A major credit card issuer, Capital One has expanded significantly, since its inception in 1994, to offer a larger platter of consumer banking services, making it one of the ten largest banks in the United States. The 2007 subprime lending crisis led it to close its mortgage platform, but it can still offer a range of home loan products today.
Capital One can originate home loans and provide mortgage servicing through its main banking arm Capital One Bank, N.A., which has about 1,000 branches and 2,000 ATMs, as well as through an online banking division known as CapitalOne 360, which is actually a rebranding of ING Direct that Capital One Financial Corporation acquired in 2011 to replace National Direct Bank, its former online banking division.
How to Apply for Capital One Home Loans?
You can visit a bank branch or apply online to complete the process of mortgage application at Capital One. Here is the step-by-step process.
- Get preapproved: It is always a better idea to prequalify for a loan before you can begin home hunting. You can visit a nearby branch, call the phone number 855-756-7797 (or 1-855-238-8769), or use the online platform to begin the preapproval process. The bank keeps a track of your loan application, which you can access online using a login ID. Just sign in to My Loan Status to receive latest updates from the bank securely.
- Get custom rates: The mortgage rates are subject to change and not all borrowers are offered the same rates. Depending upon your typical situation, you will be offered a customized rate, which you can accept and lock, if you prefer, or discard and wait for a better rate. A mortgage calculator can also help you know how much you should borrow to make payments affordably.
- Choose your mortgage option: It is vital to understand the difference between a fixed-rate mortgage and an adjustable-rate one. Choose an appropriate option. One tip is to ask yourself whether you are going to stay in your home beyond five years from now. If the answer is yes, then you are better off with a fixed-rate option as it ensures fixed monthly payments and a known amortization schedule. Capital One offers 15-year and 30-year fixed-rate mortgages, and 5/1 and 7/1 ARMs.
- Submit your documents: You need to submit documents attesting your qualification for Capital One mortgages. You can do so either by visiting a branch and submitting in person or using your online account, signing in to My Loan Status, reviewing your Good Faith Estimate (GFE) and uploading required documents.
- Close your loan: After submission of the required documents, the bank will begin to process your loan. You can log in to your account to get online access to important messages, such as the closing date. Close your loan and get the key of your new home.
Capital One Mortgage Payment
Continue making payments, choosing any of the options that Capital One has offered. You can also pay off early, contacting the mortgage payment center, asking for a payoff quote and making payments in full.
What is the advantage of a fixed payment?
You can pay off your debt with Capital One in up to 30 years, depending on the loan option you have selected. If you have opted for a fixed-rate mortgage, you may be able to pay off in either 15 or 30 years, depending upon the term you have chosen. One advantage with such a loan option is that you know how much you need to pay every month towards amortization of your mortgage.
When can an adjustable-rate mortgage be a preferable option?
A fixed payment is a better option for those who have regular income from a permanent source. On the other hand, if your income is not steady or you want to move after a few years, a variable payment may be what you are looking for. A lower interest rate will result into a lower payment, which you can easily afford during the initial years of your loan origination.
How to Pay your Mortgages?
Keep paying your mortgages when they are due to avoid a late fee and, possibly, a default. Capital One offers a range of options to help you make payments regularly on time. Some of the possibilities include online pay, sending payments to a mailing address and pay by phone or visiting a brick-and-mortar branch. Online access to your mortgage account also allows you to set up an automatic payment option.
Where to send payments by mail?
The mailing address to send your payments by regular mail is
Capital One N.A. P.O. Box 17000
Baltimore, MD 21297-1000