I just ran into this program recently and thought I would discuss what I know about it so far.
Consumers with Chase mortgages have started receiving Fedex packages on their door offering them the ability to refinance their existing mortgage into a lower rate and payment, with no closing costs. Obviously, you think there is a catch to the offer, as I too would, but after investigation, you find that it’s not. Let’s take a look at the "Chase Rate Reduction Program" as it is called.
Chase is offering in effect, a no closing cost mortgage for customers that have equity in their houses, and have been making payments with no late payments; don’t know how far back their history goes, but if it’s been a while since you had a late payment, it may be worth looking into. This is a screaming deal because the offer comes to you and you don’t have to go hassling with mortgage brokers and banks looking for the best deal, unless your adventurous and like hunting for the deal.
So this is how it works, you receive a Fedex package in the mail from Chase with a number to call and reservation number. You call the phone number and bam, your moving along. Chase is doing this from what I see, you have a week to respond. The process seems pretty painless too because they are looking for a 1 page authorization form and proof of your homeowners insurance and BAM! New mortgage with a lower payment!
Once you fax in your forms, you’ll receive a Good Faith Estimate, or a GFE, with everything outlined and instead of having to send anything back to Chase, you get a call to schedule your closing and hello new mortgage with no costs! This sounds like a KILLER deal right now, but I’m with Wells Fargo right now.
If you haven’t received the package yet, don’t fret. People are reporting they called asking about the program and one person stated that Chase called back with a ‘new offer’ that did decrease his interest rate and his payments! The phone number to call is 866-818-7033. Another number that may be associated with this program is 800-550-7485.
Now if I was a Chase customer that fit this profile, I would get on it, but I’m not, but I would like to share the word with people and get the word out about this program. Does Chase have the best deal out there? Maybe they do, and maybe they don’t. There could be deals out there that is better than Chase’s, BUT, Chase’s deal is pretty simple and painless. Who wants to dig out their pay stubs and tax forms and hope the appraisal comes up with a value that will allow you to refinance?
From my analysis, the interest rate that you are offered is based on what the rate is when they mail out the letter to you. I don’t know if you can haggle on the rate, but, I would like to know if it’s possible or not.
Another plus on the deal is that if you do an autopay for your mortgage, they will give you 1% cash back. I’m unclear if they give that money to you or if they apply it to the mortgage. It’s definitely not very much money, but it’s a little extra. I also am unsure if you have to autopay from a Chase deposit account or if you can autopay from any account.
Now to the why they are making this offer to existing customers, well, a couple possible reasons the way I see it.
First, this is the part where they can show to the government how they are helping the homeowner, and this is benefiting those of us who are still making payments diligently and doing our part for society.
Second, they don’t want all of these high quality loans to get refinanced with other banks and then they lose out on their ‘A’ mortgage paper and this is a way for them to keep your mortgage on their books.
THIRD, I’m smoking a crack pipe and somebody thought they would do of their customers.
Now some things that will disqualify you from this program/offer from Chase.
- It cannot be an investment property.
- You probably can’t have any late payments, or at least not in the recent past (I don’t know how far back they may go.)
- You need to have equity in your house, probably a good portion of equity too.
- You can’t have another loan on your house like a Home Equity Loan or a Home Equity Line of Credit; HEL or HELOC. This may be OK if the loan is with Chase, but if the second loan is with another bank, the answer is no.
Regardless, this is an AWESOME deal; first because of the ‘no closing cost’ refinance characteristics and because it’s simple and easy, remember, authorization form and proof of homeowners insurance.
Now that I’ve talked it up, let me bring some downers to the table otherwise it wouldn’t be fair now would it.
First, your going to reamortize or redo the loan for the new length of the mortgage. The negative is you could potentially pay more in interest for the lower rate. The fix to that is to continue making the old payments and pay off the loan sooner. If your monthly payment savings are substantial, you could potentially pay off your loan much sooner than if your payments were lower.
