Buying a home is one of the biggest undertakings of most people’s lives. Not only do you need to determine where you should live and what type of home you want, but you also must create a budget and secure financing to make the purchase.
Many people apply for a mortgage to fund the purchase of their home. However, it’s difficult to pick a lender when there are so many options. You want one that is trustworthy and that offers favorable terms. So, how does AmeriSave Mortgage stack up? Find out more about this popular company, the services it offers, and its pros and cons to make an educated choice.
What Is AmeriSave?
AmeriSave Mortgage is an online mortgage lender based in Atlanta, Georgia, and has more than 20 years of experience serving customers. It offers a wide variety of mortgages for varying financial situations. You may also be eligible for a government-backed loan that offers lower interest rates and low down payments.
Interest rates for AmeriSave products depend on the loan type and the terms of your individual offer. Additional costs also vary but typically include a $500 application fee plus a $295 underwriting fee.
What Products Does AmeriSave Offer?
AmeriSave offers personal loans, life insurance and home insurance, but its main function is as a mortgage lender. There are various types of home loans available through AmeriSave:
- Conventional Loans: A conventional loan has a fixed interest rate. The interest rates for these loans are typically higher than an adjustable-rate mortgage, but they are a good option if you have a strict budget and need to know exactly what your payment amount is each month. The interest rate is locked in and doesn’t change throughout the life of the loan. AmeriSave offers fixed interest rate home loans with terms for 10, 15, 20, 25 and 30 years.
- Adjustable-Rate Loans: Also known as a variable rate mortgage, this option has an interest rate that changes based on market conditions. They typically start out at a fixed rate for a set number of years. After that initial time period, the rate is adjusted yearly. The initial interest rate is usually low, making this a good choice for homeowners who only plan to be in their homes for only a short period of time.
- Refinance Loans: If you have paid down your home loan so that the amount you owe is less than what your home is worth, it’s possible to refinance your current home loan to secure a lower interest rate or get better loan terms.
- VA Loans: VA loans are low-interest and no down payment or low down payment loans available to U.S. military veterans and their families. Since these loans are backed by the U.S. Department of Veterans Affairs, the lender assumes little risk and can offer more favorable terms.
- FHA Loans: Mortgages issued through the Federal Housing Authority are meant for people who need a low down payment and those with less-than-perfect credit.
- USDA Loans: Another low-interest option for those that qualify is a USDA loan. These loans are geared toward people who live in rural communities and offer zero-down mortgages.
- HELOC Loans: A home equity line of credit gives you access to money to use for a variety of purposes. This loan simply borrows against the equity you have built into your home.
- Cash Out Loans: For those who have equity built up, you can also consider a cash-out loan to get access to funds for things like paying off debts or tackling home improvements. Essentially, the new mortgage pays off the old one, giving you cash back to use however you need it. Cash-out refinance loans allow you to borrow a maximum of 80% of your home’s value.
Getting started with AmeriSave is fast and easy. Just enter your personal details and the amount you wish to borrow to see customized options available to you. If you have questions or need help choosing the right loan, you can speak with an agent for personalized service.
Who Is AmeriSave Best For?
Nearly anyone can apply for a mortgage through AmeriSave, but the company is ideal for borrowers who require the flexible loan terms of government-backed loans. You must have a minimum credit score of 600 or 620, depending on the loan type you choose.
Pros of Taking Out a Mortgage With AmeriSave
There are many reasons why AmeriSave is popular with customers:
- Good choice of loan products
- Competitive rates
- See customized rates without a hard credit pull (in most cases)
- Mobile-friendly website and application
Other positives include an A+ rating with the Better Business Bureau and a rating of 4.3 stars on Trustpilot.
Cons of Taking Out a Mortgage With AmeriSave
Before you begin the home loan application process, you need to know about the potential problems and downsides. The main features of AmeriSave considered on the negative side are:
- No branch locations
- High origination fees
- Not available in New York state
- No home equity loans
- No construction loans
The lack of home equity and construction loans can exclude some borrowers from finding a good fit with AmeriSave. Some customers may also prefer to work with a lender that has branch locations for in-person communication.
The Bottom Line
AmeriSave is an established home loan company that is proven to be trustworthy. It has earned a positive reputation, and many borrowers are able to save money by qualifying for a loan with low-interest rates and great terms. As with any major financial decision, it’s smart to compare rates from several companies before selecting the loan that is best for your situation. Do your research, have a solid understanding of your finances, ask questions and read the loan agreement carefully before signing.
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