Chase Bank Mortgage Rates, On Par with National Averages but not at Par.

Chase bank, currently one of the major players in mortgage lending, is offering mortgage rates today on par with current national averages, but just above true par rates. Today’s mortgage rates, according to FreeRateUpdate.com research of wholesale mortgage lender’s rate sheets, are as low as 4.75 percent, fixed for 30 years. Chase mortgage ratesare just above our reported par rates, but still below national averages reported by Bankrate.com (5.16 percent) and Freddie Mac (5.04 percent).

Chase Mortgage Incentive – 1 Percent Cash Back

Chase has an interesting incentive right now, offering cash back on your mortgage. We’ve never heard of this before and Chase claims to be the first and only bank doing this. Don’t get too excited about this. We took a good look at it and it turns out to be a bust. Take a look at an example of the savings you get from the 1 percent cash back program, straight from the Chase website.

Interest Rate: 5.75%
Loan Amount: $300,000
Monthly Payment: (principal and interest) $1,751
Monthly 1% Calculation: $18
Annual 1% Cash Back: $210
That’s honestly not much of a savings we think they should go ahead and scrap that program. On a three hundred thousand dollar mortgage fixed for 30 years at 5.75 percent, if you’ve got a Chase checking account and register for the 1 percent cash back incentive, you save annually just $210. It’s interesting they use 5.75 percent as the example interest rate because that’s way above market and adds to the savings as the 1 percent is based off of an interest and principal payment which is obviously more as the interest rate goes higher.

Current Chase Mortgage Rates

Chase seems to be an 1/8 percent above true par rates, reported by us, across the board. We’ll keep an eye on Chase’s mortgage rates to see if they go lower, or higher in the next few days. The benchmark treasury yield has been pretty active, so it’s likely they’ll move at least slightly. If Chase continues to price their mortgages an 1/8 above what’s really available it’s going to be tough for them to draw the savvy borrowers in. Some people of course refinance or purchase a home with financing from Chase because they’ve been around forever.

Source -mortgage.chase.com