Chase Mortgage of September 2023

Types of home loans

JPMorgan Chase bank N.A. has several mortgage and refinancing existing mortgage options for applicants. You can apply for conventional loans, government-backed loans, and home equity lines of credit.

There is an online pre-qualification procedure available on the Chase website.

• Conforming mortgage loans are for good-income borrowers who can cover a higher down payment and have a good credit score. The down payment is from 3% to 20% of the home purchase price.
• The loan terms for conventional mortgages are 30, 15, or 7,5 years. The interest rate can be both fixed and adjustable.
• Borrowers can expect APRs ranging from 5.3% to 6.2%, based on the number of years of payments. Adjustable-rate home loans can also be available with rates of approximately 4.4% for a 5-6 months term and 5.1% for a 6-7 months term.
• FHA loans are for lower income. The down payment can be as low as 3.5% of the house purchase price. The loan requires monthly mortgage insurance. These are government-insured loans with terms of 15, 20, 25, or 30 years and have fixed interest rates.
• The DreaMaker loan program is for a smaller down payment. The down payment requirements can be as low as 3% of the house purchase price. There is a strict income requirement.
• VA loans are backed by the government and are designed for veterans and active servicemembers. The down payment can be 0%. The loan life is from 10 to 30 years.
• Jumbo loans are for high income and credit scores. The down payment starts from 15% of the house purchase price. The loans require to cover higher fees. Jumbo loans are used for higher-priced real estate. The maximum loan amount you can get with a Chase mortgage is $9.5 million.
• For home equity loans, there is an online calculator that you can use in order to get an estimate of the final numbers. Mortgage rates can differ depending on several factors, but, on average, you'll be getting roughly 6.2% APR on a 30-year loan with a fixed rate, 5.67% APR on a 15-year fixed loan, and 5.3% on a 30-year Jumbo loan. Loan amounts range between $25,000 to $500,000. HELOC (home equity line of credit) is the main option here.

Refinancing with Chase has the same options as home loans. For a 30-year-old loan, you'll likely be getting a fixed interest rate of 5.75%. For the 15-year-old option, you'll probably get a rate of roughly 4.9%.

There is the Chase Homebuyer Grant allowing you to get $2,500 or $5,000 for lowering the interest rate on your Chase mortgage. After that, you can use the remaining sum for fees and a down payment.

Pros and Cons

Pros

1. You can apply and make payments online. JPMorgan Chase Co is at the forefront of online banking. It allows you to pay off your loan online or pre-qualify conveniently.
2. Chase home lending has many products and mortgage options. You can find the home loan that suits your needs and financial situation.
3. Competitive rates are offered by JPMorgan Chase. Even the highest interest rate estimations are very attractive when you compare them to other banks or lenders.
4. Chase Homebuyer Grant has $2,500 to $5,000 available for JPMorgan Chase Bank N.A. customers. The sum can be applied to the interest rate, fees, and down payment.

Cons

1. Alaska residents cannot apply for a Chase mortgage. The bank does not operate in the state.
2. Pre-qualification offered by JPMorgan Chase requires a hard credit pull. This will lower your credit score by several points.
3. Chase is not always straightforward with its requirements. You will have to talk to the home lending advisor to get all the requirements or complete the application.

Requirements for applicants

There are different requirements for every type of home loan available through Chase. In order to qualify for a home equity loan, you'll need the following:

• Sufficient credit score. Chase does not outright state this, but it is expected from you to have a score of 700 or higher.
• A suitable loan-to-value (LTV) ratio cannot exceed 80%. The ratio shows in percentage how much of the loan you still have to pay.
• Verifiable proof of your income and assets allows Chase to know if you can pay the loan back.
• Debt-to-income (DTI) ratio of at least 43% ensures you can pull the funds to make monthly payments towards your Chase mortgage. It is the percentage of your income to the debts you have.

The basic requirements for mortgage refinancing are majorly focused on the credit score. The score requirement for the bank's applicants needs to be over 700. There is an application document checklist available on the Chase website, which can aid you in putting together an application.

The requirements for the government-backed Chase mortgage can be a bit lower. The applicants must have a credit score of 620 and higher to qualify, and the down payment can be 0% to 3%.

There are additional requirements to take into consideration, especially when talking about the jumbo mortgage option, but a sufficient credit score will be the deciding factor. What is also important to note is that you will be able to get better mortgage rates with a higher credit score.

How to apply for a Chase mortgage?

Before applying for the Chase home lending offer, you should decide what mortgage type is right for you. Take the following into consideration when choosing the loan type:

1. The loan amount is the available sum you can receive for the home purchase or a mortgage refinance. While home equity lines of credit allow you to get a sum up to an approved limit many times, with other mortgage types, you can only get a fixed amount once.
2. A down payment is money reducing your loan balance by some percentage. Banks require you to make a down payment as an initial payment. The lowest down payment amounts are on government-backed loans, while on other mortgage loans, they can be up to 20%.
3. Interest rate is the additional payment you pay the bank for using the money. On adjustable-rate mortgages, the interest rate will be fixed for some time and then can change according to the Prime Rate. Your credit score hugely impacts the interest rate you will get.

Once you manage to find a suitable loan offer, you can start the application process. Chase allows you to apply online:

1. Access the Chase website and click on the "Home Loans" button;
2. You can estimate the payments and interest rate or click the "Get Started" button to fill in the application;
3. After you choose the "Get Prequalified" button, the bank will ask you to specify some personal, income, and employment information and the details of the home loan you want to get. During the prequalification stage, you will not need to submit any documents.
4. If you are pre-qualified, Chase will contact you with the offer you can get and suggest to proceed with the application. If the loan terms and conditions are suitable for you, get to the application. Here, you will need to submit the documents proving your identity, address, income, and employment. The bank will decide if you can get the loan based on the formal documents you have submitted.

The bank may take up to 45 days to decide if you are eligible for the loan. It will contact you once the decision is made. If you are rejected, Chase will state the reasons. If you are approved, you will get the money in 5 to 7 days, along with the loan agreement.

In case you want to apply in person, you can schedule an appointment in the local subsidiary of JPMorgan Chase. Bring the documents with you.

How to pay off a home loan?

Chase allows you to pay back the home loan in several ways:

• Set up Chase mortgage payments from another bank. This will be the "External accounts" tab in your Online Banking or Chase Mobile.
• Set up mortgage payments from the Chase account. After signing into your Chase account, choose the "Pay and transfer" option and schedule the payment. The payment amount will be deducted from your Chae checking or savings account.
• Pay with a check or money order. You can mail payments using the address stated on the payment coupon or go to the Chase local branch. Send your payment five to seven business days before the due date.
• Make payments via phone to the automated service. Once the payment is complete, you will get a confirmation number.

You can additionally set up alert message via the Chase Mobile app to make sure you follow the due dates.

The company makes sure that it is as easy and as convenient as can be for you to make the payments.

You can continue making payments as scheduled or make an attempt to pay off the loan early. There are no penalties for early repayment, and there is a multitude of ways that you can pay off your debt sooner. Make additional payments monthly, a large lump sum payment, or increase the amount you pay every month.