Second, if the mortgage you are refinancing is a purchase mortgage, or you used the loan to purchase the house, your mortgage now becomes a recourse loan. Some states, California is the only one that comes to mind right now, do not allow the lender to come after you for any difference between the auction price of your house if you are foreclosed and the amount you owe. If however, you refinance the loan, it now becomes a recourse loan and the lender, in this case Chase, can come after you for the difference between what they auctioned the house for and what you owed.
In simple terms, if you owe $100,000 on your loan, and they auction your house for $75,000, the lender can then come after you for the $25,000 difference.
The Chase Rate Reduction Program has the following conditions:
* you are employed and/or have a steady source of income along with sufficient assets to close on your new loan
* you do not currently have a second lien mortgage held by a company other than Chase (other options are available if you have a second lien mortgage at another financial institution - call us for details)
* you have no bankruptcy, foreclosure, judgments or liens
* borrowers on the new loan should remain the same as the original loan (some changes in borrowers are allowed with the new mortgage, call if you have questions)
* your property is a detached single-family residence (other options are available for co-ops and condos - call us for details)
* your property is not held in trust
* you current mortgage loan does not have mortgage insurance
* there is a net benefit to you such as reduced principal and interest payment, a lower rate, or converting to a more stable product (such as moving from an adjustable rate to a fixed rate)
* you will sign the required closing documents
Folks with Chase mortgages, there you have it. I’m fairly certain this is applicable Nationwide so go forth and take advantage of a good deal if you can.
I’d like to hear back from you if you’ve gone through the program and hear about your experiences. Just add comments below.
We got this offer and have decided to go through with it - doing the paperwork now. It lowers our APR by .75% and costs nothing (apparently). We tried to buy points and otherwise negotiate the APR 4.75 but they said nope. we probably could have gotten a lower rate somewhere - but it would have cost time and closing costs.
ReplyDeleteI've been seeing a number of people getting this offer. Must be working for Chase and people are wondering if this offer is legit, which I believe it is.
ReplyDeleteChase is doing this to retain 'good customers' to keep their portfolio numbers in line (ie, good paying customers who have older loans are refi shopping and leaving, causing Chase's books to get skewed with only the people stuck in their old mortgages who can't change them). Since they get dinged in various ways if they have a bad balance sheet, they need to keep good customers on the sheets. This rate isn't the 'best' you could get by shopping around, so they're still making money, and they know it helps keep them in line as far as good VS bad loans. They win by keeping you *and* your good payment history, you win by getting a loan pretty close to what you'd get by shopping around and with very little effort.
ReplyDeleteWe had an initial loan w/ Chase on our home. Built new for us, closed May 2008, Value: $180K, took a loan for $120K 15 Years fixed @ 5.5%, and have paid the principal down to ~$60K. This program includes an offer where Chase will drop our rate to 4.5%, restarting the 15 year clock (won't matter, we'll still pay off early by making additional principal payments, but now we'll have even more to go to principal reduction), and the nice part for us is, say we *do* have a change of employment/income, the payments we're *legally* bound to are lower and easier to meet w/o worry about losing the house. We live in a recourse state, regardless, so there's very little direct impact to us.
It is a simple process with an emailed PDF disclosure form you sign and scan along with a copy of the current homeowner's insurance and then schedule to meet a notary at your house from 8AM to 8PM at a date and time of your choosing.
So far, the people at Chase (and they're all w/ Chase, working in their Columbus, OH office, for example) I've worked with have been pleasant, prompt to reply, and thankfully, are happy to use email as needed since I travel and can't always be around to get mailed documents signed at the house.
I also received this offer and am looking into it; awaiting the full documents.
ReplyDeleteTo add, I had asked why this Program was created: the Chase advisor also noted that Chase is getting paid (by the Government) to establish this program, which as the blogger noted earlier, incentivizes the company to work to retain current, solid customers.
This offer may be part of HARP (Home Affordable Refinance Program), part of Making Home Affordable program of government. Not saying it is bad.
