AmeriSave is great for not charging an origination fee and having competitive rates among the best mortgage lenders.
Our Two Cents — AmeriSave offers competitive mortgage rates — But you may have to buy several discount points to get the lowest quoted rate, which will drive up your closing costs.
AmeriSave at a glance
|Lender||Loan Amount||30-Year Fixed APR||Available Products||Key Benefit|
|AmeriSave||$45,000 to $1,500,000||2.537% APR||
||Full spectrum of mortgage loans|
What we like about it
AmeriSave mortgage rates are very competitive. Its 30-year fixed-rate mortgages have an interest rate of just 2.537% with a mortgage point discount of 1.114%, meaning you can get a mortgage rate lower than the national average. AmeriSave also offers a rate-match guarantee that may help you get an even better deal. If you receive a loan estimate from another lender that offers lower rates or fees, AmeriSave will match it or give you $100.
Another reason to go with AmeriSave is that it doesn’t charge origination fees. On average, origination fees cost 1% of the total mortgage amount. Depending on the purchase price of your home, you could save hundreds or even thousands of dollars by choosing a loan without origination fees.
Things to consider
To get the lowest mortgage rates, you may need to buy discount points, which can be costly. The interest rate AmeriSave advertises on its website — 2.537% for a 30-year loan — is based on buying three discount points, which cost about 1% of the loan amount each. You may not end up needing to buy three discount points to get a good mortgage rate. However, it’s worth keeping in mind that the low interest rates quoted on the lender’s website come with pretty significant fees.
Another thing to consider is that AmeriSave ratings are on the low side. On the BBB website, customers only gave the lender three and a half out of five stars. Many of the negative AmeriSave reviews centered around communication issues. Some customers said they received too many calls and texts, while others claimed they experienced delays in the mortgage process due to unresponsive loan officers.
[Read: Best Online Lenders of 2020]
What you need to know
AmeriSave offers conventional fixed-rate mortgages with terms ranging from 10 to 30 years, as well as adjustable-rate loans with fixed interest periods between five and 10 years. The company also offers mortgage refinancing, government-backed loans and jumbo loans up to $1.5 million.
Because AmeriSave is an online lender with less overhead than a brick-and-mortar bank, it can offer competitive mortgage rates. Its 30-year fixed mortgages have an interest rate of 2.537%, while it’s 15-year loans offer an even lower rate of 2.493%. Keep in mind that interest rates vary depending on creditworthiness and the number of discount points purchased at closing.
AmeriSave gives you the option to buy discount points to bring down your interest rate. Each discount point typically costs 1% of your loan amount but may save you money, in the long run, depending on how much it lowers your mortgage rate and how long you plan to stay in your new home. AmeriSave also charges several third-party fees including appraisal and credit report fees. They usually cost between $1,500 and $2,000 in total.
If you’re interested in getting an AmeriSave mortgage, you can apply online or over the phone. Your loan officer will need to verify your assets and income, so make sure you have financial documents like pay stubs, tax returns, bank statements and investment account statements on hand.
Collateral and criteria
AmeriSave requires borrowers to have a credit score of at least 620 for conventional mortgages and 600 for government-backed loans. If you’re interested in getting a jumbo mortgage, you’ll need a credit score of 700 or more.
Another factor the company considers is your debt-to-income ratio. Although debt-to-income requirements vary depending on the loan type, you’ll generally need a DTI of 50% or less to qualify for a mortgage. If your DTI is between 46% and 50%, you may also need cash reserves that can cover your mortgage payments for at least six months.
AmeriSave vs. SoFi
SoFi SimpleScore: 3.5/5
SoFi is another online lender that originates mortgages in 42 states and the District of Columbia. It offers conventional mortgages, jumbo loans and mortgage refinancing with interest rates as low as 3.25%. But if you’re interested in government-backed loans, AmeriSave is the better option. Currently, SoFi doesn’t offer FHA, VA or USDA loans.
If you need a jumbo mortgage, however, SoFi may be worth considering. It offers jumbo loans of up to $3 million with no private mortgage insurance and down payments as low as 10%. AmeriSave, on the other hand, only offers jumbo mortgages up to $1.5 million and requires a 20% down payment, plus nine months of funds in reserve to cover your mortgage costs.
AmeriSave vs. NBKC
NBKC SimpleScore: 3.25/5
NBKC is a small bank headquartered in Overland Park, Kansas, offering home loans in all 50 states. You can apply for a mortgage online, over the phone or in-person at one of the bank’s four branches in Kansas. You can also monitor the status of your loan using the convenient mobile app, or check your mortgage rate using the bank’s online tool. It gives you a personalized estimate in seconds without asking for your personal information or checking your credit.
Using the tool revealed that NBKC has slightly higher interest rates than AmeriSave, but going with NBKC may be worth the extra cost for its excellent customer service. NBKC got nearly five out of five stars on the BBB website. It’s also one of the top lenders for VA loans, in part because it waives its $675 origination feefor veterans.
Too long, didn’t read?
AmeriSave doesn’t charge origination fees and offers competitive mortgage rates, which could help you save money on interest. But to get the best rates, you may have to pay for discount points, which will raise your closing costs. Before you commit to a mortgage from this company, shop around and compare offers from other lenders to make sure you’re getting the best deal.
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The SimpleScore is our proprietary scoring metric to compare products and services at The Simple Dollar in a transparent, evidence-based way. Our editorial team identifies five quantifiable aspects to compare for every brand, determines the rating criteria for each aspect score, then averages the five aspect scores to produce a single SimpleScore. For mortgage loans, we compared perks, credit impact to check rates, customer satisfaction, product variety and fees for every major lender. Our ratings are meant to be a directional tool to help you in the process of choosing a mortgage loan provider. Be sure to continue your research and shop around for the best mortgage loan that fits your specific needs.
We welcome your feedback on this article and would love to hear about your experience with the mortgages we recommend. Contact us at firstname.lastname@example.org with comments or questions.