Chase Mortgage Rate Reduction Program

[are_we_there_yet?]

I know it sounds like a spam.. but hear me out:

A few weeks ago, I got an overnight fedex mail from Chase. It looked official enough, so I opened it (I normally discard these types of mails). In it, it states that because I've been such a good borrower, they were going to lower my mortgage rate from 5.25% to 4.5%. And get this: I don't pay any fees - Chase will pick up the tab. Okay, so at this point, my scam-o-meter is ringing pretty loudly. But the letter had all my information correctly and it piqued my interest enough to call.

I contacted Chase and the loan officer assured me that it's not a scam. I think they are trying to strengthen their bottom line and hold more secure (good) loans from borrowers who won't default. With rate so low now, I they're afraid that people like me will walk. I was told it is like a retention program.

Fast forward 2-3 weeks later, I closed. No fuss and no pain.

Oh, the only bad then is that the 8 years or so that's left in my 15 year loan gets reset back to 15 years. But it shouldn't be a problem as I plan to pay the amount I was paying (in effect, I'm pre-paying). The math still works in my favor.

Just want to pass this info in case there are unlucky folks out there who still have a mortgage.

 

[Blackwoodt]

Not a scam, same thing happened to me. Went from 5.5% down to $4.5%. I too received an overnight package from Chase. Thinking it was a scam I called Chase's 800 number off my payment information. They said if you were lucky enough to get an overnight package to go for it!

I asked why they would contact me to refinance, and they stated it was because they were trying to keep their really good customers, and that when most people refinance, they never check with their existing lender. Now your loan reverts back to the original length, however as you stated if you make the old payment you still end up paying it off earlier than you would have otherwise.

I was very impressed with the whole painless process!

Kudos to Chase!

 

[dpruitt85]

Apparently Fannie and Freddie are paying bounties to banks who offer this sort of refinance. That's the motivation for the unsolicited offer.

 

[Lisa99]

We got the same overnight but unfortunately it was on one of our rentals so we couldn't take advantage.

 

[jazztbone]

Nice that they made it easy, but are you sure that's the best deal you could get? Might have been a good idea to call a couple of other lenders to see what they'd offer. Even 1/8th of a point adds up to alot over the years.

 

[brewer12345]

Nice that they made it easy, but are you sure that's the best deal you could get? Might have been a good idea to call a couple of other lenders to see what they'd offer. Even 1/8th of a point adds up to alot over the years.

The same thought had occurred to me, but there is a value to avoiding hassle too.

 

[are_we_there_yet?]

Nice that they made it easy, but are you sure that's the best deal you could get? Might have been a good idea to call a couple of other lenders to see what they'd offer. Even 1/8th of a point adds up to alot over the years.

There are definitely better deals out there. I would have to dip into my emergency cash reserves to cover the closing costs if I were to go to another lender. It's not something I'm comfortable with.

With this re-fi, I literally just faxed over a copy of my declaration of home owner's insurance and sign an authorization to disclose information form. That was it. Saving time, hassle and headache is money in itself!

 

[are_we_there_yet?]

The same thought had occurred to me, but there is a value to avoiding hassle too.

That's exactly my thought!

Also, there's something to be said about the psychology of not having to pay! All those zeroes blinded me..ha ha ha....

 

[Aiming_4_55]

I didn't receive this offer.

Sounds easy enough, but it might require some number crunching to make the best decision for your situation.

I agree, less pain. I was chatting with a loan officer earlier in the year and did a no cost refinance. We secured a 4 1/8% rate on a 15 year fixed. The total out of pocket cost was like $350 for appraisal. I probably invested 3 hours including the closing meeting.

Since it's a great rate, I might hang onto it for 10 - 12 years. All depends on what else can I do with my $$.

YMMV

 

[Texas Proud]

If you have 8 years left... making it a 15 year loan usually means the bank gets to service your loan longer.... money to them...


I wonder if this could be a way to get paperwork corrected if they had found a problem IOW, they saw they did not have the proper paperwork and thought it would be easier to have new ones signed instead of trying to prove the old ones are valid... not that they think you are about to stop paying.... but getting it right has value...

 

[carnivalday]

After reading all these posts, I decided to call Chase and see what I could get. Ive been approved to be refinanced from a 30 year 5.75 to a 15 year 4.25, raised my monthly payment $80,and Ill save $73,000 over the course of the loan. Not bad!! Thanks for the idea!

 

[Dog]

Carnivalday - did the refinance through Chase cost you anything? We were offered a no cost refinance through Chase, but the deal expired while we were out of state on vacation. They would not extend it for us. That was back in January.

 

[carnivalday]

No, there are costs involved, but it is rolled into the refinance. The only cost out of pocket it about $395 application fee.

 

[RockyMtn]

Wells fargo offered me a similar program. A point off the existing interest rate as long as I paid them out of a Wells Fargo account. They covered all closing costs...not rolled into the loan. Even are cutting me a check for appraisal and credit check. Now am back to a fresh 15 year loan but am going to keep paying the old amount so the loan will actually be paid off earlier with the lower interest rate.

 

[Texas Proud]

No, there are costs involved, but it is rolled into the refinance. The only cost out of pocket it about $395 application fee.

I think this is a point that people have to be aware... some of these are NOT 'no cost refis'... they are refis that roll all of the cost into a new loan, so that you owe more money after the refi than before... and some of these costs can be high..


Then there are real 'no cost refi'... IOW, your loan balance is the same before and after the refi... and you do not write a check... usually, these have a higher interest rate so the banks can make up for the closing costs... but, if the rate is lower than what you have now, who cares

 

[carnivalday]

I just signed to refinance my mortgage; and yes, the new loan is for a few thousand more than my old one, but since Im going from 24 years to 15 years, and saving about $73,000, I think its probably worth the closing costs.

 

[are_we_there_yet?]

I just signed to refinance my mortgage; and yes, the new loan is for a few thousand more than my old one, but since Im going from 24 years to 15 years, and saving about $73,000, I think its probably worth the closing costs.

For me, after the refinance, I will only shave off a few months on the length of the original loan (if I continue to pay what I was paying). The thing that interested me the most was the lowering the monthly payment. If one of us losses our job, at least we can still afford the mortgage payment. It increases my nocturnal somnolence factor by a few folds.

Mortgages, like all personal finances, are well, personal.