Just as mortgage rates inch closer to 6%, Chase Home Lending gives you a bigger advantage by refinancing your mortgage with a mortgage rate discount for a limited time.
FURTHER: See our picks for the best mortgage refinance lenders.
Chase Home Lending is offering a discounted refinance rate for two weeks, from December 1st to December 14th. If you lock your rate during the promotional period, you’ll get an interest rate reduction, which varies by loan product and location.
“In a high rate environment, even a modest rate reduction can result in significant savings for homeowners,” Bhavesh Patel, consumer channel executive at Chase Home Lending, told Yahoo Finance in an email. “For example, in recent months we have seen clients with an interest rate of 6.5-7% who could benefit from a reduction of 50 (basis points) when refinancing.”
If you combine the discount with other Chase offers, such as relationship pricing, your rate reduction could be up to 1%.
Rate selling applies to both rate and term refinancing and cash-out refinancing.
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A rate and term refinance allows you to replace your old loan with one that has a new interest rate or term length.
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A cash-out refinance allows you to withdraw some of the equity in your home in a lump sum of cash. The money you take from the home’s value is added back to a new loan.
“If you have a high interest rate on your current loan or need extra money, you may want to consider refinancing. You may also consider refinancing if you want to lower your monthly payments or reduce the total amount you pay for your home,” Patel noted.
Homeowners can use Chase’s home value estimator to estimate the equity in their home and how much they can qualify to borrow. The tool allows you to enter your home address and instantly see an estimated value, along with recent comparable sales in the neighborhood.
Interested homeowners can apply and lock in their mortgage rate at a Chase branch, by phone, online, or through the Chase MyHome app.
“As rates fluctuate, locking in a discounted rate for up to 60 days at select locations provides price assurance for customers in a volatile market,” Patel added.
Closing costs can range from 2% to 6%, Patel said. Chase offers a refinance closing cost calculator to help you estimate fees and related expenses. Applicants will need to submit wage verification documentation, such as W-2 or 1099 forms, as well as tax returns and statements from their bank and investment accounts.
It also reminded homeowners that they do not have to refinance with the same lender that issued their mortgage, and you do not need to be an existing Chase customer to qualify for the rate discount. “Comparing lenders can alert you to promotions they may be running or help you find a lender that offers a lower rate or charges lower fees,” he said.
Laura Grace Tarpley Edited this article.