Chase Mortgage Loan Review 2022 – Forbes Advisor – Forbes

March 10, 2022 By admin

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Updated: Jan 25, 2022, 11:02pm
Chase Home Lending is the mortgage arm of JPMorgan Chase & Co. It is one of the largest finance institutions in the country with branches nationwide and online services. You do not have to be an existing customer to get a mortgage or refinance.
Chase offers a variety of mortgage options. It provides fixed-rate mortgage loans with 10-, 15-, 20-, 25- and 30-year terms, depending on the type of loan. Adjustable-rate mortgages (ARMs) are available starting at 5-, 7- or 10-year terms. If you are trying to buy a more expensive property, Chase has a jumbo loan mortgage option, which has a maximum loan amount of $3 million.
Chase offers a wide range of home loan products and at annual percentage rates (APRs) that tend to be lower than the market average. As of early January 2022, the annual percentage rate (APR) on their loans ranged between 2.6% and 3.4% depending on the area, type of mortgage loan and market rate trends.
Chase also has a ‘Closing Guarantee,’ promising an on-time closing in three weeks—after submitting all the required documents—or you’ll get $2,500. The Guarantee does not apply if you are refinancing. This offer is only available for new, residential first-lien loan applications submitted directly to Chase.
Both their purchase loans and refinancing rates are updated daily, helping you to calculate your likely monthly payments.
This means you must have enough savings to cover a specified number of monthly mortgage payments—including the principal, interest, taxes, insurance and assessments—after the loan closes. Geographic restrictions apply.
Its Relationship Pricing Program provides jumbo loan borrowers customers with $500 off the processing fee. 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 get a 0.125% discount off the standard interest rate. Participating customers with more than $1 million can get a 0.25% discount.
Chase also offers a $2,500 or $5,000 grant for DreaMaker, Standard Agency, FHA and VA loans if you are buying a home in 6,700 minority neighborhoods nationwide. You might also be eligible for an additional $500 by completing a certified education course and getting a DreaMaker mortgage loan.
The grant can be applied towards discount points, closing costs or lowering your down payment (dependent on loan product’s requirements). The $500 will be applied at your closing first to points on the loan, if any, then to Chase fees and then non-Chase fees.
Chase has three paths for customers interested in refinancing their mortgage loan:
A fixed-rate refi offers a consistent interest rate for as long as you have the loan, instead of a rate that adjusts or floats with the market. This means your mortgage payment will be consistent, 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 equals a lower monthly payment. An ARM refi has an interest rate that stays the same for a set period of time, then changes 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 and then resets every six months after that for the life of the loan.
Chase does not explicitly state the minimum credit score to be eligible for any of its loan products, but a spokesperson said they prefer a score of at least 620. Chase does note on its website that “FICO credit scores between 580 and 669” are considered to be fair while “credit scores below 580 are deemed poor.”
Chase lets you check your credit score for free and review your report for mistakes. You should contact the credit bureaus to correct any errors.
Chase will verify your income during the application process, and calculate your DTI ratio by dividing your monthly debt payments to your monthly gross income.
The industry standard is to have a DTI less than 43% in order for a mortgage to meet certain government-backed standards. 
However, if your DTI is higher than 43%, you may still be eligible for a mortgage if another person (a spouse, relative or someone who lives in the home) co-signs with you. Chase will ask you for the co-applicant’s information during the application process.
The bank says a down payment on a conventional loan less than 20% will require private mortgage insurance (PMI). It estimates that the annual cost of PMI is about 1% of your outstanding mortgage balance. You can request to have PMI eliminated once your outstanding loan balance reaches 80% of the original loan amount.
However, as noted earlier, some loan products may require smaller down payments, such as only a 3% to 5% or no money down. The minimum down payment is 3%, unless it is a VA loan, which doesn’t require a downpayment.
Traditional banks prefer to lend to borrowers with steady income. They usually require you to have been at your current job for at least two years. You can also expect more strict income requirements if you are applying for a jumbo loan.
Closing costs are what you’ll pay before the home purchase or refi is complete. Some of these fees will be paid upfront or built into the mortgage balance, while others will be due at closing. You will receive a closing disclosure (CD) a few days before close that outlines all of the costs and fees you’ll need to pay.
The common closing costs that Chase lists include:
For jumbo loans specifically, Chase offers $500 off of the processing fee for Chase Private Clients with combined assets of $150,000 to $499,999 in eligible Chase deposit and/or JPMorgan Wealth Management accounts or waiver of the entire processing fee (up to $1,150 for most loans) for eligible accounts with at least $500,000.
This discount applies to the full spectrum of residential mortgage loans, including fixed- and adjustable-rate products for jumbo and conforming mortgages.
You can begin the application process online from the mortgage section of the Chase website. The “Start online” button at the bottom of the page will take you to a secure page. There, you’ll be asked whether you have an application in progress and are a current Chase customer; you will be required to log in if you are.
If you already have Chase accounts, some of the application information will be prefilled based on the personal info the bank has on file for you. If not, you’ll be asked to fill in the information for the loan application. This will be used to verify your identity, pull your credit report and contact you.
After you have submitted this, you will then have to speak to a home lending advisor to complete the application process.
Chase has a MyHome digital dashboard for you to upload documents securely. You can also sign the mortgage application and disclosures using e-signatures.
It is important when applying for a mortgage loan to select a product and amount that is right for you and your budget. Having an application denied is not the end of the world, even though it might feel that way.
If your application is denied by Chase, the bank says:
There aren’t any recent complaints against Chase in the Consumer Finance Protection Bureau’s Consumer Complaints database. It has a B+ rating from the Better Business Bureau (BBB), and its reviews are overwhelmingly negative. The majority of the complaints are about the bank’s customer service with regards to personal checking and business accounts, as well as credit cards.
We graded Chase loans based on elements that have a meaningful impact on the cost of the mortgage; borrower eligibility requirements; the variety of loan options; and loan features that can impact the homebuying process. Our scoring method is based on the following categories:
While there are certainly more features that lenders offer, we chose not to include these in our scoring in order to bring forward lenders that have the most competitive rates and are among the most accessible for borrowers of all financial backgrounds.
Our focus on affordability, accessibility and key features that can impact the homebuying process (like preapproval time and closing timelines) is what we consider reflective of today’s consumer’s top priorities when comparison shopping for mortgage lenders.