Chase Mortgage Review 2022 – Forbes Advisor
Chase offers a wide range of home loan products and at annual percentage rates (APR) that tend to be below the market average. At the start of January 2022, the annual percentage rate of charge (APR) on their loans varied between 2.6% and 3.4% depending on the area, the type of mortgage loan and the evolution of market rates.
Chase also has a “closing guarantee,” promising an on-time closing in three weeks — after submitting all required documents — or you’ll get $2,500. The Guarantee does not apply if you refinance. This offer is only available for new first lien residential loan applications submitted directly to Chase.
Their purchase loans and refinance rates are updated daily, which helps you calculate your likely monthly payments.
Home Buying Loan Options
- Chase DreaMaker Mortgage. It offers down payment options as low as 3% and lower monthly payments with a 30-year fixed rate. However, you will have to meet income requirements to qualify for this loan.
It is only available if you buy or wish to refinance without cashing in a principal residence (1 to 4 units) for a fixed rate term of 30 years. Income limits and homebuyer education apply to a DreaMaker mortgage.
- FHA loan. A government-insured mortgage that offers down payments as low as 3.5%. Federal Housing Administration (FHA) loans have terms of 15, 20, 25, or 30 years and have a fixed interest rate. Although there are no specific income requirements to be eligible, you will be required to pay monthly mortgage insurance for the term of the loan and a mortgage loan insurance premium at closing.
- VA loan. You must be a veteran, active duty member, or National Guard or Reserve member to qualify. A VA loan has low or no payment options and no monthly mortgage insurance requirement. VA loans are available with terms of 10, 15, 20, 25 or 30 years. A certificate of eligibility from the VA is required to document eligibility. Restrictions and limitations apply.
- Agency Standard Mortgage. It comes with a minimum down payment of 3% and is a good option if you have a higher credit score and might not need a low down payment. The agency’s standard mortgages require you to be a first-time home buyer to qualify for a loan-to-value (LTV) ratio above 95%. Homebuyer education requirements may apply.
- giant loan. Chase grants above loans FHFA limits up to $3 million. Investment properties are eligible for loans of up to $1 million. Loans of up to 80% of the value of a home are available when buying or refinancing without cash back, subject to the type of property, a minimum credit score required and an amount minimum monthly reserves.
This means you must have enough savings to cover a number of monthly mortgage payments, including principal, interest, taxes, insurance and appraisals, after the loan closes. Geographic restrictions apply.
Its relationship pricing program offers clients of jumbo loan borrowers $500 off processing fees. You must have combined assets in Chase deposit and investment accounts totaling $150,000 to $499,999. You can also get up to $1,150 off your processing fee with combined assets totaling at least $500,000.
Jumbo loan borrowers with a minimum of $500,000 in eligible Chase and JPMorgan deposit accounts and/or wealth management accounts receive a 0.125% discount off the standard interest rate. Participating customers with more than $1 million can get a 0.25% rebate.
Chase is also offering a $2,500 or $5,000 grant for DreaMaker, Standard Agency, FHA, and VA loans if you buy a home in 6,700 minority neighborhoods nationwide. You may also be eligible for an additional $500 by completing a certified training course and securing a DreaMaker mortgage.
The grant can be applied to discount points, closing costs, or reducing your down payment (depending on loan product requirements). The $500 will be applied to your closing first to points on the loan, if any, then to Chase fees, then to non-Chase fees.
3 ways of refinancing
Chase offers three routes for customers wishing to refinance their mortgage:
- Repay the loan earlier. For example, refinancing from a 30 year mortgage to a 15 year mortgage. With this option, your payments will likely increase, but you’ll own your home sooner and save on long-term interest payments.
- Lower monthly payments. Spreading your loan out over a longer period can lower your monthly payment, but with more interest paid over the term of your loan.
- Take equity. If you’ve owned your home for a while and have amassed a significant amount of capital, you can withdraw some (or all) of it to fund major expenses.
Refinance loan options
- Refinancing by collection. Chase’s cash-out refinance option allows you to pay off your current mortgage and create a new one, while allowing you to keep some of the equity in your home in cash to pay for home improvements or renovations. other major expenses.
A fixed rate refi offers a constant interest rate for as long as you have the loan, instead of a rate that adjusts or floats with the market. This means that your mortgage payment will be constant, but the fixed rate loan will have a higher interest rate.
An ARM offers a lower interest rate for a set period of time, which equates to a lower monthly payment. A refi ARM has an interest rate that stays the same for a set period of time, then switches to a variable rate that adjusts periodically. For example, Chase offers a 7/6 ARM with an introductory interest rate for the first seven years, then resets every six months thereafter for the life of the loan.
- Alternative loan. In addition to FHA and VA loan options if you want to refinance, Chase also offers 15 and 20 year mortgage products. If you want to pay off your mortgage faster, you may want to consider a shorter term refinance. However, since you are repaying your loan over a shorter period, your monthly payments will likely be higher.