There are many ways to find a home loan with a good interest rate and low closing cost that’s also easy to apply. When we refinanced our loan last year, when the rate was pretty low, we checked out websites like LendingTree.com to see what kind of offers we may get. Usually, when we look for a mortgage loan, we go to the local originators first because there are licensing issues and the local people know the local market better. Using websites like LendingTree.com or Bankrate.com, we can find lenders in the area that may not appear in the local newspaper’s real estate section. One of them through search is CapWest Mortgage, a direct lender that we have never heard of before but does have home loans with very competitive rates.
In case you are not familiar with CapWest, here’s a brief history of the company and products they offer.
CapWest Mortgage is a wholly owned subsidiary of Farmers Bank & Trust Company, a chartered bank located in Columbia County, Arkansas. CapWest is pretty new to us, but FB&T has a long history, going back to 1906 when it was created as a family owned bank. As a Fannie Mae direct lender, CapWest Mortgage, established in 1971 with its headquarter in Overland Park, Kansas, has the flexibility to offer multiple loan products to qualified borrowers at a lower cost, with no hidden fees or markups. Since CapWest has licenses to originate loans in all 50 states, it’s not a concern that we may not be able to get a loan from them.
Currently, CapWest offers a range of loan products to qualified borrowers, including 30-, 15- and 10-year fixed rate mortgage loans, 5/1 ARM, and a number of loan refinance products. Since CapWest is a prime lender, it requires borrowers to have good or excellent credits in order to obtain a loan from CapWest (it’s always a good idea to get your credit scores from all three bureaus before applying for a mortgage so you know whether you can get the best loan rates or not). Using their free online quote, I got current rates of our mortgage ($410K loan, in Northern Virginia) at different terms:
- 30 Year Fixed Rate: Rate 4.875%, Points 0.000%, APR 4.898%, Closing Fees, $6,999.83, Payment $2,169.75
- 20 Year Fixed Rate: Rate 4.500%, Points .000%, APR 04.531%, Closing Fees $6,999.83, Payment $2,593.86
- 15 Year Fixed Rate: Rate 4.000%, Points 0.000%, APR 4.039%, Closing Fees $6,999.83, Payment $3,032.72
- 10 Year Fixed Rate: Rate 3.375%, Points 0.000%, APR 3.431%, Closing Fees $6,999.83, Payment $4,030.36
- 5/1 Adjustable Rate: Rate 3.375%, Points 0.000%, APR 3.477%, Closing Fees $6,999.83, Payment $1,812.59
For 15-year fixed, the rate now is only slightly higher than the one we got last year at 3.925% APR. Through CapWest’s Home Path program, you will get low down payment and flexible mortgage terms, no mortgage insurance, no appraisal, and finance up to 97% of your loan, even when you credit may not be perfect. And once you become a customer, you will be a customer of CapWest for life, which makes you eligible for further discount if you refinance your mortgage with the lender. Benefits you can enjoy include:
- VIP Service
- Cheaper loan – $997 off every future transaction with CapWest Mortgage
- Guaranteed rates under the national average
- Peace of mind knowing you have the best possible offer without any hassle
- Streamlined process
- Less paperwork
- Work with a lender you know and trust
- Refer a friend, family member, or co-worker and they will receive 50% off our standard fees.
Furthermore, if you are a member of Costco, you can save more money with CapWest because it’s a Costco approved national lender, whether your membership is at Goldstar level or Executive level.
Lender Fees have been capped at $600 for an Executive members and $750 for all other members. In addition, the borrower will pay for what is typically called 3rd party fees, such as appraisal, title, and credit report. These fees vary based on the details of your loan. All out of pocket expenses, lender fees and closing costs will be discussed with you at the time of application.
If you are in the market for a home loan, whether it’s for new purchase or refinance, check out CapWest Mortgage, get a free quote and compare the rates with other lenders using comparison tools from LendingTree.com and see which lender has the best rate, lowest cost and terms that you are comfortable with. It’s always good to shop around.