Frequently Asked Questions

How do I know if I am able to refinance? We are happy to speak with you by telephone about your particular situation and make sure that you are a good candidate to refinance with CapCenter. The primary factors that we consider are your credit history and your loan to value ratio (the amount you are borrowing compared to the current value of your home.) We find that we are able to help most people and save them money every month on their mortgage payments, though it is best to speak with one of us to help determine if you are eligible to refinance. You may also schedule a visit to our office to speak with someone in person.

Should I select the 15 year or 30 year product? It really depends on what your goals are. With the 15 year, you will pay off the loan more quickly with less interest paid over the life of the loan. However, the 30 year requires a lower monthly payment.

What if my credit isn’t perfect? At CapCenter we work with people who have diverse credit histories. Once your application is submitted, one of our Loan Consultants can speak with you further about your credit history; however, our mininum credit score for a conventional loan is usually 680. The credit score threshold may be lower for an FHA loan.

I bought a house in the last six months. Can you refinance my current loan? If you are not taking any cash out of the transaction, then you are eligible to refinance your mortgage.

I refinanced with CapCenter earlier this year. Am I eligible to refinance again? Would the paperwork be the same? We love our past borrowers and appreciate your interest in doing business with us again. However, we currently have a seven month limit on refinancing. The seven month time period is measured from closing date to application date, so you may apply on the seven month anniversary of your closing date. Please call if you want us to expedite the submission of your application after the seven months.

Is it worth it for me to refinance? With a “Zero Closing Cost” loan from us, even a small interest rate reduction versus your current loan will save you thousands of dollars over the life of the loan. You could also benefit by reducing the term of your mortgage which would enable you to build equity in your home more quickly and save you quite a bit of interest over the life of the loan. You may also be able to eliminate any private mortgage insurance if your current loan to value is lower than 80%.

If my current mortgage rate is half a point higher, is it worth it to refinance? Definitely. The half point difference means saving money each month.

How much could I refinance and still have the same monthly payment or less? The free quote estimator on our website is a great tool for helping you figure out your monthly payments.

Will refinancing lower my current payment? This depends on the structure of your current loan and other factors. The free quote feature on our website will show you the monthly principal and interest payment on your new loan amount with your new loan structure.

Can you explain the entire process to me? At CapCenter we have a very efficient and user-friendly process. We are able to answer any questions that you have to make you feel comfortable before moving on to an application. Once you are ready to apply, we have a very simple online application that takes about 15 minutes to complete.

After receiving your application, CapCenter will review it to pre-qualify you by checking to see if there are any red flags. If not, then we will order a credit report and complete our underwriting of the application. We will then provide you with a commitment package. You have several days to review the commitment package, then you sign and return it to us via fax, mail or delivery to our office. After you have returned the signed commitment package, you can decide when you want to lock in your interest rates. However, your commitment will expire approximately three weeks after we issue it. We try to close your loan within 30 days after you lock your interest rate.

Please note, however, that once you lock in a rate, it’s locked. It does not float with market interest rates.

Your personal Loan Consultant will assist you every step of the way and will be happy to answer any questions you may have. Our goal is to make the process as positive and stress-free as possible.

Should I refinance now, or will the rates go lower? Our rates move with the market, which we can’t predict with any certainty. However, this is a great time to refinance.

What have rates been doing lately – going up or down? Rates are low compared to the past which makes this a great time to refinance. Our website has updated rates every day. You may sign up for free Rate Alerts on our home page.

How often do rates change/when do you update your website? Our web page is updated every morning, generally by 10:00 am, and sometimes during the day.

How do your rates compare with other lenders? Our rates are equal to or lower than rates offered by other lenders even though other lenders require their customers to pay closing costs.

I saw a lower rate in the newspaper. Why should I not go with that company? Typically, companies listed on the paper offer lower interest rates to get the customer’s attention and are accompanied by additional points and fees as well as other closing costs. When shopping rates, always compare lenders at the same interest rate. Then, select the lender with the lowest cost to get that rate. If you make this comparison before making your final decision, you will find that CapCenter offers its loans at a lower cost.

Are there really no closing costs? First of all, CapCenter is a direct lender, not a broker. We have created an organization that combines the talents of mortgage lending experts and legal professionals, providing an efficent, streamlined process. We are able to operate in large volume with lower profit margins, and pass the savings on to you, our customer.

Isn’t this just a gimmick -- don’t you just roll the closing costs into the loan amount? Absolutely not. CapCenter is a direct lender, not a broker, and we pay for the closing costs on your behalf.