ReplyDeleteI am actually going through a 'normal' REFI but it is going VERY slow. Last week I got Chase's offer and am strongly considering it.
ReplyDeleteJust received the FedEx today offering to lower my 4.875% to 3.875%. I plan to call tomorrow and will let you know how it works out. I thought they might encourage people to add to their remaining principal during the refi, but their Q & A specifically states that you can only refi for the amount of the first mortgage balance.
ReplyDeleteHappy Gilmore,
ReplyDeleteI just received this offer and was quoted a rate of 4.625. The process was pretty simple and If I continue to make my old payment I will pay the new loan off in apprx. 20 years. I cannot see a downside to this program. But I still seem skeptical and I am waiting for something bad to happen. I am sending this info to Clark Howard for his opinion/advice.
I received this offer from Chase in July of 2010 and it is exactly what the author is referring to. No it's not too good to be true.
ReplyDeleteChase came to me and lowered my interest rate from 5.40 to 4.12 with zero points or closing costs passed on to me. Chase worked the whole refi out in basically 2 weeks time. There was a little going back and forth over the payoff amount due to some insurance and tax escrow adjustments. To get the monthly payments even lower I wound up paying to the title company my next months partial payment, but got to skip paying Chase that month's payment and actually got a 1 month reprieve as to when my next payment was due. Even better yet you can enroll the new mortgage for auto-pay with Chase and get up to 1% cash back on your principal payments. The offer is definitely legit and appears to be only for consumers with excellent credit and zero late payments with Chase.
We have a 15 year mortgage and were offered a reduction from Chase from 5.125 to 4.125%. I called and tried to haggle for a lower rate, saying that a competitor bank had offered us 3.875. The Chase guy said go ahead and refi with the other bank then, but the closing costs will mean that you save less money. He was right, so we went ahead with the Chase refi with no closing costs.
ReplyDeleteIT IS ABSOLUTELY WRONG INFORMATION, I HAVE THERE CUSTOMERS, I HAVE RECEIVED FEDEX PACKAGED AND APPLIED FOR LOAN, THEY SAID I WILL QUALIFY, AFTER 8 MONTHS THEY SAID THEY CAN'T DO MY LOAN EVEN I AM QUALIFYING WITH EVERYTHING (INCOME, ASSETS, CREDIT), BECAUSE FED GOV NOT ALLOW THEM TO HELP QUALIFIED BORROWERS, ALL SCRAP... DON'T LISTEN, CHASE IS RIDICULAS.
ReplyDeleteI got the offer lowering my rate to 4.375% on a 30 year no costs! We just signe the final documents last night 2 weeks after I called! This is a great program that Chase is offering good customers, finally!
ReplyDeleteOne drawback could be that when Chase closes your old loan out, they have you skip the last month of your principle on your old loan and they add it to the amount you are borrowing on your new loan. It has little effect on your newly lowered monthly payments, however what about your credit? Missing just one mortgage payment really puts your credit in the doghouse, and you won't be able to get another loan for sometime.
ReplyDeleteMeh. I'm in the middle of refinancing my loan with another company and am not "on the offer list" from Chase. Tried to get through to someone - anyone - who could actually look at my loan and see if I could do this rate reduction, and there's was NO WAY anyone I spoke to could investigate. They told me that if I was delinquent on my mortgage, they could do a modification, but that otherwise, I'd have to sit and wait to see if this offer came my way.
ReplyDeleteSorry, Chase, but my money will be elsewhere by then. Too bad you're too big to look at individuals.
Beyond that - I've gotta say, the customer service a CHase was horrific. Both times I tried to get transferred to someone who could answer my questions about how to check on this process, I was transferred to electronic menus where it said, "Press Zero to Speak to an Agent." After pressing zero, there was an abrupt, "We can no longer speak to you" and they HUNG UP ON ME.
Way to go there, Chase. Even if I had considered refinancing with you, the poor service pushed me off that idea.
