Chase home equity loan rates today -
JPMorgan Chase and Co. is one of the nation’s oldest financial firms, tracing its roots to and the founding of the Bank of Manhattan Company. It bears the names of two of the most prominent firms in American banking history – J.P. Morgan and Chase Manhattan, which merged into a single company in
With $ trillion in assets, it is ranked by Forbes magazine as the world’s largest publicly traded company. Despite the merger, it maintains two separate identities – the Chase brand for its consumer banking division, while the JP Morgan brand encompasses its investment banking and asset management operations.
The company ranks as the #3 mortgage bank in the United States, in both lending and mortgage servicing, trailing Wells Fargo and Bank of America, respectively, in both categories.
Mortgage Rates and Products
JP Morgan Chase offers a broad variety of mortgage products for both home purchases and mortgage refinancing. Fixed rate-mortgages are available in terms of 10, 15, 20, 25, 30 and 40 years. Adjustable-rate mortgages (ARMs) are available with initial terms of 1, 3, 5, 7 and 10 years, fully amortizing over 10 to 40 years.
The lowest mortgage rates are available on the mortgages with the shortest terms; for example, interest rates on year fixed-rate home loan are considerably lower than those on the year mortgages. Interest rates on ARMs are usually even lower, since the rates are locked in for a shorter term, although once the initial term is over they regularly readjust to a new rate based on the current mortgage market.
A special Chase program for first-time homebuyers, called DreaMaker Mortgage, offers down payments as low as 5 percent on fixed- and adjustable-rate mortgages of up to 40 years. Closing cost assistance may be available as well. Chase is also an authorized FHA lender, with fixed- and adjustable-rate mortgages are available for both first-time and repeat homeowners.
Chase also offers jumbo loans, which are mortgages that exceed the limits for conforming loans backed by Fannie Mae or Freddie Mac. Depending on where the property is located, those limits range from $, to $, Chase will make jumbo loans of up to $2 million; interest rates tend to run somewhat higher than on conforming loans.
One perk that Chase offers its customers is a 1 percent cash-back incentive for borrowers who sign up to have their mortgage payments automatically deducted from a Chase checking account. The incentive, up to $ a year, can be paid out directly or deducted from mortgage principle. The option is only available at the loan closing and the borrower must have a Chase checking account set up at that time.
Refinancing a mortgage through Chase can enable a borrower to reduce their monthly payments, pay off their home loan faster or borrow against their home equity through a cash-out refinance. In most cases, you do not have to be a current Chase customer to refinance your mortgage through Chase.
For the most part, Chase mortgage refinance loans are identical to those offered for home purchasing. Both fixed- and adjustable-rate loans are available, over the same terms as those offered for home purchases. Often, the main difference is that instead of a down payment, the loan is partially secured by the borrower’s existing equity in the home.
The Chase 1 percent incentive for signing up for direct payments at the loan closing, described above, is available on refinanced mortgages as well.
For homeowners who normally would be unable to refinance because of a lack of equity in their homes, Chase is a participant in the Home Affordable Refinance Program (HARP). This program, backed by the federal government, allows certain creditworthy borrowers who have little home equity or are even “underwater” on their mortgages – owing more than their home is worth – to refinance at lower rates. Borrowers may also extend their mortgage term to further reduce their monthly payments or shorten it to pay their mortgage off faster.
To qualify for HARP, borrowers must have a conforming mortgage owned or guaranteed by Fannie Mae or Freddie Mac. Homeowners may need to be current Chase customers to obtain a HARP refinance through Chase. The program is set to expire at the end of
Home Equity Loans
Chase offers several options for homeowners who wish to borrow against their available home equity. This is often a popular choice for borrowers seeking money for home improvements, medical expenses, college costs, debt consolidation or other major expenses. Since home equity loans are a type of mortgage, the interest is typically tax-deductable, which offers an advantage over other types of loans.
A Chase home equity loan provides a lump sum of cash that is repaid over a period years at a fixed interest rates. Basically, it’s a second mortgage on your home. Interest rates tend to run somewhat higher than on a primary mortgage.
A Chase home equity line of credit (HELOC) makes money available as you need it. It works like a credit card secured with a portion of your home value as collateral. You can borrow small amounts as you need them, up to a pre-approved limit. Interest rates are lower than on a regular home equity loan and typically are variable. However, Chase allows you to lock in the rate on a portion of the money borrowed through a HELOC, with up to five separate locks allowed.
