• 1 234512
  • Page
  • Text Only
Voting History
rated:
Background: I was 2+ years into a 15-year fixed mortgage at 5.625% with Chase already. Quite happy with their service. No escrows for taxes or insurance. Liked the ability to just walk into any branch and make a payment that gets credited the same day. But for the past 6 months I've been trying to refinance and get a lower rate.

It has been difficult to track rates. One thread in this forum gives MBS which is inversely prop. to rates but it's still difficult to figure out actual rates. Bank e-mails always seem to quote higher rates than I think I can get, and the 1 or 2 lenders I talked to insist on an application to even keep sending me rates. I was concerned about credit history hits due to applications - I know they get lumped for some time but not if the refi search goes on for a long time.

I called Chase a few weeks back on my own. Yes, they could refinance - with closing costs, fee, etc. - nothing special. They also kept sending letters asking me to call for lower rates. I still had to work out when/whether these costs will be recovered thru the savings, so I never called back. And then things changed ...

Exactly two weeks ago, through FedEx, Chase sent me another rate reduction notice. The FedEx caught my attention obviously - but this letter also promised zero closing costs and a locked rate of 4.25% for a 15-yr fixed. Sounded too good to be true. Internet searches vaguely mentioned these as scams, but I decided to call the number anyway. It seemed authentic since the person at the other end (Chase Home Finance in Ohio) had all the details about my existing loan as expected. He confirmed again that there would be no closing costs at all. My monthly payment would drop by about 25%. All I had to do was fax them a 1-page borrower authorization form and proof of homeowner's insurance.

In 3-4 days I received a package at home with a GFE. No surprises there (Loan Amount = Principal owed on prev mortgage + outstanding interest on prev mortage + first partial month's interest on new mortage). The following were all credited back by Chase leading to a zero increase in loan amount: Title Service and Lender's title insurance ~ $1250, Tax service to Chase ~ $45, Govt recording fee ~ $190. No appraisal fees and what-not. Eveything looked ok, but I was planning to read through it again before 'sending it back'. But the next day I got a call from Chase asking me when I would like to schedule the closing (Apparently there was nothing to 'send back'). We decided on a day 4 days away - a local notary from the title company showed up at my place (a couple of states away from Ohio) and the closing was done.

The whole process from receiving the Fedex to closing took two weeks. It was fairly effortless. There was some back and forth over very minor amounts - and a $40 recording fee (for the old loan, I was told) showed up at the closing when I was told it would not. Minor things obviously.

The new loan has no prepayment penalties. I didn't feel a need for a lawyer since things were very straightforward. No points. No fees for removing the tax/insurance escrow. Just a rate drop from 5.625% to 4.25% with no closing costs. Obviously, a 2-year extension to the term of the loan, and two months of interest-only payments.

One more thing: The new loan account is eligible for a 1% CashBack every year on the regularly owed principal+interest payments.

I have no connections to Chase other than being an off-and-on customer over several years.

EU

Member Summary
Most Recent Posts
LOL Thanks Eurekaa. The first week was my fault, I didn't call until 4/11 ! I guess that still was a bit slower, but... (more)

brainpain (May. 05, 2013 @ 6:58p) |

My refi is scheduled to close on June 12th. My rate is dropping almost 3 percent! I'm glad I held out for this offer. ... (more)

Jmanolinsky (Jun. 05, 2013 @ 1:38p) |

Went through the Chase Super Streamline Program and completed within a month. A neighbor of mine actually received the F... (more)

justdefended (Jul. 26, 2013 @ 4:37p) |

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.

eurekaa said:
Exactly two weeks ago, through FedEx, Chase sent me another rate reduction notice.


similar happened to me, from CITI Mortgage. I thought those guys must be crazy.
Property value: 200k
Loan balance: 98k


reasons I think they're crazy:

- loan of only 98k, not much money to be made for them

- I am at 5.5% already (15yr term), it's not that bad

- property is obviously out-of-state rental, no way they will really refi that

- I am self-employed (and they know this from conversations on the other 3 mortgages that I recently had with them) --> no refi for me

- I already have 10 mortgages and Fannie Mae/ Freddie Mac does not like more than 4 (I have reserves for 2 or 3 years, but citi did not care when I called them)

- on top of that, they sent me this junk mail 'UPS over night' - CITIMortgage marketing is overfunded

That flyer went straight to trash.

Funny thing is, they sent me this several times before, always for this one property. Must be because of my 50% LTV.


