A mortgage is one of the most important financial decisions for any household. Not only is it a type of finance that will provide customers with the keys to their own home, but also an asset to their personal balance sheet. When it comes to the decision-making phase, it’s important that future homeowners are 100% aware of what they’re getting themselves into, and also the options available to them. Chase Mortgages is an interesting mix of options, but does interest stack up when it comes to competing on a global scale? This review takes a closer look to find out if it does.
Find out how this range compares to that of Royal Bank of Scotland.
JP Morgan Chase & Co is the name most people are familiar with, but a recent stint that involved some intense rebranding changed it to a much easier Chase. The rebranding might be as a result of the economic turmoil of 2008, where many of the American banks and even those in Europe had a tough time defending their reputations. The rebranding gave the banks an opportunity to present a fresh visage to their customer, and hopefully, redeem themselves in the public eye. Chase is regarded as one of the major pillars in the financial world, as it didn’t only have banking operations as its background.
Chase played a fundamental role in the upliftment and infrastructure building of the United States, and its role as a key player in the waterworks industry cannot be overlooked. The move to the banking world may have seemed strange at the time, but it seems to have paid off. Chase holds an impressive asset book and also commands a large portion of the banking market share.
Mortgages Made Simple
Although this is a daunting move for any person, applying for a mortgage and maintaining it can be fairly simple if the consumer is aware of all the aspects of mortgage lending. This can be and should be, an exciting phase in any consumer’s life.
Find the Best Deal for the Long Term
Mortgages are paid over 20 to 30 years in most instances, and one of the things that can quickly add up over the period is the interest. Consumers tend to be aware of this and shopping around for the best deal seems simple enough. What many consumers tend to overlook, however, is the fact that there are other fees that creep into the finance that can eradicate all the good a good rate does. Consumers need to have a look at all the fees, charges, penalties, and rates before signing up for the finance.
Shorter Terms Often Mean Savings
It’s tempting to take the bank’s offer of the highest term possible. This means instead of a regular 20 years, consumers are now on the cards for a further 5 to 10 years. This also means the bank has an extra 5 to 10 years of interest from the client. Although shorter terms mean higher installments, it also means the customer pays lower interest over that period of time. The decision to extend the term should be considered with this in mind.
Stick to the Repayments
Life sometimes hands out lemons and when this happens, it’s tough to keep up with the mortgage installments. Before foregoing on the property and deciding to rent again, weigh up the costs to determine whether the move is financially viable. More often than not, rental properties end up a little bit more expensive which may not provide more financial freedom. Also, it’s very hard to apply for a mortgage again if the finances took a knock. Rather find out from the institution whether there is an amortization or holiday period available until the rocky cycle ends. Some institutions even offer to extend the term in order to lower the installments to help out clients in need. Open communication is very important.
Take Advantage of Penalty-Free Offers
Many financial institutions aren’t fond of mortgages being paid off in advance, as it causes an instability on their balance sheets. Others prefer to have a lower risk on their mortgage books and encourage clients to pay in extra, whether these are partial payments or full settlement. When this is the case, customers should take advantage of it in order to get out of debt far sooner than the initial term.
Consumers who wish to save up for a down payment should consider the savings account range offered by Chase.
Chase Mortgages Product Offerings
Chase offers three different categories in the home buying process. The straightforward purchase, refinancing the property and tapping into the equity.
Purchase a Home
In this section, there are two major types of homebuyers targeted. The first is those who are purchasing their properties for the first time and those who are looking to finance further properties.
- Customers are provided with helpful hints and tips during both the purchasing journeys.
- The section exposes customers to terms they should know during the application process.
- Furthermore, customers can start their applications online to save some time in the bank.
- The applications are processed by the home lending advisor.
- Various tips and pitfalls are made known to the client before they purchase their new home.
- Those who are purchasing their next home or further properties have access to some vital information as well. These include tips for retirees, buying at an auction, investment properties, and vacation homes.
- Finally, customers even have access to information that helps them find a home.
Refinancing a Mortgage
This type of agreement takes a look at changing some key elements in the contract that no longer agrees with the client. Furthermore, customers can make significant changes to their agreement years into their mortgage term.
- The refinance agreement is ideal for those who wish to pay off their homes sooner and want to try and avoid the penalties.
- Also, the refinance option is suitable for those who want to lower their monthly payments either due to a lump sum or by extending the term.
- Finally, the refinance option might also be suitable for those who want access to cash.
Using the Home Equity
There are many reasons homeowners would want to access the equity in their properties. For instance, this is a good way for individuals to raise capital for personal projects such as a home business.
- The finance is also a good choice for those who want to consolidate their debt if they’re struggling to maintain their cash flow.
- There may also be some hidden tax benefits for customers.
- Furthermore, customers who wish to purchase a large item and benefit from lower interest rates often use their home equity.
- Finally, this option is not to be taken lightly as the repayment over the longer term might work out a little more expensive.
What We Like About Chase Mortgages
They have segmented the various needs into different categories which allow customers to differentiate between the various options. They also provide customers with plenty of helpful hints and tips throughout the various application stages. For instance, first-time homebuyers are exposed to the confusing bank jargon in an easy-to-understand format. This makes it far easier for them to make the right decision.
The terms and conditions of financing the equity in the property are not bad at all. This option will open doors for homeowners who wish to dip their toes into something a little off the beaten path at a lower interest rate than a credit card.
See how this range compares to that of Bank of Ireland.
What We Don’t Like About Chase Mortgages
There is a lot of information on the site and there are a lot of tabs to go into, but this is where the good ride stops. These bits and bobs of information don’t really paint the entire picture and customers are forced to go into the bank for further information. This is especially for those who are applying for a mortgage for first or subsequent properties.
For us, the most important aspect of any product range is that customers have a quick overview of the products at their fingertips in order to have a clear picture of what they want well ahead of time. This is far more difficult to do when sitting with the banker as they have nothing to go on. The only explanation for the lack of product information is that Chase uses a one-fits-all approach in mortgages.
Finally, pricing is always something we keep an eye out for. This is something we struggle to find in the mortgage category. It’s a pet peeve for us as we want consumers to have a clear understanding of the costs before signing up for any products. There is also no real mention of interest rate scales. Customers would need to apply in order to find out.
Critical Reviews Rating Chase Mortgages – 4 of 10
This is another product that is letting one of the biggest banks in the world down. The lack of vital information is a glaring issue to us. Sure, the other information is helpful but they’re not really decision-making hints and tips. The most comprehensive bit of information is on the equity access portion. This hardly encourages consumers to move over to Chase. We hope the bank is in a position to provide more clarity on the products and their pricing. This will allow them to benefit from a better score.
We recently did a full review on the mortgage range offered by BNP Paribas. Discover what the outcome was of that review.