Another way to borrow against your home equity is with a Chase cash-out refinance. With this approach, you refinance your entire mortgage at a new interest rate, and take out some of your accumulated equity in the form of a cash payout. This offers the lowest interest rates of all home equity loan options and reduces the rate on your entire mortgage, so the savings can be considerable. However, the closing costs are typically much higher than on a home equity loan or HELOC.
Chase does not presently list reverse mortgages among its home equity products for borrowers.
The web site for mortgages and other consumer banking under the Chase brand is .
Customers seeking to inquire about a new loan or to refinance an existing one may call or visit a local Chase branch.
Calls about an existing loan or other customer care issues should be directed to
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Consider a Home Equity Line of Credit1
1 Terms and Fees: Home Equity Lines of Credit (HELOCs) are subject to credit qualification and collateral valuation. Fees, conditions and restrictions apply. Product details can be found in our Important Terms Brochure; ask for a copy or click here. Offers subject to change without notice. Evidence of adequate property insurance required. Combined total discounts may not exceed % for the draw period or lower the rate less than the floor of %.
All HELOCs feature a year variable rate draw period requiring a monthly interest-only payment subject to a $ minimum. Annual Percentage Rate (APR) during the draw period may change as often as monthly. The draw period is followed by a fixed-rate fully-amortizing repayment period of , or months, depending on the balance at the end of the draw period. APR during the repayment period will be fixed, based on the Prime Rate in effect at the end of the draw period, plus a margin and other factors. The APR will not exceed % (% APR in Oklahoma) and will not go below % regardless of your qualifying margin or applicable discounts. Fees: an annual fee up to $75 applies subject to state law limitations; a $ Fixed Rate Loan Option fee may apply if option is exercised or reversed. Ask a Bank of the West representative for details.
The APR for a HELOC during the draw period is variable based on the Prime Rate as published in The Wall Street Journal, plus a margin. The Prime Rate as of March 16, is %. As of October 1, , margins range from % to % with corresponding APRs ranging from % to % for lines of credit between $15, and $2,, and are subject to change at any time. APR will depend on factors including property value, location, and occupancy status, creditworthiness, existing debt against the property, approved line of credit amount, and your account relationships with Bank of the West.
2 Automatic payment discount of % off the standard rate requires applicants to establish automatic monthly payments from their new or existing Bank of the West personal checking or savings account. Discounts may be reversed and your rate and payments may increase if automatic payments are discontinued for any reason. All terms and conditions applicable to the checking or savings account apply, including fees and minimum opening deposits. Additional benefits may be available for eligible customers of Bank of the West and its affiliates (ask us for details).
3The HELOC Energy Efficiency Discount is subject to change at any time. Discount is % off standard rate sheet pricing for the draw period. Applicants must finance at least $ for new solar energy equipment or energy efficient products in order to qualify for the discount. Applicants provides - no less than 10 days prior to account opening– a written estimate satisfactory to Bank of the West from a licensed contractor for the purchase and installation of an eligible energy efficiency product. (Click here to review our complete list.) The written estimate must be dated no earlier than 60 days prior to account opening and not expire until at least 5 days after account opening. Written estimate must clearly identify products being installed and indicate ENERGY STAR certification (except solar). Bank of the West reserves the right to verify the written estimate, the validity of the renewable energy improvement, and may request written certification of the applicant's intentions.
4 A balance-based discount of % off our standard margin for every $10, drawn up to a maximum of % (for advances of $, or more) is available for new Bank of the West HELOC customers with an initial advance of least $10, taken on the date of HELOC opening (subject to the credit limit and a rescission period, if applicable). The amount advanced at HELOC opening will determine the margin for the remainder of the year draw period. An initial advance amount of less than $10, is not eligible for this promotion.
5 Fixed Rate Loan Option ("FRLO") rates are determined based on factors in effect at HELOC origination. Requirements and limitations are applicable to FRLOs. Details can be found in our Important Terms brochure. You may convert all or a portion of your outstanding variable rate principal balance using a FRLO, resulting in a fixed rate and fixed payment of principal and interest for the balance converted. The minimum advance from an existing HELOC that can be converted is $5, The minimum FRLO term is one year, and the maximum term varies based on the amount you choose to convert. Rates for the FRLO are often higher than the current variable rate on the HELOC account. Minimum payment due on a FRLO includes principal and interest in fixed monthly payments, subject to a minimum payment of $ per month, in addition to the payment due on any separate variable rate balance. There is a $ Fixed Rate Loan Option fee, payable each time you establish or reverse a FRLO.
6 Calculators are provided as a convenience. Bank of the West makes no warranties about the accuracy or completeness of the calculations.
Bank of the West Wealth Management Group provides financial products and services through Bank of the West and its various affiliates and subsidiaries.