Since you are paying for my closing costs, would it be advantageous for me to pay points to get a better interest rate? You could use the money you save in closing costs to buy down your interest rate, and in turn, reduce your monthly payment, saving you thousands of dollars in interest over the life of your loan. You may use the Free Quote page of our website to assess various rate/discount point scenarios.

Do you charge an origination fee? No, CapCenter is a direct lender, not a broker, and we do not charge origination fees.

How do you make money if you don’t charge closing costs? First of all, CapCenter is a direct lender, not a broker. We have created an organization that combines the talents of mortgage lending experts and legal professionals, providing an efficient, streamlined process. We are able to operate in large volume with lower profit margins, and pass the savings on to you, our customer.

How much will it cost me to refinance? CapCenter is a direct lender, not a broker, and we pay for all closing costs, such as origination fees, the appraisal, title insurance, recordation taxes and attorney fees. This saves you several thousand dollars versus other lenders.

As with all lenders, there may be some upfront discount points associated with a particular interest rate, and there could be a credit score adjuster or upfront fee if you are taking cash out of the transaction. We need to evaluate your specific loan scenario to see if those might apply. Also, if you have enough equity in your home, these fees (if applicable) can be rolled into your loan amount which enables you to close without bringing any cash to the closing table.

I’m a past customer; do I need to submit a new application? Thank you for coming back to CapCenter. We really appreciate our past customers. Yes, you need to fill out a new application.

I am looking to refinance a second home. Do I need to fill out a new application if I refinanced with CapCenter before? Yes, please complete a new application.

How long does the application process take and what information will I need? In normal times we usually process applications in a few hours. When we are very busy, we still are able to process most applications within about 5 business days of submission.

What documentation is required for a refinance? We usually need at least two months (sixty days) of statements. We will need at least two pay stubs. If you are self-employed or work on commission, then we will require more documentation. Your Loan Consultant will be able to provide you with a precise list of needed documentation after reviewing your application.

Can I back out after I submit my application? It would only cost $13 for the application deposit to withdraw if you have not locked your rate and an appraisal has not been ordered.

Does submitting an application and paying the application fee obligate me to refinance with CapCenter? No. First, we will review the application to see if you are approved. Then, we will provide you with a commitment package. If you decide to move forward, you sign and return the commitment package to us.

How do I contact CapCenter to make application changes or ask questions? You may call or email your Loan Consultant or our Client Relations Manager.

Can I make changes to my application after submitting it? Yes, you can call and speak with your Loan Consultant to make changes to your application. You may also email us.

Who handles my closing and where do I sign the paperwork? If you are refinancing, we will close your loan in our office in Innsbrook/Glen Allen. You are not required to retain an attorney or other closing agent. If you would like us to forward closing documents to you in advance for review, please let us know and we will be more than happy to make those documents available to you.

If your loan is being used to purchase a new home, we will pay for your closing if you use one of our approved attorneys, and then the closing will take place in his/her office. If you choose to use your own attorney, we will pay up to $400 towards the cost of the closing.

How can I contact someone at CapCenter to help me? We want to make sure that we are available to communicate with you in a way that is most convenient for you, so we provide several different ways to contact us. You are more than welcome to contact our office at (804) 968-5000 in order to speak with a representative. You can also email us or speak with one of our representatives via the live chat feature on our website.

Do I have to escrow or can I waive escrow? You may waive escrows if you meet certain parameters. Specifically, • You must be getting a mortgage on your primary residence • The LTV must be 80% or lower • The median credit score for each borrower must be >= 680. There is a fee of 0.25% of your loan amount to waive escrows.

Can I qualify for a purchase loan before I have found the property I wish to purchase? Yes. In fact, it is a good idea to get a pre-approval from us in advance of looking for a home so that you know not only how much you can afford, but whether you qualify for a loan. A Pre-approval from CapCenter will provide you and your realtor with far greater comfort in your search for a home. In contrast, a simple pre-qualification from other lenders is of limited value since it simply tells you what you ought to qualify for without taking into consideration your credit-worthiness.

Please explain about the $13 application deposit/fee; how does this fee work? In order to submit your online application, you must provide us with a valid credit card number. This is for your $13 application deposit. If you close with us, we will not charge the $13. If you are denied or if you choose to withdraw, then we will charge $13 if we have ordered a credit report and underwritten your loan.

For what charges am I liable if I complete an online application without locking? For a refinance, there is a $13 application fee. If you close a loan with us, this fee is never charged.

Do you charge the $13 application deposit/fee if I withdraw because rates go up? Yes, if we have ordered a credit report and underwritten your application and then you choose to withdraw, we will charge you $13.

When can I lock my rate? I want to lock today. Is that possible? Our process is different from many lenders and locking a rate is one of the significant differences.

