With many of today’s mortgage shoppers desperately searching for a deal that’s both affordable and consumer-friendly, comparing different banks and lenders is an everyday task. From small banks to nationwide chains, tiny credit unions to some of the world’s biggest lenders, there’s no shortage of different mortgage lenders out there, and certainly no shortage of deals to capitalize on.
It’s worth noting that this is a stark contrast to how things were just one years ago, when even the most financially conservative and responsible borrower could hardly find a single bank willing to finance their home. While we’ve come off the tail end of a crisis in mortgage lending, it looks like we’re back to relative normalcy, with banks lending out responsible loans to responsible borrowers.
Today, we’re going to look at one of the United States’ biggest banks, and one of their most prolific mortgage lenders – Chase Bank. A huge nationwide banking chain with thousands of employees, it is considered a leader in United States retail and consumer banking. With a huge presence, it’s also the type of bank that’s considered dependable and consumer-friendly, particularly for borrowers.
Also working in Chase’s favor is its reputation and activity over the past few years. While many of the country’s top banks resorted to nasty tactics and predatory lending, it’s considered a much more responsible banking corporation. While it was involved in the mortgage crisis, its role was less than that seen from other banks, lending an air of credibility to its dealings with mortgage borrowers.
Chase Bank offers a variety of different home loan and mortgage services, each aimed at a different type of borrower and each backed up by different terms and conditions, different purposes, and even different interest rates. As such, it’s a bank that’s suitable for almost all types of borrowers, whether they’re searching for financing for a country home, a small inner-city apartment, or a condominium.
At the heart of Chase’s mortgage lineup is their 30-year and 15-year home mortgages, each of which are offered at a fixed interest rate. These mortgages, unlike the variable rate mortgages which are to blame for the recent economic meltdown, are issued at a set rate of interest, and as such are unlikely to change during their repayment period. This makes them a safer option for many borrowers.
The average APR rates for these two mortgages vary, largely due to the doubled term length for the thirty-year mortgage. For the shorter fifteen-year mortgage, average APR sits at 3.91%. For a longer term, such as the thirty-year fixed rate mortgage, average APR is 4.73 percent. This puts Chase at a mid point in the mortgage lending world, offering mortgages APR in line with the market itself.
It’s worth noting that there are potential disadvantages to these types of mortgages. Although many people believe that adjustable rate mortgages – known as ARMs to many in the industry – can only shift upwards in their interest rates, it’s possible for them to move down should the market move in that direction. This can result in a relatively small opportunity cost loss for fixed rate mortgages.
However, this is balanced by the fact that a 4.73 percent APR figure on a Chase fixed rate mortgage is 4.73 percent interest, unlike variable rate loans that can move upwards as repayments begin. This makes them a more reliable option overall. For borrowers that would prefer an adjustable rate home loan, Chase also offers a mortgage that uses this kind of interest calculation and market adjustment.
The average APR on Chase’s current adjustable rate mortgages is hovering slightly above 3 percent, putting it in line with others in the market. This means that, as of now, adjustable rate mortgages are less expensive than their fixed rate peers. However, should interest rates change, it’s possible that an adjustable rate mortgage could become substantially more expensive for borrowers in the long term.
Chase Bank currently offers a number of benefits to its borrowers, including a one percent returned cash program designed to improve customer experience for borrowers. In this program, people with a Chase mortgage can claim back one percent of their interest and principal payments. This helps to make a standard mortgage through the bank more affordable, and more accessible for consumers.
A range of benefits on Chase savings and money market accounts are also offered, although many of these appear to be a part of temporary promotions and other marketing efforts. Depending on a mortgage’s length and value, borrowers may be able to get significant extra benefits from some of the other services offered by Chase. It’s best to investigate this further at your loan bank branch.
On the whole, Chase mortgage rates fall in line with market lending rates. In some cases, in fact, they’re slightly lower than market rates. This, combined with Chase’s large footprint amongst all American consumers and borrowers, makes them a great choice for your mortgage. With a large network of branches around the country, they’re a reliable and dependent lending option.
However, as with any form of borrowing, it’s always worth shopping around before committing to a loan from any one lender. Compare your options, both locally and with other nationwide banks, and you’ll undoubtedly uncover great deals. Whether they’re with Chase or another lender, you’ll find a mortgage that’s affordable, appropriate, and best of all, designed with your needs in mind.