I received this package and thought it was too good to be true. But, my rate is going from 5.625 to 4.5 for basically filling out some paperwork. I've only been in my home for 2.5 years so to go back to a 30 year mortgage again is not a big deal. I'll continue to make the higher payments and pay off the loan sooner.
ReplyDeleteI received the package in the mail Monday, 10/18 called Chase on the 19th and already have a closing date of 11/2. I asked the Chase rep a 100 questions and what the catch is. He said that the number of people defaulting on loans is 1 in 7 - Chase knows that and wants to reward those who have good credit and a good payment history, so in the off chance, I do run on hard times, with a lower payment I'm likely to still pay my mortgage. My payment is going down over $330 a month. If this does turn out to be too good to be true, I'll be sure to post and let others know, but so far, so good.
- Oct 18, 611pm Anonymous
ReplyDeleteI believe you may be confusing this loan program with a loan program that you applied for through the traditional loan methods. This loan is legit and it works.
- Oct 19, 1006pm Anonymous
That is what happens when you refinance, you skip a loan payment and it does not affect your credit. The skipped payment is not recorded as a late payment because you pay the incurred interest expense in the refinance.
Has anyone received this offer who lives in New York? I just got off the phone and Chase claimed that this program has not been offered to anyone in New York. I'm wondering if this is true.
ReplyDeleteMonday, I received fed-ex package from Chase containig the Rate Reduction Program. I spoke with a representative yesterday. I ran the numbers last night and my wife and I decided to participate in the program. We were quoted a rate of 4.63. My current rate is 6.0. My mortgate payment will be reduced by $300. I will continue to make the payment I was previously making to reduce the principal. At that rate I should pay off the mtg in 19 years rather than 30 years.
ReplyDeleteWhen I spoke with Chase representative, he gave me his name and direct number. I hope to close in next 2 weeks.
I am a very skeptical person concerning offers like this. I would have thrown it away except that it came Fed Express. The Chase representative explained the program and asked certain qualifying questions which took about 20 minutes. I had to fax Chase a copy of insurance declaration page and authorization for disclose information.
We received the fedex letter last week with no closing cost, actually no costs whatsoever and a reduced rate from a 30 yr 6.25 to a 15 year at 4.5. I had been wanting to refi but the idea of all the paperwork,the outlay of thousands of dollars and getting the house appraised stopped me. When the offer came I called several Chase offices to make sure the deal which seemed too good to be true was for real. Well it is. It seems that if you pay your bills on time and have good credit you finally get something back for it. Chase wants to keep us as a customer and with an offer like this, we're not going anywhere else. When I called a local Chase Bank they said this offer comes from a Chase call center and they are the only ones who can offer it. If I went directly to my bank they could offer me a lower rate, ie, 3.65 but not the 0 closing costs, etc. and I would need a new appraisal and in my small town that would not be beneficial at this time. I'll know in another week if all goes well but so far so great.
ReplyDeleteI just wish the banks could offer this to people who are in desperate need of help. As wonderful as this is, there are so many people who need this and aren't offered it. It seems if the banks could help people reduce their rates that they wouldn't be as deep in the foreclosure crisis and people would appreciate banks and be loyal rather than scared or
angry with them. Just a thought.
We called Chase and was told they are not interested in dropping interest rates ---they didn't even look up our loan to see we are have never been late on a payment...
ReplyDeleteI'm worried because the principal amount Chase is quoting is about $1400 more than we owe. They tried to explain to me why this is but I still don't get it. Any ideas?
ReplyDeleteDoes anyone know, as part of this Chase program, if you can lower your length of your mortgage. We have 30 year @ 5.85%. The letter came today listing 4.5%. At that rate and the amount left on the loan, I could switch to a 20 year and still save $50 per month on P+I. Wondering if they would do this before I call.
