AmeriSave Mortgage Review
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]
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. other lenders
AmeriSave vs. SoFi
- 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 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.
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