You rarely see the word “sale” used in connection with mortgage rates. A predetermined discount on a home loan rate before you even sit down to fill out an application is virtually unheard of.
However, Chase Home Loans is doing just that (again). And with the spring home buying season approaching, the timing couldn’t be better.
When is the Chase Home Loan rate lowered?
Chase Home Lending has discounted mortgage rates nationwide with a limited-time mortgage rate sale on purchase and refinance applications, available only from Monday, May 4 through Sunday, May 17.
How much is the discount?
Chase says the discount can be as much as a quarter point (0.25%). For example, an offered rate of 6.5% could be reduced to 6.25%. That would save a borrower more than $20,600 in interest on a $350,000 loan with a 30-year term, and reduce the payment by more than $55 a month.
Mortgage rates are already nearly half a point lower than they were a year ago, so any additional rate reductions could increase your purchasing power or your savings for refinancing.
The rate discount is applied over the life of the loan on fixed rate mortgages. For adjustable rate mortgages, the discount will be applied during the initial fixed rate period of the loan.
There are no discount points or additional fees associated with the offer.
What loans qualify?
The program is available on all Chase home purchase mortgages, including FHA loans. You can also combine your rate reduction with the Chase DreaMaker loan, which has flexible credit requirements.
How to increase your discount even more
The discount can be combined with other Chase Bank programs, such as its relationship pricing program, which applies additional rate discounts of up to 1% to the bank’s customer loans based on new or existing account balances.
The bank also offers down payment and closing cost grants of $2,500 to $5,000 to borrowers in certain areas. Credit guidelines and income limits may apply.
How to Qualify for the Chase Home Loan Rate Offer
To get the discount, qualify for a Chase mortgage and lock in your interest rate by Sunday, May 17. Customers can lock their rate for up to 60 days at select locations, and Chase’s “Lock and Shop” program protects you against interest rate increases for 90 days.
You can also choose a one-time relock option to get a lower rate if mortgage rates drop during your lock period.
While customers must meet standard loan qualification criteria, there are no additional requirements to qualify for the promotional rate. Minimum credit score, loan-to-value ratio and property value guidelines still apply, depending on the home loan program you choose. For example, a conventional loan has a higher credit score requirement than an FHA loan.
The mortgage rate discount may vary by state.