Chase Home Finance

Chase Home Finance Products

Fixed Rate Loans

The fixed rate mortgage loans offered by Chase can be amortized over a thirty year or fifteen year period. Fifteen year amortized loans have a lower interest rate than the thirty year loan, but this is an industry standard. Chase also offers a thirty year fixed rate loan which is an interest-only loan for the first 120 months. Although not the most prudent of choices, the interest-only loan can be quite attractive to some customers.

Adjustable Rate Loans

Chase offers several different adjustable rate mortgages (ARMs):

• 1/1 ARM: This loan allows for an interest rate fluctuation every year, up or down, up to six percent above or below the initial interest rate of the loan. This means that if the loan was originally written for 6 percent, but each year the interest rate went up, the borrower would eventually be paying 12 percent in interest on the loan.
• 3/1 ARM: The interest rate on this loan remains the same for the first three years of the loan and then becomes variable. Like the 1/1 ARM, the maximum fluctuation allowed is 6 percent.
• 5/1 ARM: The interest rate on this loan remains the same for the first five years of the loan and then becomes variable. The maximum fluctuation for this loan product is 5 percent.
• 7/1 ARM: The interest rate on this loan remains the same for the first seven years of the loan and then becomes variable. The maximum fluctuation for this loan product is 5 percent.
• 10/1 ARM: The interest rate on this loan remains the same for the first ten years of the loan and then becomes variable. The maximum fluctuation of this loan product is 5 percent.

The less amount of time the loan is fixed, such as with a 1/1 ARM or a 3/1 ARM, the lower the interest rate. Although many mortgage companies base their interest rates on the Federal Prime Rate, Chase Home Finance bases their mortgage interest rates on the London Interbank Offered Rate, also known as the LIBOR.

Note: Interested consumers should always verify current loan rates and terms before choosing the best mortgage for their needs.

Less-Than-Perfect Credit

Chase does offer mortgage loans to people who have had credit problems in the past. Consumers with past credit problems such as late payments or bankruptcies may still be able to secure a mortgage loan through Chase Home Finance, but the interest rate they pay will certainly not be the same interest rate someone with better-than-average credit is paying for a mortgage.

Applying for a Mortgage Loan

Chase's website is able to accept applications, and applicants can also utilize the website to get a pre-qualification letter. Potential applicants are also able to apply over the telephone or instead walk into a local Chase branch and speak to a mortgage consultant. Chase mortgage consultants will also offer informational mortgage products such as brochures and other education materials to first time home buyers.

Purchase a Chase Property

Chase has a division which sells houses, meaning a buyer can actually seek out a home which is owned by Chase to purchase. The webpage for this division allows a borrower to look up properties owned by Chase by inputting geographical information such as town, county, or zip code. Chase-owned properties are not necessarily eligible for any special discount when a buyer finances through Chase Home Finance.

Chase promises to have mortgage loans closed on time, or they will give buyers $300. This promise makes Chase quite attractive to some buyers who cannot afford get stuck in a lag when trying to purchase a home.

As with any mortgage product, different lenders offer different products with widely varying terms, conditions, and rates to suit their different clients’ needs. Chase Home Finance products may be suitable for many applicants, but only by researching different options and speaking with qualified professionals will the buyer be able to determine if Chase can offer them the best deal.