Capital One
Is This Your Business?4.2
6.2
Overall Score
Author: Kaitlyn Short
Founded in 1988 and headquartered in Virginia, Capital One offers financial services ranging from credit cards to banking to home and small business loans.
Top Ranked Companies
The Good
- Competitive Interest Rates
- Relatively Low Closing Costs
- Customer Communication
- Mobile App
Competitive Interest Rates
As of December 2016, for a borrower with excellent credit purchasing a $250,000 home with a $50,000 down payment and a 30-year fixed rate loan from Capital One, the interest rate comes out to be 4.13 percent, which is very competitive among interest rates offered by other top home loan companies.
Relatively Low Closing Costs
Capital One charges closing costs of 2 to 5 percent of the total purchase price, which is relatively low in the industry.
Customer Communication
Capital One provides its borrowers with frequent updates about the status of their loan throughout the entire lending process.
Mobile App
Capital One customers have access to a mobile app that is compatible with iOS, Android, and Windows devices. This app allows borrowers to view and manage their loan from their smartphone or tablet.
The Bad
- High Credit Score Requirement
- Limited Loan Options
High Credit Score Requirement
Capital One has set its minimum acceptable credit score for borrowers at 660, which is one of the highest disclosed requirements of all of the companies we've reviewed.
Limited Loan Options
While many other companies in the industry offer several types of home loans, Capital One only offers two: fixed rate mortgages and adjusted rate mortgages. This greatly limits the options of the borrower.
The Bottom Line
Capital One provides competitive interest rates, relatively low closing costs, frequent customer communication, and a useful mobile app. However, the company's loan options are limited and its minimum credit score requirement is high.
