Chase Mortgage Review 2022
Chase is the largest bank in the U.S., serving millions of customers. Because Chase is so prevalent, individuals with Chase bank accounts or credit cards may consider the lender when they’re shopping for a mortgage.
Chase is the third-largest mortgage originator based on dollar volume, and it offers conventional, government-backed, and jumbo mortgages. It also operates its own mortgage program for low- to moderate-income households—the Chase DreaMaker loan—allowing them to qualify for a home loan with as little as 3% down.
Individuals with higher budgets can qualify for a jumbo mortgage. And they may qualify for extra discounts based on their Chase bank and investment account balances, making the lender a good option for existing Chase customers.
Pros Explained
- Relationship discounts for existing customers: Borrowers with Chase bank accounts or JPMorgan investment accounts may be eligible for rate discounts when they take out a mortgage through Chase. Depending on your account balances, you could qualify for an interest rate reduction as high as 0.50%.
- $5,000 closing guarantee: If you’re a Chase customer buying a home, Chase promises you’ll close on time in as little as three weeks, or the lender will give you $5,000.
- $500 for completing homebuyer education courses: If you utilize Chase’s DreaMaker mortgage—a program that allows you to put as little as 3% down—you can receive $500 by completing an approved homebuyer education course.
Cons Explained
- Doesn’t disclose its credit or income requirements online: Chase doesn’t list its minimum income or credit score requirements on its site; you have to submit your information and consent to a credit check to see if you’re eligible for a loan.
- Can’t complete the whole process online: While some lenders allow you to apply for a mortgage entirely online, Chase does not. You can start an application on its site, but you’ll need to work with a home loan advisor either in person or over the phone to finalize the application and loan terms.
- Doesn’t offer USDA mortgages: USDA mortgages are home loans that allow you to finance 100% of the purchase price of a home in a rural area. While they’re popular options for those with limited incomes, Chase doesn’t offer this loan type.
Not ready to make a decision? Shop around, starting with our picks for the best mortgage lenders on the market.
Types of Mortgage Loans Offered by Chase
Chase has five mortgage options, including home loans for moderate-income borrowers, government-backed loans, and jumbo mortgages.
- Conventional mortgages: Chase has both fixed-rate loans and adjustable-rate mortgages (ARMs). Chase fixed-rate loans have terms of 15 or 30 years. If you opt for an ARM, the interest rate is initially lower than it would be with a fixed-rate loan. However, it can change over time. With Chase, you can select a 7/6 ARM, meaning your interest rate is fixed for the first seven years. After that, it can be adjusted every six months.
- DreaMaker: The down payment requirement for a DreaMaker loan is as low as 3%. This mortgage program also has more flexible credit requirements than other loan options, but it does have strict income requirements.
- Jumbo loan: If you’re looking for a higher-value property, Chase’s jumbo loans could be useful options. While other lenders typically cap jumbo mortgages at $5 million or less, Chase allows you to finance homes worth up to $9.5 million.
- Federal Housing Administration (FHA) mortgage: FHA loans are government-backed mortgages that allow you to get a mortgage with a down payment as low as 3.5%.
- U.S. Department of Veterans Affairs (VA) mortgage: VA loans are available to qualifying military veterans. Eligible individuals can buy a home with a 0% down payment.
Chase Features and Benefits
Chase mortgages offer the following benefits:
- Chase Homebuyer Grant: Borrowers applying for a Chase DreaMaker, FHA, or VA mortgage to buy homes in select areas can qualify for a grant of $2,500 or $5,000. At the loan’s closing, the grants will be applied to points and fees.
- Low down payment options: Typically, the lowest down payment possible on a conventional mortgage is 5%, while FHA loans allow as little as 3.5%. However, Chase has some loan options that allow borrowers to place down payments of 0% for VA loans or 3% for DreaMaker loans.
Chase has a searchable list of home buyer assistance programs in each state. You can find programs that offer help with down payments or closing costs.
How to Apply for a Chase Mortgage
To apply for a Chase mortgage, you can fill out an application in person at a local branch or you can complete a digital application. According to Chase, nearly 75% of its mortgage applications in 2021 were submitted online.
To pre-qualify for a mortgage or complete a full application, follow these steps:
- Start early: Chase recommends applying for a mortgage about three months before you want to move into your new property.
- Gather documents: Applying for a mortgage requires a significant amount of paperwork. You’ll need to submit copies of your pay stubs, W-2s, bank and investment account statements, and other documentation. If you’re self-employed, you’ll also need to submit your two most recent tax returns. Chase has a downloadable checklist to help you organize your documents.
- Fill out the pre-qualification form: You can pre-qualify for a home loan online or in person at a local branch. The form asks for basic information about you, your income, and the home you’d like to buy.
- Review estimate: Chase will send you a loan estimate that includes the terms of the loan, including your monthly payment, interest rate, and other fees. It will also connect you with a home loan advisor who can help you understand the loan terms and handle the next steps.
- Move forward: If the loan meets your needs and you find a home you’d like to buy, notify your home loan advisor that you want to move forward with the mortgage application.
Customer Service
Unlike some mortgage companies, Chase doesn’t provide 24/7 customer service. You can contact customer support by phone, secure message, or by visiting a local branch. You can also set up a phone or in-person appointment with a Chase home loan advisor. However, Chase’s advisors are only available in 36 states and the District of Columbia.
