At a Glance

Capital Center, LLC (doing business as CapCenter) is a licensed mortgage lender in Virginia, North Carolina, South Carolina, Maryland, and the District of Columbia. It waives almost all closing costs on loan amounts of $100,000 or more, saving borrowers thousands of dollars. CapCenter doubles up as a licensed real estate broker – meaning that once it’s approved you for a mortgage, it can also help find you a home.

Key Figures

Loan types: Purchase, Refinance

Loan products: Conventional, Jumbo, FHA, VA

APRs start from: 2.500%

Minimum credit score: 620+

Repayment terms: 10-30 years

CapCenter’s zero closing cost loans differentiate it from the competition. Many mortgage lenders let borrowers defer payment of closing costs, increasing their monthly payments. CapCenter actually waives these closing costs altogether – meaning there are no closing costs now and no closing costs later. According to CapCenter, the absence of any closing costs saves borrowers up to $5,892 for a $375,000 home purchase or $3,441 for a $300,000 mortgage refinance.

As mentioned, CapCenter is only licensed to do business in four states (VA, NC, SC, MD) as well as the District of Columbia. While CapCenter’s optional realty service is a plus, it is worth noting that this is offered mainly around urban areas (e.g. Washington DC, Richmond, Norfolk, Virginia Beach, Durham, Charlotte, Charleston). It isn’t available in many rural areas as well as in certain urban areas (incl. Baltimore).

How It Works

The best way to apply to CapCenter is with a combination of an online application and free phone consultation with a CapCenter loan agent. Note that the online application only shows you a generic, non-personalized rate. It then takes you straight to preapproval, which involves a hard credit query that impacts your credit score.

1. See your estimated rate. Fill out a short one-page form, including basic details such as: property location, purchase price, down payment, loan amount, preferred loan term and preferred loan program. At the end, you’ll see three estimated (non-personalized) rates: a base rate plus two optional rates that show you how much you can reduce your APR by paying down part of your loan early. Choose one of the options to go through to the preapproval form.

2. Preapproval. Consists of the following sections: basic personal info, basic property info, income, assets and liabilities, co-borrowers (if any), declarations and consent, and final details. At this stage, CapCenter will run a hard credit query and provide a preapproval letter that you can print out to show realtors and vendors that you’re serious about purchasing.

3. Call with CapCenter loan agent. Next, you can expect a call from a CapCenter loan consultant to discuss your personal options and provide you with additional information specific to your transaction. Once your loan consultant has verified that you’re eligible for the loan, you may request a 30-day rate lock.

4. Uploading documents. To finalize your application and get formal approval, you’ll need to securely upload any required documentation (e.g. income and tax statements) on the CapCenter online portal.

5. Closing. You’ll close at an agreed time and place with a CapCenter closing attorney and your real estate agent. If you use a CapCenter realtor, then they will come with a special gift.

Types of Loans

CapCenter finances purchasing or refinancing of primary, secondary or investment properties. A minimum credit score of 620 is needed in order to qualify for a conventional loan, although credit requirements may be lower or higher for other loan programs.

Purchase options include:

• Conventional Loan. Down payments as low as 3%, with 10-year, 15-year, 20-year, and 30-year repayment options.

• Jumbo Loan. For loans over conforming limits, with minimum down payment of 20% and 10-year, 15-year, 20-year, and 30-year repayment options.

• FHA Loan. Down payments as low as 3.5%, with 15-year and 30-year repayment options.

• VA Loan. For active-duty military, reservists and surviving spouses, with zero down payment and 15-year or 30-year repayment options.

Refinance options include:

• Conventional Rate-and-Term Refinance. For refinancing up to conforming limit, with maximum CLTV of 97%.

• Cash-Out Refinance. Alternative refinance that lets you cash out the difference between the new loan amount and what you owe on the home.

• FHA Refinance. Various refinancing options under FHA program, including FHA rate-and-term refinance, FHA cash-out refinance, and FHA streamline refinance

• VA Refinance. Various refinancing options for qualifying VA homeowners, including VA Interest Rate Reduction Refinance Loan (IRRRL) and VA-backed cash-out refinance.

Loan Features

Standout features of CapCenter’s mortgage offering include:

• Zero closing costs. For loan amounts of $100,000 or more, CapCenter will waive the following closing costs: origination fee, appraisal fee, credit report fee, flood certification, tax service fee, title search fee, lender title insurance (if provided by CapCenter), owner title insurance (if provided by CapCenter), survey (if required by CapCenter), wire fee, delivery fee, settlement agent fee (if provided by CapCenter or approved settlement agent).

• Realtor services (optional). CapCenter’s expert realtors will review historical sales data of homes in your target area and work to get you into a variety of homes quickly and on your schedule. Your CapCenter agent also has access to information on homes that aren’t on the market yet, which allows you to consider homes before others find them online.

• Approved inspectors. CapCenter has an approved list of inspectors that it is confident will provide detailed and thorough inspections of your potential property.

Rates and Terms

CapCenter’s interest rates are fairly similar to the competition. When you throw in the fact that there are no closing costs, the APRs look very attractive. CapCenter advertises fixed rates daily, and these can be customized according to your loan program, repayment term, and loan purpose. Adjustable-rate mortgages are offered, but ARM rates aren’t shown publicly.

Summary

Closing costs can cost you 2-6% of the price of your home, or even more if you choose to pay them off as part of your monthly payments. Fortunately, CapCenter will waive virtually all your closing costs – provided you take out a loan of $100,000 or more and live in Virginia, North Carolina, South Carolina, Maryland, or the District of Columbia. With the promise of several thousands of dollars’ worth of savings, CapCenter could potentially get your next mortgage or refinance off to a winning start.

Contact CapCenter

Founded in 1997, CapCenter is based in Glen Allen, Virginia. Customer service is available Mon-Fri, 7:30AM – 7PM, and Saturday, 10AM – 4PM (Eastern time, of course).

Email: customerservice@capcenter.com