ReplyDeleteWe Just finished this. Were a little skeptical at first but decided to go for it. Seems like a no brainer. Easy, no cost and they sent a notary to our office to sign papers. Keep in mind we have excellent credit, about $800K in equity and have not ever had a late payment in 7 years. It's about time a bank did something nice for the good guys. We have a second home that I wish they would look at the same way. Should not matter if it is an investment property as long as the value and credit history are there. we lowered our rate to 4.75 from 5.87. Every little bit helps. Will say the customer service at Chase was EXCELLENT! All questions were answered and fears put to rest. Things could not have gone smoother.
ReplyDeleteI had a similar situation as most above and got my rate lowered by 1% and closed in two weeks. I am perhaps more grateful than most because I had made several inquiries over the past year about refinancing with other mortgage cos. but was told by all that, even though I have a good credit score (low 700s), I did not qualify because my debt to income ratio was to high and, based on what I was told, I wouldn't be under the necessary threshold for several years, by which times rates would probably be quite a bit higher. Apparently, when doing a refi with one's present mortgage co., one need not meet all the stringent criteria that is required when switching to a new co. So I had resigned myself to NOT being able to refi with anyone for several years when this unexpected surprise came by Fedex.
ReplyDeleteOne other thing. The very day before I got the Fedex package, I had, as a lark done an online inquiry on mortgage rates with Lendgo.com, a mortgage broker of some sort. I hadn't done anything like that for months. The next day I got the Fedex from Chase. If A didn't cause B it's a pretty huge coincidence methinks.
Just started the ball rolling. I've been in my house for almost 10 years. The company I work for cut our pay back in 2003 and I currently make what I made in 1997. It's been difficult keeping my head above water so this will help reduce some stress. I have made late payments recently, but I have been paying, including the late fee. We'll see.
ReplyDeleteI too got this offer...and I am thinking about it...but here is why I think they are offering it.
ReplyDelete1. Chase makes more money over time with the "reset" of so many loans
2. This could be the biggest reason...it will change many loans from a NON-RECOURSE STATUS to a RECOURSE STATUS so Chase could just be covering their butts just in case you default....they get your house AND can come after you for the difference.
I would like to know if anyone who got this offer already had a refinanced loan?
RECOURSE LOANS DEFINED:
***These are all the mortgage walkaway trustee sale states, meaning they are non-judicial foreclosure states.
In those states, generally, when they foreclose on you, they cannot pursue you for their financial losses.
Many, such as California, do in theory allow a lender to choose judicial foreclosure but in those cases the lenders only do so if a borrower has significant other assets. This is the "one action" rule that lets the lender either pursue non-judicial foreclosure, at lower cost and less time, or judicial foreclosure that costs more money and takes more time but lets them go after you for their financial losses.***
Alaska
Arizona
Arkansas
California
Colorado
District of Columbia (Washington DC)
Georgia
Hawaii
Idaho
Mississippi
Missouri
Montana (as long as non-judicial foreclosure is used)
Nevada - note that the lender CAN get a deficiency judgment (See below)
New Hampshire
Oregon
Tennessee
Texas (but even in a non-judicial foreclosure, the lender can pursue a deficiency judgment)
Virginia
Washington
West Virginia
These are states that also allow non-judicial foreclosure, and/or where non-judicial foreclosure is more common and deficiency judgments can be obtained more easily:
Michigan
Minnesota
North Carolina
Rhode Island
South Dakota
Utah
Wyoming
http://moneywatch.bnet.com/investing/blog/make-money/what-happens-when-you-walk-away-from-a-mortgage-loan/261/
There has to be some kind of catch to this, i went to the nyc chase branch today and showed the loan officer the documents, he didn't no anything about this program. I don't now something seems fishy, after all how can we trust these banks. the have screwed up the whole dam financial stability of the housing markets around the country, and the why didn't the chase loan officer and his manager no anything about this program? I don't no. dengoun@aol.com
ReplyDeleteI just received my FedEx package with the refi offer. As with most of us, i'm skeptical when something just seems too good to be true. It seemed perfectly legit until it was brought to my attention that they might be doing this because they might not have our original loan documents on our existing loans, which puts them at a disadvantage if God forbid, the worst happens and you're stuck in a foreclosure situation. Since this is not my expertise, i am interested in anyone's feedback that has professional knowledge in this area. Thanks.