Good to see that you got an improvement, from 5.6% to 4.25%. I wish I could get it.

Has anyone been able to call Chase and request a modification like this? I tried, and kept getting bounced around different departments by incompetent CSRs. It sounds as if their "loan modification department" only handles distressed borrowers, and their refinancing department doesn't handle modifications.

I have mortgage with suntrust and I am getting similar deal from them (4.25% for 15 year fixed) with no closing costs.

I plan to lock on monday.

ptiemann said: eurekaa said:
Exactly two weeks ago, through FedEx, Chase sent me another rate reduction notice.


similar happened to me, from CITI Mortgage. I thought those guys must be crazy.
Property value: 200k
Loan balance: 98k


reasons I think they're crazy:

- loan of only 98k, not much money to be made for them

- I am at 5.5% already (15yr term), it's not that bad

- property is obviously out-of-state rental, no way they will really refi that

- I am self-employed (and they know this from conversations on the other 3 mortgages that I recently had with them) --> no refi for me

- I already have 10 mortgages and Fannie Mae/ Freddie Mac does not like more than 4 (I have reserves for 2 or 3 years, but citi did not care when I called them)

- on top of that, they sent me this junk mail 'UPS over night' - CITIMortgage marketing is overfunded

That flyer went straight to trash.

Funny thing is, they sent me this several times before, always for this one property. Must be because of my 50% LTV.


Good to see that you got an improvement, from 5.6% to 4.25%. I wish I could get it.


Hmmm - my recent FedEx from Citi offered to drop my rate with a tiny asterisk - called and the fees were about $5,000. Now I'm already at 5.25 for a 20 year. Could go lower of course but was much better off if I were to spend the $5 to throw it on my loan principal. Are you SURE they weren't charging closing fees?

I'd also like some GFE

This is great. I wish we could understand the trigger for these programs. So, I do have a question, you indicate that you did call Chase about refinancing (but didn't go through with it). Did that process of what I would call for Chase a 'failed sales call' possibly get you into consideration for such unrequested unsolication? Also, how far did you go into the process with Chase prior to the 'FedEx' advertisement? Did you run numbers and get pre-approved via the Chase phone refi person?

I have to admit that your ability to also get into the 1% 'rebate' program is excellent as well because I tend to feel Chase is not very competitive in the refi market due to higher closing costs (which you avoided).

Rasheed

Looks like they just want to do these for PR and the gov't probably pays them money to cover the difference, they are going with safer bets than helping people who are in trouble.

rasheedb,
1. My initial contact with Chase about re-financing was a brief 5-minute call. No pre-approvals from Chase. I don't believe that could have been the trigger.
2. If it matters, my LTV is around 50-55%.
3. The 1% rebate is a few hundred $s of savings a year. If my regular payments total $25k every year, that's $250. Doesn't apply to additional principal payments. It's been available only since Sep 2009 or so, so my previous mortgage account was not eligible for it.

op what is the number to call chase?

Perhaps if call this dept we can also get this deal

Making your mortgage more affordable so you won't pull a "strategic default" on them?
Government must be paying them refi cost. Bankers don't do crap for you unless it benefits them.

My callback # was 866-818-7033 (They did ask me for the reservation # from the Fedex-ed letter).
My letter was mailed 5/26 (received a day later) and I was asked to call in a week (by 6/2).

Although I don't think it's exhaustive, here's the fine print on "Chase Rate Reduction Program Eligibility Criteria"

"
We believe you are eligible for this special program based on information available at the time this mailing was prepared. Eligibility is subject to a few basic items:

1. You must respond on or before the expiration date 6/2/2010 and provide certain information we will request.
2. This program is conditioned on verification that:

* 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, forclosure, judgements or liens
* borrowers on the new loan should remain the same as the orginal 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

3. This offer is not transferable to another property or person.

*No Closing Costs: The customer is not reponsible to pay any bank fees which means no application, processing, appraisal, credit report or origination fees. Third party costs associated with closing the loan are also waived. Interim interest and any tax or insurance escrow shortages must be paid by you.

*The amount you save on a refinanced mortgage may vary by loan. Since a refinanced mortgage may have a longer term than your current loan, you may not realize savings over the entire term of your new loan.
"

whodini said: Making your mortgage more affordable so you won't pull a "strategic default" on them?
Government must be paying them refi cost. Bankers don't do crap for you unless it benefits them.

Good plan by them. In many states refinancing your home loan makes it a recourse loan and they can go after you if you default.

