bank rates

Chase’s “Cash Back” Mortgage An Iffy Deal

JP Morgan Chase is pushing a new gimmick to sell mortgages.

JP Morgan Chase is pushing a new gimmick to sell mortgages.

Take out a new loan — purchase or refinance — and get back 1% of each year’s total mortgage payments.

But how much will you have to pay for a Chase loan?

When we used the “custom quote” feature on the bank’s Web site, we could find some fairly competitive rates on 30-year, fixed-rate loans.

Unfortunately, every quote also came with points — that’s prepaid interest due at closing, with one point equaling 1% of the loan amount.

After running the numbers we found a mortgage offering the same rate without points was a better deal than Chase’s “cash back” mortgage with points.

CLICK HERE TO READ THE ENTIRE POST.

Don't miss out on the next bank deal. Get the newest deals delivered straight to your inbox!

Comments (1)
1 Star2 Stars3 Stars4 Stars5 Stars (5 votes, average: 4.80 out of 5)
Loading...
One Existing Comment
  1. DonJuan said:
    on April 11th at 09:54 am

    Should that really surprise anyone? There is no such thing as a free lunch, and any of these cash-back gimmicks are just that! Gimmicks!