• The cost is covered by the lender as part of their marketing or acquisition expenses.
• After the free term ends, the homeowner can choose to continue with the same insurer, switch to a different provider, or even cancel coverage.

The insurance offered often includes:

• Mortgage protection insurance (covers your payments if you lose your job or become disabled).
• Homeowners insurance (protects against fire, theft, natural disasters).
• Life insurance linked to the mortgage (pays off the remaining loan in case of death).

This bundled offer allows you to refinance and protect your investment simultaneously — a major benefit in an unpredictable economy.

Benefits of Refinancing with Free Insurance Options

Combining refinancing and insurance into one strategic package has several financial and practical advantages:

1. Lower Upfront Costs: Since the insurance premium is free for the initial term, your upfront refinancing expenses decrease.
2. Immediate Financial Protection: You’re covered against unexpected events from day one.
3. Increased Approval Likelihood: Some lenders use insurance to reduce risk, which can make loan approval easier for moderate-risk applicants.
4. Consolidated Management: One lender, one bill, and one support contact for both loan and insurance.
5. Potential Long-Term Discounts: Many insurance providers offer loyalty or renewal discounts after the initial free term ends.

Top Mortgage Refinance Companies Offering Free Insurance Options in 2025

While dozens of lenders are experimenting with bundled offers, a few have established themselves as industry leaders. Below are some of the best mortgage refinance companies in the U.S. offering insurance-inclusive deals in 2025.

1. Rocket Mortgage (by Quicken Loans)

Rocket Mortgage remains the dominant player in digital home financing. In 2025, they’ve launched the “Rocket Protect” refinance bundle, which offers six months of free mortgage protection insurance to qualifying refinance customers.

Highlights:

• Fast online application and instant approval decisions.
• Free insurance coverage for up to six months.
• Strong customer service and nationwide availability.
• Transparent terms and no hidden fees.

Best for: Tech-savvy homeowners looking for a seamless online experience and reliable national lender.

2. Better.com

Better.com continues to disrupt the mortgage industry with no-commission lending and simplified refinancing. Their “Better Shield Program” includes free homeowners insurance for the first year when you refinance through select partner providers.

Highlights:

• No lender fees.
• Quick refinance approval (often within 48 hours).
• Free 12-month insurance policy for new refinance customers.
• Strong integration with digital tools.

Best for: Homeowners looking to save on both refinance costs and insurance premiums upfront.

3. loanDepot

loanDepot’s “Secure Home Refinance Program” includes free mortgage protection insurance for the first six months, covering job loss, disability, or death.

Highlights:

• Competitive refinance rates.
• Optional cash-out refinancing available.
• Excellent customer reviews and transparent pricing.
• Free six-month protection policy underwritten by top-tier insurers.

Best for: Homeowners wanting flexible refinance options with built-in safety coverage.

4. Guaranteed Rate

Guaranteed Rate is a highly rated refinance lender known for combining low interest rates with creative borrower benefits. Their “RefiShield Package” offers free homeowners insurance for one year through select national partners.

Highlights:

• Flexible terms from 10 to 30 years.
• Transparent rate comparison and fast digital closing.
• Free one-year home insurance coverage up to $1,000 in premiums.

Best for: Borrowers with high home values seeking premium refinance and insurance deals.

5. Wells Fargo Home Mortgage

Wells Fargo, one of the largest U.S. banks, has introduced promotional refinance bundles that include credit toward insurance premiums with select insurers.

Highlights:

• Established national presence and trusted brand.
• Multiple insurance partners, including Liberty Mutual and Allstate.
• Great for borrowers with existing Wells Fargo accounts.

Best for: Traditional borrowers who prefer in-person guidance and full-service banking.

How to Choose the Right Refinance Company with Insurance Benefits

Not all “free insurance” refinance offers are equal. Here’s what to consider before committing:

1. Duration of the Free Coverage: Some lenders only offer 3 months, while others go up to 12.
2. Type of Insurance Offered: Check whether it’s mortgage protection, homeowners, or life insurance.
3. Renewal Terms: Ensure the insurance won’t automatically renew at higher rates without your consent.
4. Loan Terms and Fees: Don’t let the insurance distract you from comparing core refinance features like APR, closing costs, and prepayment penalties.
5. Partner Reputation: Always research both the lender and the insurance company. Choose those with top financial stability ratings (A or higher).

Steps to Apply for Refinance with Free Insurance

Here’s a simplified process you can follow to secure the best refinance and insurance deal:

1. Check Your Credit Score: Aim for 700+ for the best refinance rates.
2. Compare at Least Three Lenders: Use online tools or mortgage brokers to get multiple quotes.
3. Ask About Insurance Bundles: Specifically inquire about free or discounted insurance offers.
4. Review Loan Disclosure Documents: Carefully read details about the free insurance coverage term and renewal options.
5. Lock in Your Rate: Once satisfied, lock your refinance rate to protect against market fluctuations.
6. Finalize and Enjoy Coverage: Complete your closing and activate your free insurance benefit.

Example: How Much You Can Save

Let’s take an example to illustrate potential savings.

Suppose you refinance a $400,000 mortgage from 7% down to 6%. That alone saves about $260 monthly.

If the lender also offers free homeowners insurance worth $100 per month for one year, you save an additional $1,200 during that period.

Total savings in the first year:

• $260 × 12 = $3,120 (refinance savings)
• $1,200 (insurance savings)
  Grand total: $4,320

That’s nearly a full month of mortgage payments — completely saved.

Important Legal and Financial Considerations

Even with attractive promotions, it’s essential to verify the legal and financial aspects of your refinance:

• Confirm Lender Licensing: Always work with lenders licensed in your state.
• Check Insurance Fine Print: Free coverage may have limitations, such as exclusions or capped benefits.
• Avoid Hidden Fees: Ensure that “free” insurance isn’t offset by higher closing costs.
• Consult a Financial Advisor: Especially if you have a complex mortgage or investment property.

Being cautious ensures that you truly benefit from the refinance and don’t fall for marketing gimmicks.

Tips to Maximize Your Refinance and Insurance Savings

To make the most out of this opportunity, follow these expert recommendations:

1. Refinance when your home value is high — greater equity often qualifies you for better terms.
2. Bundle policies after the free term ends to retain discounted premiums.
3. Review your insurance needs annually — adjust coverage as your financial situation changes.
4. Negotiate closing costs — lenders often reduce fees to close deals faster.
5. Monitor interest rates regularly — another drop could mean even more savings down the line.

The Future of Refinance + Insurance Bundles in 2025 and Beyond

The rise of digital mortgage platforms has accelerated innovation in lending. Artificial intelligence and predictive analytics now allow lenders to customize refinance and insurance bundles in real-time based on borrower profiles.

Industry experts predict that within the next few years, nearly half of all refinance offers will include some form of free or discounted insurance. This shift is transforming mortgage refinancing from a simple financial transaction into a comprehensive risk-management strategy.

Final Thoughts

In 2025, refinancing your mortgage doesn’t just mean securing a lower interest rate — it means rethinking how you manage financial protection for your home and family.

Choosing a lender that includes free or discounted insurance as part of a refinance deal can lead to thousands of dollars in combined savings, greater peace of mind, and a more efficient financial setup.

The key is to compare offers carefully, understand the terms, and choose the company that provides both the best loan value and the most meaningful insurance coverage.

For homeowners who take advantage of these dual benefits, the payoff can be substantial — lower payments, stronger protection, and a smarter, safer financial future.