CashCall Mortgage Beats the Big Banks: Offers 30-Year 'Free Closer' ... a 4.875% Fixed-Rate Mortgage With Zero Points and No Closing Costs

Jan 13, 2010, 14:50 ET from CashCall

ANAHEIM, Calif., Jan. 13 /PRNewswire/ -- Just when the mortgage departments at America's largest banks thought they had cornered the market, CashCall Mortgage beats their supposedly low rate plans yet again. This time, CashCall gives consumers a low fixed-rate of just 4.875% with zero points and zero closing costs. With the exception of taxes and insurance, consumers pay nothing to close, and there are no built-in points (those extra up-front fees banks love to charge). Loans of up to $417,000 qualify for this special 'Free Closer' plan.* (See for details.)

The unique 'Free Closer' loan from CashCall Mortgage also eliminates the confusing difference between the interest rate and the APR (annual percentage rate). Because CashCall pays the closing and doesn't add points, there are no additional fees; so, the advertised 4.875% rate is what you pay… that's it.

(NOTE: Take a look at the rates most banks advertise. While the interest rate is said to be 5.25%, for example, the APR, what you're actually paying, is closer to 5.75% because of added points and fees.)

CashCall's rates are consistently lower than Wells Fargo and Bank of America.  For example, Wells Fargo's version of the free closer is priced at 5.25% with 1 point; Bank of America's is priced at 5% with 1.125 points (as of 1/6/ 2010).

"It's a simple, but powerful idea," explains company founder and president, J. Paul Reddam. "CashCall Mortgage has committed to offering American families very low interest, 30-year, fixed-rate loans. The rate is 4.875%; the APR is 4.875%. There are no more seemingly endless charges traditionally associated with many bank-offered mortgages... additional fees that can push the total cost of home ownership beyond the means of many American families."

Higher Rates on the Horizon… Last Chance to Refinance Below 5%

The sub-5% fixed-rate mortgage from CashCall comes at a critical time for potential homebuyers. Reports out of Washington indicate that mortgage rates will most likely rise throughout 2010 and remain higher for the foreseeable future. As CNN reported (, January 7, 2010), "If you want to refinance your mortgage into a loan with a sub-5% interest rate, better hurry. Your window of opportunity is closing fast... for most borrowers, rates are rapidly rising into the 5%-plus category." What does this mean for those shopping for a mortgage? The historically low rates are quickly disappearing, particularly from the larger banks. Now may be the optimum time to secure a mortgage. By this time next month, and certainly by the second quarter of 2010, interest rates will be on the rise.

"As you can imagine," says Reddam, "major financial institutions would like nothing better than to raise mortgage rates. And it seems that for the first time since the recession, the FED (Federal Reserve System) is leaning in that direction. We want to encourage homebuyers to act quickly, act now, if they possibly can, to secure a sub-5%, 30-year, fixed-rate loan. As the chief economist for Moody's put it: 'Interest rates are up and they're not going down below 5% again.' So, even if you don't choose CashCall, I encourage consumers to act now on securing a mortgage. I do believe that our 'Free Closer' program helps make the process easier and certainly much less expensive. Put your money into the home you want, not into points and closing costs."

About CashCall

Founded in 2003, CashCall, Inc. has grown to become one of the nation's premier consumer finance lenders. Headquartered in Anaheim, California, the company employs over 250 lending professionals, each dedicated to providing exceptional customer service. A pioneer in the use of innovative computer technologies and forward-thinking management systems, CashCall has been able to simplify the loan process, greatly reduce costs and pass the substantial savings along to customers. Unlike so many of its competitors, CashCall does not charge application fees or cancellation fees. CashCall Mortgage, a division of CashCall, Inc., specializes in new mortgages and home refinancing.  

*CashCall is an equal housing lender. CashCall Inc. offer extends to loans of up to $417,000, owner occupied, rate and term refinances at 80% loan to value with impounds and minimum 740 FICO score. Rates subject to change without notice. Not all applicants will qualify and certain restrictions apply. Loans will be made pursuant to Department of Corporations California Finance Lenders Law License No. 603-8780.