Securities and variable annuities are offered through BancWest Investment Services, a registered broker/dealer, member FINRA/SIPC, and SEC Registered Investment adviser. Financial Advisors are Registered Representatives of BancWest Investment Services. Fixed annuities/insurance products are offered through BancWest Insurance Agency in California, (License #0C) and through BancWest Investment Services, Inc. in all other states where it is licensed to do business. This is not an offer or solicitation in any jurisdiction where we are not authorized to do business. Bank of the West and its various affiliates and subsidiaries are not tax or legal advisors.
Bank of the West is a wholly owned subsidiary of BNP Paribas.
Investment and Insurance Products:
- NOT FDIC INSURED
- NOT BANK GUARANTEED
- MAY LOSE VALUE
- NOT A DEPOSIT
- NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
Best HELOC Rates of
Home equity lines of credit — better known as HELOCs — are a viable option for borrowing against the equity in your home in order to pay for some of life’s big expenses, like education costs, medical debt or home renovations. They can be a good alternative to high-interest credit cards or personal loans, especially when you’re in need of funding a large purchase. The best home equity loan rates are well below the rates you get with personal loans and other forms of credit.
Let’s take a closer look at HELOCs, how they’re different from other loan products, and who are the lenders providing the best rates out there today.
7 Best HELOC Rates of
|PenFed Credit Union||%||$25,,||Interest-only HELOC option (for members)|
|Bank of America||Varies||$25,,,||Interest rate discounts and ability to switch to fixed-rate option|
|Chase Bank||%||$50,,||Interest rate discounts and ability to switch to fixed-rate option|
|PNC Bank||Varies||$10, % LTV||Relatively few fees with little transparency about their loan terms|
|SunTrust||% %||$10,,||No closing costs if you keep the account open for 3 years|
|U.S. Bank||%%||$15,,||Interest-only HELOC option|
PenFed Credit Union — Starting at % APR
As with all credit unions, you have to be a member of PenFed Credit Union in order to gain access to their products. That said, once you join, they offer an array of home equity options to choose from. This includes an interest-only HELOC option, which allows you to only pay the interest on your line of credit during the draw period, which will drastically reduce your payments.
If you choose to go that route, though, it’s important to remember that once the draw period is over, your payment will increase substantially because you’ll have to start paying off both the principal and the interest on the loan.
Bank of America — APR varies depending on the location
Bank of America is a large institution with branches all across the nation, which is one of the things it has going for it. If you are a person who prefers hands-on help with the application process, the size of this lender could be of benefit to you. Bank of America’s size also allows them to offer discounts that aren’t offered by the competition.
With BofA, you have the chance to lower the interest rate on your HELOC by doing things like signing up for automatic payments. BofA also offers an option to switch to a fixed-rate model, if you decide at some point that you’d prefer more predictable monthly payments.
Chase Bank — Starting at % APR
Chase Bank is another mega-institution, which is probably why their home equity line of credit (HELOC) option is very comparable to the one offered by Bank of America. Chase offers interest rate discounts in return for doing simple tasks, like making the payment for your Chase HELOC from a Chase checking account.
Chase also offers their borrowers the ability to switch to a fixed-rate HELOC, and as an added bonus, you can borrow larger sums of money from Chase than you can from most other banks, so if your project has a hefty price tag, Chase may be the way to go.
PNC Bank — APR varies depending on the location
PNC Bank’s approach to HELOC lending isn’t very transparent, but they are one of the lenders with the lowest HELOC-related fees, which is a positive. In fact, the company is very open on its website about all of the fees that it charges for its HELOC product, which are minimal compared to other lenders.
The downside, though, is that PNC doesn’t openly disclose their minimum credit requirements, which means that you will have to apply in order to find out if you qualify. PNC doesn’t make clear what the maximum amount of credit they’ll issue is, either, stating only that homeowners will be able to borrow up to % of the loan-to-value (LTV) on their home.
SunTrust — Starting at % APR
Compared to other banks, SunTrust offers a relatively low introductory interest rate for the first twelve months of your draw period. However, even after the introductory rate period is over, the company’s available APR range tends to skew lower than average. In addition, the maximum available line of credit it offers is higher than average at $, Finally, SunTrust is a good choice for a HELOC because as long as you keep the account open for at least three years, you won’t have to worry about paying closing costs on the loan.
U.S. Bank — Starting at % APR
U.S. Bank has the largest potential for borrowing against your HELOC at a maximum of $,, but it’s important to remember that you may not qualify to borrow that much. You’ll be limited by the value of your home, how much equity you’ve amassed thus far and your creditworthiness. That said, if you have a large project to undertake, it’s nice to know that you have flexibility with U.S. Bank HELOC.