ReplyDeleteJust closed today. They dropped us from 7.375 to 5.25 % - saving us $435/mo in interest. No closing costs. No surprises. I was also VERY suspicious at first. I researched the web for hours, I cross-checked everything they told me, I even asked them if the loan becomes a recourse loan. I have it in writing that the loan will remain non-recourse as per the original mortgage agreement. Even if it had become a recourse loan, I wasn't going to turn down the offer. If I pay the saved interest with the new mortgage payment every month, I can pay the loan off 11 years early. If you get the Fedex letter, go for it. :-)
ReplyDeleteI too got this package in the mail, was told no closing costs etc, I was sent THREE different good faith estimates and all 3 were different the final one saying I would have to bring $4,000 to closing, I was lied to by the loan officer, he called my wife at work and tried to talk her into going ahead with the loan after I told him we were no longer interested, lied to her and lied to me, not only am I not going through with the loan with them, I am taking my savings and checking account out of there bank and going elsewhere, I have been a customer of Chase since it was bank one and American Fletcher National bank before that, basically all my life and they are losing me as a customer over their dishonesty
ReplyDeleteI am getting ready to wrap up this refinance this week. I don't think it will finalize before the end of the month. They have told me to skip the April 1st payment. Should I do this? I want to insure that I never skip payments. They said the payment will not be delinquent until the 15th. Is this true? I don't want to screw this up. Any opinions?
ReplyDeleteDid anyone have to pay any interim daily interests?? If so, how much?
ReplyDeleteChase just called me and offered to refinance under the HARP program. I was a little freaked out since I thought it was a scam and I wondered if they are trying to correct the "clean title" issues on these homes.
ReplyDeleteFolks, from what I have learned, your loan has already been sold to Fannie Mae or Freddie Mac. This has nothing to do with HARP.
ReplyDeleteAlthough you will keep paying Chase, your loan is not with them but with one of the above.
Still not sure if this is a good deal, but believe the gov't plays a big part.
You should always keep in mind and read between the lines with loan officer as sometime they add points with no closing cost loans,=.
ReplyDeleteEveryone seems to be getting at least 1% off the interest rate. They only offered me .375% off. It wasn't worth it for me to go back to a 30 year loan. I understand it lowers your mortgage payment, but I would prefer to payoff the mortgage sooner. If I kept the same payments I have now with the new refi, I end up paying 4 months longer.
ReplyDeleteI'm going to post this on multiple forums out of curiousity. We also received the Chase Rate Reduction offer and took advantage of it. Today we received a notification of assignment, sale or transfer of our mortgage. Seems that before we even made the 1st payment, Chase sold the loan off to Fannie Mae. I'm not even sure the ink was dry on the paperwork and they had moved it already. Now I'm surmising this happened to a lot, if not nearly all of the people given the opportunity to refinance. A theory that was floated is that a large amount of these loans had some sort of issue or defect in the paperwork and Fannie Mae would not buy them until it was fixed. Now that the paperwork is clean, the loans were immediately sold. That meshes pretty well with the timeline of our offer, paperwork signing and transfer of the loan. I'm curious to hear other people's point of view. -greg
ReplyDeleteI'm going to post this on multiple forums out of curiousity. We also received the Chase Rate Reduction offer and took advantage of it. Today we received a notification of assignment, sale or transfer of our mortgage. Seems that before we even made the 1st payment, Chase sold the loan off to Fannie Mae. I'm not even sure the ink was dry on the paperwork and they had moved it already. Now I'm surmising this happened to a lot, if not nearly all of the people given the opportunity to refinance. A theory that was floated is that a large amount of these loans had some sort of issue or defect in the paperwork and Fannie Mae would not buy them until it was fixed. Now that the paperwork is clean, the loans were immediately sold. That meshes pretty well with the timeline of our offer, paperwork signing and transfer of the loan. I'm curious to hear other people's point of view.