At least it really helps people who want to stay in their homes by letting them refi if they don't have 20% equity.

I also found the same letter today at my door. Doing some internet research on this thing. My current rate is fixed at 5.5 and I have 28 years left on the loan. They are offering a new rate at 4.88 which I calculated would be a monthly savings of 88 dollars.

Seems pretty nice, hmm........

I got the same deal with Chase last week and sign on Friday the 18th.We received a FedEx package and I called them. Our rate is going from 5.625% to 4.88% no closing cost, no fee's. I have about 20% equity in my home. We are on year 2 of a 30 year fixed. By refinancing back to 30 years and getting the lower rate, we save about $150 a month. Perfect timing, we really needed this!

What is the name of this amazing program??? I am about to close on a HARP refi with Chase that is costing me thousands in closing costs with a rate of 4.375 for 15 years.

I do have a HEL (second mortgage) so that may disqualify me...

Man, I need one of these magic FedEx packages. Although my mortgage is through Citi, not Chase.

I called the number but the loan specialist had never heard of a no cost refi. He did say that I have a one time right to negotiate my rate. Any more info or codes that came along with your package?

Not much more info. The program is called the "Chase Rate Reduction Program". If your HEL is with Chase you could still be eligible. If it's with someone else, I'm not sure.

Man I wish BOA would send me a package like that.

I just received the Fed Ex today. I am 27 months into a 30 yr 5.5% fixed with a 99K principal and a 50-50 LTV. The offer was 4.875%. It ultimately would reduce my monthly P & I payment by 10%. I am sitting on the fence on this as the clock will start again on a 30 year term, and the 15K already paid(which really just hit the interest), will be sacrificed. It would take almost the whole 30 years to reach the breakeven with the 50 bucks a month I would be saving. On the other hand, who stays in their home 30 years? People generally move on, up, down or change their situation in 10 years or so, long before the principal gets much of a touch. They are obviously making additional money on the initial loan, even when you consider that they are absorbing the closing costs. The Fed Ex tactic creates a sense of importance and urgency that helps sell the product. Not too many people with 50% into the house would walk away, so Chase's risk of the owner's default is low. It would take quite a crash for the value to fall in half again.

TyinPS said: I just received the Fed Ex today. I am 27 months into a 30 yr 5.5% fixed with a 99K principal and a 50-50 LTV. The offer was 4.875%. It ultimately would reduce my monthly P & I payment by 10%. I am sitting on the fence on this as the clock will start again on a 30 year term, and the 15K already paid(which really just hit the interest), will be sacrificed. It would take almost the whole 30 years to reach the breakeven with the 50 bucks a month I would be saving. On the other hand, who stays in their home 30 years? People generally move on, up, down or change their situation in 10 years or so, long before the principal gets much of a touch. They are obviously making additional money on the initial loan, even when you consider that they are absorbing the closing costs. The Fed Ex tactic creates a sense of importance and urgency that helps sell the product. Not too many people with 50% into the house would walk away, so Chase's risk of the owner's default is low. It would take quite a crash for the value to fall in half again.

What the heck are you talking about? Why do you lose the equity by refinancing? Why can't you pay it off in 15 years by sending in extra principal payments? What am I missing?

TyinPS said: I just received the Fed Ex today. I am 27 months into a 30 yr 5.5% fixed with a 99K principal and a 50-50 LTV. The offer was 4.875%. It ultimately would reduce my monthly P & I payment by 10%. I am sitting on the fence on this as the clock will start again on a 30 year term, and the 15K already paid(which really just hit the interest), will be sacrificed. It would take almost the whole 30 years to reach the breakeven with the 50 bucks a month I would be saving. On the other hand, who stays in their home 30 years? People generally move on, up, down or change their situation in 10 years or so, long before the principal gets much of a touch. They are obviously making additional money on the initial loan, even when you consider that they are absorbing the closing costs. The Fed Ex tactic creates a sense of importance and urgency that helps sell the product. Not too many people with 50% into the house would walk away, so Chase's risk of the owner's default is low. It would take quite a crash for the value to fall in half again.1. Do not worry about what you have already paid, that does not factor into the decision. Not sure if $99K is the original principal or current balance, but assuming it is original principal and the current balance is around $96K, it's not like the loan will reset to $99K for 30 years. It will be $96K for 30 years. There's nothing you can do with the approximately $3K principal and $12K interest payments you have already made.

