Ameristar's FREE loans (those without points and fees, where nothing is added to your existing loan balance) typically offer home owners a range of advantages not seen by consumers at first glance, as well as some important trade offs to consider, but when it is all said and done, some 90% of Ameristar clients prefer taking a FREE loan whenever possible.

Please review the example listed below for a better understanding:

If your current loan balance happens to be $400,000 dollars, and you wish to refinance, here are the 2 most common refinance options for comparison purposes vs. the FREE loan option from Ameristar. 

Option A: No Point loans

“No Point” loans are not to be confused with a FREE loan from Ameristar. Typically, there are fees attached to a "No Point Loan"(Example: Title and escrow fees etc.) Charges typically range from $2,500 to $4,500 dollars, which in most cases are added to you existing loan balance. In this example your interest rate could be 4.5% with a new loan balance of $403,500 (after the closing cost are added in). The new monthly payment is $2,044.


Options B: Point Loans

A “Points” loan will typically include 1 point or more (In this example we'll use 1 point, or 1% of the loan amount, as a fee of $4,000). Add to this the closing costs (as already mentioned in Option A, $3,500). This will bring your loan amount up to $407,500. Paying a point with closing costs would bring down your interest rate to 4.25% and lower your monthly payment to $2,004.

Ameristar's FREE loan option
With Ameristar’s FREE loan there are no charges, NO points and NO closing costs or fees. Even the cost of an appraisal is fully refunded with the recording of your new loan, and not a dime is added to your existing loan balance. In this example your loan balance stays the same at $400,000 (your home equity is preserved). The FREE loan interest rate is slightly higher than the other two options, at 4.75% giving you a monthly payment of $2,086. But your'e never locked in to this loan, since there is no pre-payment penalty and if rates drop again, your'e free to follow them lower.

Mathematical Analysis
When making some final calculations, it is easy to see that Ameristar's FREE loan has a slightly higher rate and payment than the other two loans options, but FREE loan recipients have flexibility that the other two loan options can NOT offer. If interest rates continue to go lower Ameristar clients can follow them lower, and can do so for FREE!

1) "No Points" loan:
It costs $3,500 to save $42 per month over Ameristar's FREE loan, it is worth the expense? It will take over 6.9 years before this loan will recoup the expense of $3,500.
2) "Paying a Point" loan:
It costs $7,500 dollars to save $82 per month over Ameristar's FREE loan, is this worth the expense? It will take more than 7.6 years before this loan will recoup the expense of $7,500. If your going to live in this home for less than 7 years, there is no reason to pay to refinance in either example.

When considering a Fee based vs. FREE home loan from Ameristar, there is one very hard fact to consider, next to no one spends thousands of dollars (in some cases tens of thousands over the years, through multiple refinances) to refinance their home today, only to learn that with the passing of time, their current interest rate is now obsolete, because interest rates have dropped yet again! This can be very frustrating for home owners both emotionally and financially.
Conversely Ameristar clients look forward to interest rate drops, since they never paid any fees for their last loan why shouldn't they consider taking another FREE loan at a lower rate?

Ameristar Capital Mortgage, Inc. has done this for its clients since 1993! FREE loans from Ameristar won't fritter away the hard earned equity in your home, and you're always ready to take another FREE loan when the interest rate market drops lower.

Additionally, all of Ameristar's home loans are backed by Fannie Mae or Freddie Mac, providing California home owners with the best terms and protections in the home loan industry.

Restrictions do apply, so please call us now, and lets see what we can do for you!