It felt like a miracle.
We got a FedEx delivery this week containing an offer from our mortgage company (Chase) and we are taking advantage of it. As a result, our interest rate and monthly payments will drop; our interest-only loan will now become a principle-paying 30-year fixed; and the best part, there are absolutely NO charges involved. No closing costs or fees.
The Chase employee said the bank was being pro-active, in an effort to keep their best customers secure in their home mortgages.
The rate they offered us is a bit higher than the market norm (5.15%), but still a good deal overall, especially because we tried to refinance earlier this year, but backed out, because the appraisal was so low, we couldn’t get the loan without adding expensive mortgage insurance, which would have made our payments much higher — even though our credit rating couldn’t be better.
Kudos to Chase for helping their best customers. The Chase rep didn’t know how many other people were being offered this deal, but they are getting 70-80 % response rate because of the special deliveries. They are not publicizing their effort through press releases or anything, but I said it is a REAL good news story, especially when people have such a low opinion of large banks.
This was an outstanding turn of events for our family, and for probably thousands of others. More banks should follow Chase’s example.
Just got one of these offers myself. From what I can determine they are offering these to “lock-in” customers versus competitors, which can actually offer better rates if you shop around. While you waive the $3000+ in fees to refinance with another mortgage lender by sticking with Chase, you also might miss out on another Lender offering you an even lower rate, with greater savings that the $3K overall.
Going to research on this a few days before accepting.
Indy: Well, of course, we realized this. But, for us this offer of 5.1% was a Godsend because our home value had plummeted so far, that appraisals could not bring it up high enough to get us a loan without having to add PMI insurance, which would have added $250 to our monthly payment, making it unaffordable. So Chase offered us the loan with no appraisal, no PMI.
I am shocked to hear this… (happy for you), but I have desperately been trying to work with Chase since 02/2009 to nothing but frustration, contradictions, lies, and horrible advice. I am glad they helped one person.