You can contact Chase by secure message or by phone at (800) 447-1101. Business hours are:
- Monday through Friday: 8:00 a.m. – 8:00 p.m. EST
- Saturday: 9:00 a.m. – 6:00 p.m. EST
Customer Satisfaction
Chase is a major bank and mortgage lender, but it’s received worse-than-average customer reviews and ratings.
In the J.D. Power 2021 U.S. Primary Mortgage Origination Satisfaction Study, Chase was ranked 13 out of 23 lenders. Its score was lower than the industry average.
On Trustpilot, Chase has a TrustScore of 1.4 out of 5 based on over 900 reviews, which puts it in the “bad” category. While reviews were for both mortgages as well as Chase’s other products, customers frequently complained about long wait times to reach customer support and unhelpful representatives.
Regulatory Actions
Like other major lenders, Chase has faced regulatory actions and class action lawsuits in the past:
- In 2015, the Consumer Financial Protection Bureau (CFPB) took action against Chase and Wells Fargo, alleging the companies were involved in an illegal marketing services kickback scheme.
- JPMorgan Chase agreed to pay $55 million to settle an investigation into whether the lender charged borrowers belonging to minority groups higher interest rates than white customers. The settlement was announced in 2017.
- In 2022, Chase announced that it would pay $11.5 million as part of a settlement in a class action lawsuit that claimed the company mismanaged escrow balances according to laws in six states.
It’s not unusual for companies of Chase’s size and market share to face these sorts of issues. However, Chase’s history highlights the importance of carefully reviewing loan agreements, monitoring your account, and shopping around to compare rates and terms from multiple lenders.
Account Management
When you take out a mortgage through Chase, you can manage your account, download statements, and make payments online. Existing account holders can also use the Chase mobile app to manage their loan.
If you have other Chase accounts, such as savings accounts or credit cards, you can view all of your accounts—including your mortgage—on one platform.
Alternative Choices
Although Chase is a popular mortgage lender, borrowers should always shop around and compare options from other companies. Otherwise, you risk paying a higher interest rate than you could get elsewhere.
If you’re looking for a lender that provides a digital experience, consider Rocket Mortgage. Like Chase, Rocket offers a range of mortgage options, including conventional, FHA, VA, and jumbo loans.
Rocket Mortgage stands out from Chase due to its high customer satisfaction ratings—it’s the second choice in the J.D. Power 2021 Mortgage Origination Satisfaction Study—and quick closing times.
| Chase | Rocket Mortgage | |
|---|---|---|
| Types of Mortgages | Conventional DreaMaker FHA VA Jumbo | Conventional FHA VA Jumbo |
| Average Time to Closing | Does not disclose | 26 days |
| J.D. Power Ranking | 13/23 | 2/23 |
Choosing a Mortgage Lender
When you’re buying a home, choosing the right mortgage lender is a big decision. Before submitting an application with Chase—or any lender—request quotes from multiple home loan companies. When comparing your options, consider the following:
- Annual Percentage Rate (APR): The mortgage’s APR is the rate you’ll pay to cover interest, mortgage points, and other fees.
- Loan Type: You can usually choose either a fixed-rate loan or an adjustable-rate loan. ARMs can be appealing because they have lower initial rates, but the rates can increase over time. By contrast, fixed-rate mortgages never change.
- Repayment Term: Repayment options vary by lender. In general, mortgage loan terms range from 10 to 30 years. A longer repayment term gives you a lower monthly payment, but you’ll get a higher interest rate than if you opted for a shorter loan term.
- Points: When you review your loan terms, look for the points the lender charges. Points can be written as dollars or as point values, so make sure to ask how points will affect your total cost if it isn’t clear.
- Down Payment: When you apply for a loan, lenders typically require you to have a down payment. Usually, the down payment is expressed as a percentage of the home’s value, such as 3% or 5%. There are some mortgage options that allow you to buy a house with 3% or even 0% down. However, you’ll have to pay for private mortgage insurance (PMI) and you’ll likely have a higher interest rate if your down payment is less than 20%.
Before shopping for a mortgage, get an idea of how much house you can comfortably afford. You can use Chase’s affordability calculator to find out what price range fits your budget.
Final Verdict
When it comes to Chase mortgage reviews, customers tend to complain about the company’s customer service and lack of responsiveness. However, the lender offers a range of options, including those with low down payment requirements. And those who already have bank or investment accounts with the lender may be eligible for interest rate discounts that can offset Chase’s downsides.
Otherwise, you may want to consider another lender that is more highly rated; see our choices for the best mortgage lenders to continue your search.
Methodology: How We Review the Best Mortgage Lenders
Investopedia is dedicated to providing consumers with unbiased, comprehensive reviews of mortgage lenders. We rated 45 mortgage lenders and collected nearly 1,500 data points, including information about the following:
- Quality of service (customer experience, online applications, benefits/grants, etc.)
- Operational features (state licensing coverage, number of loan officers, etc.)
- Loan types offered (fixed-rate, FHA, USDA, etc.)
- Accessibility (days to closing, minimum debt-to-income ratio, etc.)
We also conducted a survey of 1,195 mortgage borrowers to learn about the most important features from a customer perspective and how satisfied customers are with various lenders. Mortgage lenders were rated objectively in the categories above to help readers make informed decisions about home loans.
Read more in our full mortgage lender review methodology.