U.S. Bank is also one of the few lending institutions on the list to offer an interest-only HELOC, which can help you keep your payments low for the entire length of the draw period.
What is a HELOC?
A HELOC is a line of credit that allows you to borrow against the equity in your home, which is basically the percentage of your home that you own outright. To calculate equity, you subtract the amount you still owe on your mortgage from the total value of your home. For example, if your home is worth $, and you still owe $, on your mortgage, your equity is $, Most banks allow you to take out a line of credit in an amount that’s equal to a portion of your equity — often 80% to 85% or so.
The typical HELOC is split into two distinct periods: the draw period and the repayment period. During the draw period, you can borrow from the HELOC via multiple transactions, much like you would with a credit card. During the repayment period, you are responsible for repaying the balance of what you spent during the draw period, with interest.
HELOCs vs. Other Types of Loans
HELOCs vs Home Equity Loans
What is a HELOC vs a home equity loan? Well, a HELOC differs from home equity loans in the way the money is disbursed and the way repayment functions. A home equity loan functions similarly to a personal loan or a second mortgage. You receive the money in a lump sum and make fixed payments that are predictable each month.
HELOCs, on the other hand, function more like a credit card because you can borrow money when and if needed. You only make payments on money you borrow, and with most HELOCs, interest only accrues on money you borrow.
HELOCs vs Personal Loans
Unlike HELOCs, personal loans are paid out one time in a lump sum. Personal loans and construction loans tend to come with higher interest rates than HELOCs because they are unsecured loans, meaning that the bank has nothing to take possession of if you choose to stop making payments and default on the loan.
HELOCs, on the other hand, are secured by your home, allowing home equity line of credit rates to be far more competitive. That low interest rate has a trade-off, though. Yes, you’ll likely receive a lower interest rate on a HELOC, but if you stop making payments, the lender can come after your home.
The Impact of .1% Change on $1,
The interest rates on HELOCs are often variable, which means that you’ll want to do your research on how much the rate can increase and how large your payment will be if it reaches that maximum. While a % change in APR may not seem like a big deal, it can raise your monthly payment substantially. Don’t be lured in by one of the best HELOC rates only to learn that it fluctuates dramatically.
For example, let’s assume that you borrowed $1, and are paying the money back over a year period. A % change from a % APR would raise it to %, and it would increase your monthly payment from $ to $ While this slight payment increase may not seem that impactful, it can vastly affect your payments, especially over the long term. Let’s take a look.
At %, you’d be paying $49 in interest on a loan of $1, after one year. After three years, you’d have paid $ in interest, and in five years time, you would have paid $ in interest.
Now let’s switch that up to add in the .1% interest, taking us to 5%. After one year, you’d have shelled out $50 in interest on your $1, loan. After three years, that number would be $ on your loan, and after 5 years, you’d have paid $ in interest on your $1, loan.
Add in enough of those .1 increases and you’re going to be looking at quite a bit more in interest, which is precisely why it’s wise to shop around for the best rate on any loan, HELOCs included. With rates that range from as low as % to as high as % APR, you can’t afford not to.
The final word
A HELOC can be a great way to fund everything from higher education to a new kitchen, but it’s not right for every situation. Shop around for the best rates, especially if you have a lot of equity built into your home. Be wary of variable rates with complicated terms or lenders who advertise prime rates that only apply to people with perfect credit.
Personal Finance Contributor
Lara Vukelich is a freelance writer in San Diego, California. She writes creative content and SEO-driven copy that can be found everywhere from Huffington Post and Quiet Revolution to Expedia, Travelocity, MyMove, and more. She has a Masters degree in Mass Communication and Media Studies.
Home Equity Loans
*All loans subject to credit and property approval. The introductory rate will be in effect for the first six (6) months after account is opened. Upon expiration of the introductory rate, all balances will accrue interest at the variable standard Annual Percentage Rate (APR) that can range from Prime + % (currently % APR) to Prime + % (currently % APR), using the JP Morgan Chase Prime (JPMCP) rate, not to exceed 18% at any time. Information accurate as of 04/01/ After the promotional period, the variable standard APR will be based on the borrower’s line amount, combined loan-to-value ratio, and credit rating. Hazard insurance required and flood insurance, if applicable. An annual fee of $50 is charged on the first year anniversary after closing and each year thereafter. A prepayment penalty of 2% of the original credit line amount, not to exceed $1,, will be assessed if the credit line is closed within three (3) years of the origination date. The borrower may pay the credit line down to zero without closing the line of credit or without incurring a prepayment penalty. Consult a tax advisor about possible tax benefits. Minimum line of $10, required. Exclusions, limitations and funding requirements apply. Additional Limitations and conditions apply for existing HELOC clients. Refer to product disclosure or ask a banker for complete details. Offer available for limited time.
