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Chase Bank Mortgage Review 2022

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Chase Bank Mortgage Review

hunting bank

  • Annual Percentage Rate (APR)

    Apply online for personalized rates; fixed and adjustable rate mortgages included

  • Types of loans

    Conventional Loans, FHA Loans, VA Loans, DreaMaker℠ Loans, and Jumbo Loans

  • Terms

  • Credit needed

  • Minimum deposit

    3% if you continue with a DreaMaker℠ loan

Advantages

  • The Chase DreaMaker℠ loan allows for a down payment of just under 3%
  • Discounts for existing customers
  • Online support available
  • A number of resources available to first-time home buyers, including mortgage calculators, affordability calculator, training courses and home consultants

The inconvenients

  • Does not offer USDA loans or HELOCs
  • Existing customer discounts apply to those with large balances in their Chase deposit and investment accounts

APR

The best way to determine the annual percentage rate, or APR, Chase Bank will likely offer you to pre-qualify and submit your home loan application.

Although mortgage interest rates can fluctuate quite often, the rate you receive will depend heavily on your location, credit score, and credit history. Check each lender’s website to get a better idea of ​​the types of interest rates they charge, but keep in mind that they vary depending on your location and creditworthiness. In any case, it is important to provide the information necessary to verify your personalized rate.

Loan offers

Chase Bank offers conventional loans as well as adjustable rate mortgages, FHA loans, VA loans, and jumbo loans, but not USDA loans.

This lender also offers a special home loan called the DreaMaker loan, which allows buyers to make a down payment as low as 3% – in comparison, FHA loans require borrowers to put down at least 3.5%.

While this particular option is ideal for those who can only afford a small down payment, it also comes with stricter income requirements compared to some other loans – according to the Chase team, the annual income used to qualify the customer must not exceed 80% of the region’s median income.

If you meet the income requirements for the DreaMaker loan, this could be a great option, especially for those who prefer to keep the down payment as small as possible and spend more of their money on other shopping expenses. of a house.

Minimum deposit

The the lowest down payment you can make with Chase Bank is 0% – note that this option is only available to those who are eligible to apply for its VA loan.

Anyone who doesn’t qualify for Chase Bank’s VA home loan can still make a down payment as low as 3% by opting for the DreaMaker loan, which has the second lowest down payment minimum offered by the lender.

If you go ahead with an FHA loan, you will need to put down a minimum of 3.5%, while for a conventional loan, your down payment will need to be at least 5% of the home’s value.

For those considering going ahead with a jumbo loan, keep in mind that the typical down payment amount for these types of loans between lenders is usually 10%. Thanks to Chase Bank, the minimum down payment amount is at least 20% of the value of the house.

Terms of office

Chase offers flexible loan repayment terms ranging from 10 to 30 years. You will also have the choice between fixed rate and adjustable rate mortgage terms.

Customer service

Homebuyers can be matched with a Chase Home Loan Advisor in their area by entering their address to locate one nearby. Mortgage counselors will make sure you’ve completed your application correctly, provided sufficient documentation, and may even review your estimate offer with you.

Advantages

This lender offers discounts to existing customers, but the requirements are quite high. To receive $500 off your mortgage processing fee, you need to have $150,000 to $499,999 between your Chase deposit accounts and your Chase investment accounts, while having $500,000 or more in those accounts provides up to $1,150 off processing fees.

At the end of the line

With the DreaMaker home loan option, Chase Bank is a solid mortgage option for those who want a low down payment but don’t qualify for a VA loan. Just keep in mind that this particular option has stricter income requirements.

Although Chase Bank offers many types of popular home loan options – VA loans, conventional loans, FHA loans, and jumbo loans – this lender does not offer USDA loans. If you are interested in a USDA loan, it is worth working with another lender such as PNC Bank, which offers USDA loans.

Our methodology

To determine which mortgage lenders are the best, Select analyzed dozens of US mortgages offered by online and brick-and-mortar banks, including major credit unions, that come with fixed-rate APRs and flexible loan amounts and terms to meet a range of mortgage needs. funding.

When selecting and ranking the best mortgages, we focused on the following characteristics:

  • Fixed APR: Variable rates can go up and down over the life of your loan. With a fixed-rate APR, you fix an interest rate for the life of the loan, which means your monthly payment won’t vary, making it easier to plan your budget.
  • Types of loans offered: The most common types of mortgages are conventional loans, FHA loans, and VA loans. In addition to these loans, lenders may also offer USDA loans and jumbo loans. Having more options available means the lender is able to meet a wider range of applicant needs. We have also considered loans tailored to the needs of borrowers who are planning to buy their second home or a rental property.
  • Closing timeline: The lenders on our list are able to offer closing times that range from as little as two weeks after signing the home purchase agreement to up to 45 days after signing the agreement. Specific closing times have been noted for each lender.
  • Costs: Ongoing fees associated with mortgage applications include origination fees, application fees, underwriting fees, processing fees and administrative fees. We evaluate these fees in addition to other features when determining each lender’s overall offer. Although some lenders on this list do not charge this fee, we have noted all instances where a lender does.
  • Flexible minimum and maximum loan amounts/terms: Each mortgage lender offers a variety of financing options that you can customize to suit your monthly budget and the length of time you need to pay off your loan.
  • No prepayment penalties: The mortgage lenders on our list do not charge borrowers for loan prepayment.
  • Simplified application process: We looked at whether lenders offered a convenient and fast online application process and/or an in-person procedure at local branches.
  • Customer service: Every mortgage lender on our list offers customer service by phone, email or secure online messaging. We have also opted for lenders that have a resource center or an online advice center to help you learn about the personal loan process and your finances.
  • Minimum deposit: Although minimum down payment amounts depend on the type of loan requested by the borrower, we have noted lenders who offer additional specialty loans with a lower minimum down payment.

After reviewing the features above, we’ve sorted our recommendations based on overall funding needs, fast closing times, lower interest rates, and flexible terms.

Note that advertised rates and fee structures for mortgages are subject to fluctuation in accordance with the Federal Reserve rate. However, once you have accepted your mortgage contract, a fixed rate APR will ensure that your interest rate and monthly payment will remain constant for the life of the loan, unless you choose to refinance your mortgage. at a later date for a potentially lower APR. Your APR, monthly payment, and loan amount depend on your credit history, creditworthiness, debt-to-equity ratio, and desired loan term. To take out a mortgage, lenders will do a credit check and ask for a full application, which may require proof of income, identity verification, proof of address and more.

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Editorial note: Any opinions, analyses, criticisms or recommendations expressed in this article are those of Select’s editorial staff only and have not been reviewed, endorsed or otherwise endorsed by any third party.