2. What you should calculate is, if you paid that extra $50 into your new loan ($96K at 4.875 for 30 years), will you be able to pay it off sooner than the remaining 27 years and 9 months of your current loan? If you use some of the mortgage calculators available, you'll find out that you will be paid off in 24 years and 9 months, saving 3 years worth of payments.

Bankrate's Mortgage Calculator

eurekaa said: My callback # was 866-818-7033 (They did ask me for the reservation # from the Fedex-ed letter).
"


Called this number - almost immediately was connected to a helpful and competent rep, but he was thrown for a loop. Reason being is that this is a targeted offer. He made a couple interesting comments. One was that he hadn't quite figured out the formula for how people were being selected. Said that it was being made 'above his pay grade', and he was also hoping to receive a Fedex'd letter from Chase =)

Not sure if I got the same letter -- mine has a callback number of 800-550-7485.

Called and got a semi-usual straight refinance spiel. Good news is I am in NY and would avoid all of the NY Mortgage taxes by refinancing with Chase. My rate is 5.375% now, and I got 4.875% (1/2% lower) with a 1.625% credit at closing towards closing costs. So my net at closing is about $700 in fees, and I save 1/2% per year which makes this a less than 1 year payback on a ~$225k loan balance.

I am purposely not comparing monthly payments because it is apples and oranges -- I will save $400 per month, but my loan term goes from my current remaining term of 12 to 15 years. So I'd rather look at the annual interest savings of ~$1,100 (initially) and not look at the payments.

As disclosure -- loan is in good standing, less than 50% LTV (although the letter says upto 125% LTV), and is eligible for the 1% Cash Back program (I am long-standing Chase banking customer). I have to bring new escrows to the closing, which I don't care about as I will get my current escrows back within a couple of weeks.

THANKS OP -- I pretty much tossed this letter in the junk pile on my desk, and upon reading your post decided to "give it a whirl" by calling to see what the catch is. I have a pretty decent finance background, and I while I don't know what the closing costs are, I really don't care since the credit is covering most of them. $700 out of pocket to drop my rate 1/2% is just fine with me.

I got my magic package today too!!! I'm also a JPMC employee btw but had heard -nothing- about this. I'm going from 6.13% to 5.00% and you'd better believe I stopped *everything* to make the call as soon as I saw this. Made my week/month/(year?)!!!!

I got my magic package today too!!! I'm also a JPMC employee btw but had heard -nothing- about this. I'm going from 6.13% to 5.00% and you'd better believe I stopped *everything* to make the call as soon as I saw this. Made my week/month/(year?)!!!!

I got my magic package today too!!! I'm also a JPMC employee btw but had heard -nothing- about this. I'm going from 6.13% to 5.00% and you'd better believe I stopped *everything* to make the call as soon as I saw this. Made my week/month/(year?)!!!!

I got my magic package today too!!! I'm also a JPMC employee btw but had heard -nothing- about this. I'm going from 6.13% to 5.00% and you'd better believe I stopped *everything* to make the call as soon as I saw this. Made my week/month/(year?)!!!!

anyone else here went through with this thats not a "new member" ? Was wondering what fee's you had to pay.

You said you already got the letter. Just take a break from your internet research and give them a call.
Or else, you could wait a bit longer. May be there's something bigger and better waiting for you.

The only fee I had was a $40 fee for closing the old mortgage. But while talking to Chase this morning to make sure the loan payoff went as planned, I was told that my old mortgage was overpaid by $40 and they will be mailing me a check. So, depending on whether I really get the check or not, my total fee for the refi is either $0 or $40. (Update: That appears to be some overpaid interest getting refunded. So, my final fee is $40).

Xarthan posted Jun. 17, 2010
anyone else here went through with this thats not a "new member" ? Was wondering what fee's you had to pay.

Xarthan posted Jun. 15, 2010
I also found the same letter today at my door. Doing some internet research on this thing. My current rate is fixed at 5.5 and I have 28 years left on the loan. They are offering a new rate at 4.88 which I calculated would be a monthly savings of 88 dollars. Seems pretty nice, hmm........

