Important Information About Rates
To provide our clients with quick, reliable quotes, we make some assumptions and sometimes use “best guess" estimates in our examples. If your situation does not match what is shown, that does not necessarily mean that you will not qualify for a loan.
To learn more about what options may be available to you or to obtain a more personalized quote, please call us at 800-968-5844 or email us to connect with one of our expert Loan Consultants.
Assumptions
- Rates are shown for a 30-day lock period.
- Unless otherwise indicated, rates apply for a primary residence.
- Unless otherwise indicated, your credit score is 780 or higher.
- You will escrow property taxes, homeowner’s insurance, and—if required—flood insurance.
- For Veterans Affairs (“VA”) loans, the APR calculations assume: (1) Purchases: 100% loan-to-value ratio (“LTV”), first-time VA loan applicant, (2) Regular refinance: origination as Interest Rate Reduction Loan (IRRRL), (3) Cash-out refinance: prior use of a VA-backed loan.
- For FHA loans: (1) Purchases and regular refinances: 96.5% LTV, (2) Cash-out refinance: 80% LTV.
Representative Examples
Representative example for a $200,000 30-year fixed rate loan at 5.000% (5.000% APR) would result in 360 equal monthly payments of $1,073.64. Your monthly payments will be higher when you add in escrow payments for property taxes and insurance.
Representative example for a $200,000 7/6 ARM at 5.375% (4.34% APR presuming SOFR is 0.61848) would result in 84 monthly payments of $1,119.94. After 84 months, the interest rate and monthly payments are subject to increase. The interest rate may adjust semi-annually up to a 5.00% cap, with a lifetime 5.00% cap. Based on these caps, the maximum first adjusted rate for this loan would be 10.375%, with a maximum monthly payment of $1,810.81. The maximum lifetime rate would be 10.375%, with a maximum monthly payment of $1,810.81. Your monthly payments will be higher when you add in escrow payments for property taxes and homeowner's insurance.
Illustrated Savings
Industry Costs
In any scenario where we show savings or competitor prices, the savings shown are an estimate based on cost comparisons with other lenders, using official Loan Estimates, settlement statements, and/or publicly available data. Industry costs are based on averages. As a result, other lenders’ actual fees may be lower or higher than the fees illustrated.
Upfront Fees
As described below, in some circumstances, an upfront fee may apply to your loan. These upfront fees, to the extent they apply, are not charged by the secondary market—not by CapCenter—and passed on to you at cost.
- An upfront funding fee may apply for VA loans. Often, this fee can be financed into the loan amount.
- The upfront payment of mortgage insurance may be required for FHA loans. Often, this can be financed into the loan amount.
- An upfront escrow waiver fee may apply if you do not escrow property taxes, homeowner’s insurance, and—if required—flood insurance.
- Typically, our advertised rates are adjusted to cover loan-level pricing adjustors (“LLPAs”) charged by the secondary market, to the extent they apply. However, in some circumstances—often when several adjustors apply—rates cannot be sufficiently adjusted, and an upfront fee will be charged. Applicable scenarios include: investment properties, second homes, condominiums, manufactured homes, 2-4 unit properties, the subordination of an existing loan, a credit score of 780 or below, a loan-to-value ratio (“LTV”) of 30% or higher, cash-out refinances, and adjustable-rate mortgages (“ARMs”).
Lender Credits
Several of our Product Offers include savings in the form of Lender Credits. Any offered lender credit is subject to final lender approval and:
- Typically cannot be used to cover any part of the down payment
- Cannot be used to meet cash reserve requirements
- Is subject to other restrictions if you choose FHA or VA financing
Lender Credits often may be use toward:
- Government recording fees and transfer taxes, to the extent they are applicable to your transaction
- The cost of your first year’s homeowner’s insurance premium
- Escrow deposits for the future payment of homeowner’s insurance and property taxes
- Discount points to decrease your interest rate
- The cost of any general inspections if paid at closing
- Any other fees which have not already been covered by a third-party
CapCenter’s experienced mortgage team can help you determine how to best use available credits to meet your goals.
CapCenter Loan Process
Good Faith Deposit
Your Good Faith Deposit is simply an assurance that you will continue with your CapCenter loan. When you close, you get it back in full.
CapCenter requires the upfront payment of a Good Faith Deposit to cover any loan costs incurred by CapCenter in the unfortunate event you do not close. The money would be used to cover any costs incurred by CapCenter associated with the processing of your application, including but not limited to the cost of the appraisal, fraud report, credit report, rate lock or cancellation fee. If CapCenter does have to use some of the deposit money, any overage will be refunded to you. If you close on your loan, you will receive the full amount back before closing.
You will not be asked to provide a Good Faith Deposit until after you have signed a Commitment Offer. Your Commitment Offer outlines the CapCenter loan process and sets expectations for both CapCenter and you. Refer to your Commitment Offer for complete details about your Good Faith Deposit.
Locking Your Rate
Finding and locking the best rate is easy with CapCenter. Any rates displayed on our site are for a 30-day lock period.
To lock your rate, we need to determine that you are credit approved. This does not mean a full underwriting of your loan but does include some preliminary steps. Typically, we can get this done with a quick review of your credit, income and assets. We will then ask you to sign a commitment offer, which confirms your intent to proceed with a CapCenter loan. Once that is signed and returned and you have paid your Good Faith Deposit, your loan consultant can request a rate lock on your behalf.
Lock Extensions
When you lock your interest rate, there is an expiration date on that lock. Typically, this expiration is 30 calendar days after you lock the rate. You can extend, but there are often fees attached to lock extensions. The amount of these fees varies depending on the market. Typical charges are 0.125% of your loan amount for a 7-day extension, and 0.250% of your loan amount for a 15-day extension. Depending on the reason for extending the lock, you may or may not be responsible for these fees.
Your CapCenter Loan Consultant will monitor your upcoming lock expiration date and can extend your lock, when needed. If there is a foreseeable delay, your dedicated Loan Consultant will talk through your lock extension options with you. If you decide you would like to request a rate lock extension for any reason, contact your Loan Consultant to discuss your options and associated fees.
Most CapCenter loans close within 30 days of interest rate lock, so chances are you will not even need to request one. To relieve some of the stress that can sometimes come with a 30-day rate lock, CapCenter offers extended locks designed to allow plenty of time for new construction or more complicated transactions.
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