ReplyDeleteI just received the same package from Chase last week with a deadline of today. Thinking it was some sort of gimmick I didn't pay much attention to it until two days ago. After reading it and seeing this, and other post's online about it, it sounded great and legitimate. My current mortgage is a 30 year fixed at 5.75% they were/are offering 4%. WOW! That sounds like a nice monthly savings, sign me up! I actually couldn't wait to call and refinance. Once I did the wind was taken from my sail. The 4% was true, the only problem was, instead of a 30 year fixed, they were only offering me a 15 year fixed, saying each refinance is based on individual situations and I've already paid over a third of my current mortgage. So instead of seeing a substantial drop in my monthly mortgage payment, which I was looking forward too, it was only going to save me about $50 a month, according to the representative I spoke to. Thinking what the heck, $50 is $50, and if it isn't going to cost me any money why not, so I agreed to go through with it. The procedure was simple, answer a few basic questions and they would send me the legal forms, via email, to look over after which I would have to send back an authorization form and insurance policy information. After that the settlement date would be arranged. Well, after receiving the legal documents, truth in lending disclosure and such, it turns out that if I were to go through with their refinance I would save a whopping $11.03 a month. They added a hazard insurance policy to eat up that roughly $50 a month savings. Give me a break! That is a complete insult, it's a waste of my time. The only reason it probably isn't for them as well is because they're more than likely just looking for numbers, them being able to say they refinanced X amount of mortgages this month, week, or whatever. "See Uncle Sam, we're good guys, now give us tax dollars for this wonderful program."
ReplyDeleteMy mortgage payment is pretty low as it is but if I could have substantially dropped my monthly payment I would have welcomed it. A shorter term mortgage is a negative in cost and insignificant in time because I plan to pay it off in the next few years at most. Only complete disaster will make me keep it going for another 15 years or roughly 20 for my current one. And if I'm only saving $11.03 a month it isn't helping me the least bit. My first thought proved to be true, nothing but a gimmick, at least in my case. And to all the hagglers out there thinking bargain with them, knock yourselves out, if a company wants my business they'll offer me their best deal up front, not insult me and treat me like a sucker. Sadly it seems like more and more businesses are using this type of dealing. They act like they think they have you where they want you and they're doing you a favor instead of them having to earn your business.
My current loan which Chase wants to refinance was originated by Washington Mutual. My bet is that the loan file is a mess and they want to clean it up and sell it to Fannie Mae. They offered me 3.88% down from 4.75%. However, I plan to pay off the loan shortly and would just like to avoid the hassle, so I'll pass. I assume they want an escrow account on the new loan which I do not have now. Don't want that. I also don't want a new bank account with Chase with auto deposit and pay. No thanks. My home is in a revocable trust and that would mean extra work which I don't need. I would save about $90 per month which is not enough for me to go through the bother. Aside from these issues, if I were planning on keeping the loan for a long time, already had an escrow account and no trust I might take Chase up on the offer.
ReplyDeleteWell, seems as though CHASE has a lot of customers, I also enjoy the benefit of a FED ED reduction==============however our's was an orginal WAMU ARM from 01/2000 starting ar 5% it rose to 5.25%----had serious medical and requested a financial reduction in 02/2008. Chase agreed postponed payments for 4 months, re-worked the loan to a 19 yr interest only at 546,00 per month. The FED EX ref changed everthing to a 50 yr fixed rate of 3.0150 and payments of $315.00 per month. Considering I'm 68 yrs old on SS this is wonderful......Thanks Chase
ReplyDeleteI also received the FedEx package and like most was skeptical. My Chase rep said Chase is a servicing bank for freddy/fannie (FF). FF will reimburse Chase for closing costs. That made it sound like a government program. HOWEVER, that means the taxpayers are funding this when FF crashes!!!
ReplyDelete