^Overdraft protection subject to transaction fees.
We have the Best Home Equity Line of Credit Rates in the Market
Chase does not offer traditional home equity loans, which makes them somewhat difficult to compare to other lenders. However, their lines of credit are some of the most flexible in the industry. You can negotiate draw periods, repayment periods, periods of fixed interest, and many other aspects of your loan. The loan officers we worked with at Chase Bank were helpful and able to explain how each modification to their standard line of credit products would impact the structure of the product. This is impressive given how complicated these products can be, and it shows why Chase is the largest home equity line of credit provider in the country.
Customers have reported generally positive experiences when dealing with Chase. This is in part because their website has a number of tools that provide you the basic information up front to determine if you should continue to the application process, and help you get a handle on what products you might be interested in. Their LTV calculator was incredibly easy to use, and they have a large number of physical branches that you can walk into in order to get help with your account. Moreover, they have a number of handy checklists available on their website so you’ll know what information you need before you start the application process, which can be a huge time saver.
Understanding HELOC Costs
If you are considering a home equity line of credit (HELOC) to help pay for home repairs, consolidate debt or achieve other financial goals, it's important to view the full picture of HELOC costs.
For instance, many people ask, “does a home equity line of credit have closing costs?" and are surprised to hear the answer. Just like taking out a mortgage to buy a new home, there can be certain costs involved with obtaining a home equity loan or a home equity line of credit. Some of these costs might seem a bit mysterious. But if you dig in to the fine print and compare lenders, you can get a better idea of how much a HELOC or home equity loan really costs.
As you evaluate your options for which home equity lending option is right for you, make sure you are aware of any HELOC closing costs as well as other fees that are assessed to you as part of your loan. Not all lenders charge the same fees or require the same home equity line of credit closing costs. Costs and fees also often depend on which type of home equity product you choose. For instance, while Discover® does not offer HELOCs, Discover Home Loans® offers home equity loans that waive closing costs and origination fees, allowing you to receive approved loans without any cash at closing.
There are a few different types of HELOC costs related to setting up your home equity line of credit:
HELOC closing costs
Many people think that closing costs are only for primary mortgages that are typically used to purchase a home. But in reality, most HELOCs require closing costs as well.
Closing costs for a HELOC are often a bit lower than the costs of closing a primary mortgage, but the average closing costs for a home equity loan or line of credit (depending on the lender and the loan product) can add up to between 2 percent and 5 percent of your total loan cost.
Home equity line of credit closing costs often include such charges as origination fees, underwriting fees, loan recording fees and other administrative expenses. Setting up a HELOC or other loan product can be a complex process for the lender, and closing costs help pay for the services of the various experts who:
- Evaluate the borrower's creditworthiness
- Make sure there is enough available home equity to borrow against
- Assess the other relevant information about the loan application to approve (or deny, or modify) the requested loan amount and finalize an acceptable agreement with the borrower.
The costs of closing your HELOC (depending on the lender) might include specific fees such as:
- Application/origination fee: Some lenders charge a fee to cover the costs of opening your application and bringing you into the system as a customer.
- Notary fee: Lenders in some states charge a special fee to get your loan paperwork verified and notarized by a notary public.
- Title search: This fee is to help the lender confirm that you have rightful ownership of the property title and make sure there are no issues with the title, such as unpaid taxes, assessments or easements.
- Appraisal fee: This fee pays a real estate expert to assess the current market value of your home. This assessed value is then used to calculate how much you can borrow from your equity with your HELOC.
- Credit report fee: Lenders need to run a credit check as part of crunching the numbers before they can approve your application or issue a loan, and some may charge a fee for this “service.” Discover Home Loans typically requires a credit score of at least for its home equity loans, though there is no credit report fee from Discover.
- Attorney/document prep fees: Before a home equity loan or HELOC is final, it needs to be reviewed by an attorney or financial document preparation ("doc prep") specialist. These professional service fees are often included in closing costs.
- Recording fee: This is a small payment (usually $15 to $50) made to the local taxing authority where your home is located, such as the county recorder or other local official, to record the new lien against your home.
As you evaluate your options, keep in mind that not all lenders charge the same closing costs. Some lenders will waive certain fees as part of a special offer. Other lenders will include the closing costs into the total balance of your loan, so you don't have to pay cash out of pocket.