CashCall Mortgage Review: Low Rates and No Closing Costs

CashCall Mortgage is a bare-bones low-cost mortgage lender. Qualified applicants can get a home loan with no closing costs. You might think you'd pay a much higher mortgage interest rate to make up for the low out-of-pocket costs. But in fact, CashCall's rates are among the lowest out there. Read our full CashCall Mortgage review to find out if this is the best mortgage lender for you.

This mortgage lender is a good fit for: A well-qualified borrower who wants to save on fees.

Top perks

CashCall pays some of your fees

There is no fee to apply at CashCall Mortgage, nor is there an origination fee on most loans. Together, these fees can easily amount to $1,000 to $3,000 or more when you get a loan from another mortgage lender, so this is a potentially significant savings.

Non-QM loans

CashCall Mortgage offers what it calls Common Sense Loan products, which are non-qualified mortgage loans (non-QM loans). These are designed for people who don't meet traditional home loan requirements and include the following options:

• Investor loan: Based on the rental income you expect to receive on an investment property
• Bank statement loan: For self-employed borrowers who want to qualify on cash flow instead of tax returns
• Interest-only loan: For borrowers who need to minimize their monthly payments for a period of time
• ITIN loan: For borrowers in the U.S. who don't have a Social Security number.

For these loans, you'll pay a $995 lender fee, which is far lower than the fee many other lenders charge for similar loans.

Free rate lock

CashCall Mortgage will lock the rate on a purchase loan for 45 days at no cost to you. If mortgage interest rates go up before your loan closes, you won't have to pay the higher rate.

Transparent rates

CashCall Mortgage does a great job of providing mortgage rates on its website. That's really handy if you're doing initial research and you're not ready to give your contact information to lenders yet. Also, CashCall Mortgage shows various rates based on how many mortgage discount points you choose to buy. That helps you balance your monthly payment amount, upfront expenses, and long-term costs.

HELOC option

If you're happy with your current mortgage, you can consider a home equity line of credit. A HELOC is a good alternative to a cash-out refinance mortgage.

What could be improved

Not nationwide

CashCall Mortgage offers great deals on home loans, but not everyone can take advantage. You can apply in many states, but CashCall Mortgage is unavailable in these states:

• Arkansas
• Connecticut
• Delaware
• Hawaii
• Iowa
• Kansas
• Louisiana
• Maine
• Maryland
• Maryland
• Massachusetts
• Missouri
• Montana
• Nebraska
• New Mexico
• New York
• Rhode Island
• South Carolina
• South Dakota
• Vermont
• West Virginia
• Wisconsin
• Wyoming

Limited options for people who need a low down payment mortgage

CashCall Mortgage doesn't offer many choices for a borrower who needs a low down payment loan option. Borrowers who qualify for a VA loan can skip the down payment, but everyone else will need to come up with a down payment. CashCall Mortgage does not currently offer USDA loans.

To get a mortgage from CashCall Mortgage, you'll need to be located in a state it serves.

For a conventional loan, you'll need:

• A credit score of at least 620. To get the best mortgage rate, you may need a higher score. If your score is below 620 but at least 580, you could apply for an FHA loan.
• A debt-to-income (DTI) ratio below 50%. Your debt-to-income ratio is the amount of your pre-tax income that goes to debt each month, including your new housing payment. If your DTI is higher than 50%, you could apply for an FHA loan. This may have more flexible requirements.

You'll also need to have enough money for the down payment. Most conventional loans at CashCall Mortgage require at least 5% down. The FHA loan requires 3.5% down. Some special loan programs, such as the bank statement loan or the investment property loan, may require a higher down payment.

You can use a mortgage calculator to figure out how much cash you'll need for the down payment and closing costs.

If you want one of CashCall Mortgage's Common Sense loans, you'll need the paperwork your loan program requires.

• For the bank statement loan: You'll need to show 24 months of bank statements.
• For the investment property loan: You'll need evidence of the amount of rent the property receives, such as a current lease agreement.

Requirements are a little different for VA loans. You don't need a down payment, but most borrowers pay a funding fee. If it's your first time using your VA loan benefit, you make no down payment, and you don't qualify for a fee waiver, you'll pay 2.15% of your loan amount. You may be able to roll the fee into your loan. Also, the DTI limit may be lower for a VA loan.

CashCall Mortgage does not make any indication that it charges a different interest rate for refinance loans. Some lenders charge a little more for a refinance than a purchase. Rates at CashCall Mortgage are very competitive.

CashCall Mortgage's rates trend about the same as the national average. For CashCall's lowest rate, you'll need to buy mortgage discount points.

Mortgage discount points are prepaid interest. You can pay this fee up front to permanently lower your interest rate. The price of one point is equal to one percent of your loan amount. (So if your loan is $400,000, one point will cost you $4,000.) In exchange for that fee, you'll get an interest rate discount, usually between 0.125% and 0.25%.

The amount of the discount varies by lender and loan, and it can change any time.

You're well qualified and can price shop your home loan. If you've got an excellent credit score and can meet the down payment and DTI requirements, CashCall Mortgage could save you thousands of dollars in fees.