TyinPS said: I just received the Fed Ex today. I am 27 months into a 30 yr 5.5% fixed with a 99K principal and a 50-50 LTV. The offer was 4.875%. It ultimately would reduce my monthly P & I payment by 10%. I am sitting on the fence on this as the clock will start again on a 30 year term, and the 15K already paid(which really just hit the interest), will be sacrificed. It would take almost the whole 30 years to reach the breakeven with the 50 bucks a month I would be saving. On the other hand, who stays in their home 30 years? People generally move on, up, down or change their situation in 10 years or so, long before the principal gets much of a touch. They are obviously making additional money on the initial loan, even when you consider that they are absorbing the closing costs. The Fed Ex tactic creates a sense of importance and urgency that helps sell the product. Not too many people with 50% into the house would walk away, so Chase's risk of the owner's default is low. It would take quite a crash for the value to fall in half again.

What are you smoking? If the refi is no cost, then do it. If you want the length of the loan to stay the same, then just calculate what it would take so you pay off the mortage at the same date as your current one and pay a little more than the monthly payment each month and put it towards principle. You'll still save money in interest over the next 27.75 years.

I called Chase today. The CSR told me that, while I could do a regular refi, there's no way that he could modify the rate on my existing mortgage. I can't say this is a huge surprise - Wamu originated the loan in 2003, and I suspect it's long since been sold, securitized, or otherwise mutilated so that Chase doesn't have authority to do anything to it except in "special servicing" situations.

I just gave them a call, I first called Chase Mort first from their number on the website to first verify that the number I'm calling is actually Chase (yeah I'm paranoid)

Anyways spoke to a great person. They had all my mortage information with the right numbers. I didn't have to give any information other than my street address and the last 4 of my SSN.

Basically is what they said, no cost, they'll wrap up my loan and do some 30 day interest thing that gets tacked on to my escrow.

If you elect to do the auto withdraw with Chase they will give you a 1% Cash Back every year.

Overall it was a pretty easy and great experience. They said the fees are being absorbed by Freddy Mac and Chase and this program is being mostly to the West Coast states.

whodini said: Making your mortgage more affordable so you won't pull a "strategic default" on them?If the OP is at 50%-55% LTV, there isn't any room for a strategic default.

These types of programs have been available for years, primarily through Wells Fargo. WF used to send out similar offers to people offering to refinance their current mortgages with them without any closing costs and at great interest rates.

Who knows how lenders' marketing departments decide whom to target? It must be the same secret logic that some people get letters from AMEX offering them a credit card with a 50,000 MR bonus, while other people only get 25,000 offers or none at all.

just found out my parents mortgage is some how either owned or serviced by chase, going to give them a call tomorrow to see what they can do (they are closed today already)

in their statement there is a thing about a 1% rebate but nothing about the rate reduction.

Hc000 said: in their statement there is a thing about a 1% rebate but nothing about the rate reduction.

yeah they told me that's a new marketing thing to get people to setup auto withdraws from their chase account.

I am into the 2 year period of 30 year loan at 5.5% with Chase and got the same fedex letter 2 days back offering 4.88%. I called the number and they sent me a GFE after asking some questions. The GFE shows that the fees in lines 1-8 are credited back by Chase but they did increase the loan amount by 1% to cover for escrow deposits and daily interest charges based on lines 9-10. Is this something I should be worried about? I don't like the thought of increasing the principle amount somehow. Thanks for all the people who posted valuable information here.

Just got off the phone with chase, Targeted offer, and unless you got one of those fedex things, you WILL pay the closing costs. The Rep sounded like he had many calls about it.

Skipping 414 Messages...
Went through the Chase Super Streamline Program and completed within a month. A neighbor of mine actually received the FedEx mailer and I called in asking if I had a reservation number and I did. There is a credit check but no income verification and the only liability listed is the property to be refinanced, which had to be the primary and owner occupied. You do need to provided the home insurance declaration and bank statements for two consecutive months.

After signing and returning the paperwork I had a loan officer contact me within two weeks. They do conduct a few checks with the underwriter as far as cross-checking your bank statement address and asking if you recognize any other names or aliases. But this is VERY streamlined compared to any other refi, which would normally require full doc, W2s, income verification, pay stubs, etc.

After about two days after the initial contact from the loan officer I was approved and scheduled to sign a week later. The entire process took about a month and the new loan should be active within three weeks. Was able to lock in at 3.875% for 30-year fixed.



Disclaimer: By providing links to other sites, FatWallet.com does not guarantee, approve or endorse the information or products available at these sites, nor does a link indicate any association with or endorsement by the linked site to FatWallet.com.

Thanks for visiting FatWallet.com. Join for free to remove this ad.

TRUSTe online privacy certification

While FatWallet makes every effort to post correct information, offers are subject to change without notice.
Some exclusions may apply based upon merchant policies.
© 1999-2014