Mortgage Loans

A mortgage loan is a targeted long-term home loan, which becomes collateral for this loan. Also, the collateral may be real estate owned by the borrower. In simple words: you sign a mortgage agreement, receive money, pay the creditor the amount indicated in the agreement every month. Real estate, which you gave as collateral, falls under the mortgage. If the contract is violated by the client, the bank becomes the owner of the property and can sell it in order not to be at a loss.
Today we will review three large banks in the US that can offer you a mortgage loan: Capital One, Bank of America, and Cardinal Bank.

Capital One

Founded in 1988 and headquartered in Virginia, this bank offers mortgage loans to residents of the USA and other countries.

Advantages

  • Competitive interest rates. A borrower with excellent credit score buying a $250,000 home with a $50,000 down payment and a 30-year term, the interest rate will be 4.13%, which is a fairly low interest rate among interest rates offered by other major loan companies in the USA;
  • Relatively low closing costs. The bank charges closing costs of 2-5 % of the total home price, which is relatively low in the lending industry;
  • Mobile App. The company has a convenient mobile app which allows borrowers to view and manage their home loan from their mobile device.

Disadvantages

  • High credit score required. Capital One has established its minimum credit score requirement at 660, which is a very high requirement when compared with other banks;
  • Limited loan options. While many other top name bands offer various types of mortgages, this company only offers two options: adjusted rate mortgages and fixed rate mortgages. This greatly limits the options of the borrower.

Bank of America

Bank of America is one of the largest banks in the United States. Their home loan options are more diverse, they include mortgage loans (fixed-rate mortgages, adjustable-rate mortgages, jumbo loans, VA loans, FHA loans), and home equity loans mortgage refinancing.

Advantages

  • Origination fee discount. Clients who participate in the bank’s Preferred Rewards program can get a discount on their origination fee. The discount is individual and can range from $200 to $600;
  • Low closing costs. Bank of America charges closing costs of 3-4 % of the total mortgage amount, which is fairly low when compared to costs charged by other top name companies;
  • Special terms. This bank offers a special mortgage for those with modest incomes who are unable to make a large down payment. The bank offers a competitive fixed-rate home loan with a down payment of only 3%, without mortgage insurance;
  • Mobile App. The company offers a useful mobile app for all mobile devices. Clients can use this app to view and manage their mortgage, access various company tools and resources.

Disadvantages

  • Undisclosed Information. A minimum credit score requirement is not disclosed anywhere on the site, making it difficult for potential clients to have an idea of whether or not they are eligible for a mortgage with this bank.

Cardinal Bank

Cardinal Bank offers to buy a home or refinance an existing home with the help of the lending specialists at George Mason Mortgage, LLC, a subsidiary of this bank. They guarantee to help borrowers navigate through the lending process and provide the option that best suits their needs. The bank offers

Advantages

  • A wide variety of mortgage loan programs. Customers can opt for Fixed-Rate Mortgages (including traditional conforming loans, FHA loans, VA loans and jumbo programs) that provide you with the security of a steady payment for the life of your loan. They also offer shorter terms for those buyers who can afford a higher monthly payment and want to repay off their mortgage in 15 or even 10 years. You can also qualify for an Adjustable-Rate Mortgage that usually comes with a low initial interest rate that can increase after the specified period. Initial fixed periods can last three, five, seven and ten years;
  • Special programs. Cardinal Bank offers many special programs for first-time homebuyers. These options include VHDA program, FHA and VA options. They also offer a special FHA 203k program that allows customers to buy and renovate their home with one loan;
  • Refinancing options. They can help you lower your interest rate and/or your payment in some cases.

Disadvantages

  • Limited locations: You can only apply for a home loan if you reside in Ohio, Maryland, Pennsylvania, or West Virginia;
  • Undisclosed rates and terms. Loan rates and fees are not specified anywhere on the website. To find them out, you need to call the phone numbers that differ for each state. A minimum credit score requirement is not disclosed either.

Verdict

Capital One Bank offers competitive interest rates, affordable closing costs, and a convenient mobile app. However, their home loan options are very limited and its minimum credit score requirement is rather high.

Bank of America also offers competitive interest rates, affordable closing costs, and a convenient mobile app. Additionally, clients who participate in the bank’s Preferred Rewards program can get a discount with a home loans purchase.

Cardinal Bank offers a rich selection of home loan options but has a limited availability: only residents of 4 states can apply for a mortgage loan. Besides, unlike other banks, they do not disclose loan rates and fees. This means you will have to spend more time to find out these details by calling their representative.

Capital One Bank of America Cardinal Bank
Interest Rate 4.00% 4.00% unknown
APR 4.29% 4.29% unknown
Monthly Payment $1,291 $1,077 unknown