At CapCenter we have a very efficient and user-friendly process. We are able to answer any questions that you have to make you feel comfortable before moving on to an application. Once you are ready to apply, we have a very simple online application that takes about 15 minutes to complete.

After receiving your application, CapCenter will review it to pre-qualify you by checking to see if there are any red flags. If not, then we will order a credit report and complete our underwriting of the application. We will then provide you with a commitment package. You have several days to review the commitment package, then you sign and return it to us via fax, mail or delivery to our office. After you have returned the signed commitment package, you can decide when you want to lock in your interest rates. However, your commitment will expire approximately three weeks after we issue it. We try to close your loan within 30 days after you lock your interest rate.

Please note, however, that once you lock in a rate, it’s locked. It does not float with market interest rates.

Your personal Loan Consultant will assist you every step of the way and will be happy to answer any questions you may have. Our goal is to make the process as positive and stress-free as possible.

How do I lock in a rate? After your loan is approved, we provide you with a commitment package. You then need to print and sign several documents included in the commitment package, and fax them back. Once you do that you can lock, but you can also wait and “float.”

I just completed the online application. Can I still change the discount points? You are not locked into any rate or point structure yet. You will be able to select any option you would like once you have returned your commitment letter and are ready to lock.

If I fill out the online application, am I pre-approved or locked into a rate? No. If you are approved after you apply, we will send you a commitment offer. Once you accept that offer, you can lock in your rate.

Once I have locked in a rate, can I float down within the 30 day period if the rate goes down? We do not have a float down option. Once you lock in your rate, you're locked in.

If my application is approved and the rates go lower, will I be able to adjust my rate? After you return your signed commitment package, then you choose when to lock the rate. Once you lock, there is no float down or rate adjustment. Once you lock, you’re locked.

Are there additional fees/points to take cash out on a refinance? It depends on your loan amount, home value and credit score.

How do I take cash out when I refinance? Is there a fee? As long as you have enough equity in your home, you are able to do a “Cash Out Refinance.” You may incur a small fee if you have less than 40% equity in your home. The fee amount is based on the amount of equity in your home (LTV) and your credit score.

How much cash will I need at closing, i.e., which costs/fees can be included in the loan amount at closing? This depends on your particular situation, including your loan amount, your escrows, and other factors.

Can the closing cost given from the online calculator including PMI, tax, and insurance be figured into the loan or taken out of the cash out amount? It can be rolled into the loan if you have enough equity in your home.

Does the cost of the points get rolled up into the loan or do I have to pay it at closing? You can do either.

Would we be able to roll the closing costs into the loan and get the closing costs back when we get the loan? Remember we do not charge closing costs; however, if you have a credit score or cash out fee, you may add these to the loan amount if you have enough equity in your home.

Can you roll escrows into the loan? You can do that if you have enough equity in your home.

Can I pay off and close my HELOC or second mortgage if I refinance with CapCenter? At CapCenter we do offer the ability to pay off your second mortgage when you refinance. This will eliminate the second payment and consolidate both loans into a refinanced primary mortgage. This type of refinance is called “cash out refinance.” It is necessary to have at least 25% equity in your home to be a candidate for a cash out refinance. If you have less than 40% equity, there may be an initial charge.

What credit score do I need to qualify for the rate I am seeing online? It varies depending on your LTV and whether you are taking cash out of the transaction, but 740 is the general guideline.

Does CapCenter provide construction loans? If you obtain a construction loan from a bank, CapCenter can refinance it into permanent financing for you.

Do you refinance commercial investment property? At this time, we do not refinance commercial properties.

Does CapCenter offer equity lines of credit? At CapCenter we specialize in mortgages for new home purchases as well as refinances. We do not offer home equity lines of credit.

Do you still offer an 80/15/5 loan? We cannot offer the 15% financing portion, but we could still do the first mortgage loan for you. We would refer you to your local bank to see if they could do the 15% financing portion.

What can I do if our loan has gone to foreclosure? We do not offer a product for a loan that has gone to foreclosure.

How do you handle closings that are not in Richmond? Do I need to come to your office? We prefer that you come to our office; if you choose to close elsewhere, then you are responsible for any fees charged by the closing agent.

Do both co-borrowers have to attend the closing? No, only one must attend, but the other must sign a Power of Attorney specific to this situation. We will provide you with this form.

Does CapCenter still allow closings in areas outside Richmond? Yes, we can accommodate closings outside Richmond and Virginia.

Is there a penalty if we pay a loan off early? There are no prepayment penalties.

Are the discount points tax-deductible? Talk to your tax advisor.