Note: Due to the impacts of COVID-19, Chase has temporarily suspended applications for new HELOCs. The information presented below reflects Chase’s previous offerings and current alternatives.
Chase is a national bank that offers an array of banking and other financial services. The lender is headquartered in New York City but offers home equity lines of credit, or HELOCs, in 47 states and the District of Columbia.
Due to the impacts of COVID-19, Chase is only offering cash-out refinancing through its mortgage options for home equity. You can prequalify for a cash out refinance online, but you may have to visit a Chase branch to complete the process.
Chase alternatives to HELOCs during COVID-19
Because Chase is not currently offering HELOCs, here are some other options you may consider if you want to use Chase.
Borrowers looking to tap into their home equity can use Chase’s cash-out refinance product for similar expenses. You can use a cash-out refinance to fund home improvement and repairs, consolidate high interest debt and cover large purchases such as college tuition.
Another benefit of cash-out refinancing is the ability to choose a loan with repayment terms that work best for you. If you want lower monthly payments, you can choose a loan with a longer repayment period, and if you want to reduce the total amount you pay for your home, you can refinance with a shorter loan term to cut down on interest.
In order to receive cash-out refinancing, you will need to take out a loan for more than you owe on your principal mortgage balance.
Other home equity options
While cash-out refinancing is a good alternative if you are looking to access your home’s equity and want to work specifically with Chase, home equity loans and lines of credit are typically better options. Because Chase is not currently offering these products, you may consider looking into lenders that do and checking the best home equity line of credit rates and best home equity loan rates.
Note: The rest of the article reflects the terms of Chase’s HELOC product, which is currently unavailable.
|Loan types offered||HELOC|
|APR range||5.50% to 8.14%|
|Loan amount range||$25,000 to $500,000|
|Minimum credit score required||680|
|Repayment terms||10-year draw period and 20-year repayment period|
|Average time to approval||Not specified|
Chase’s home equity products come with a number of benefits, including:
- Competitive interest rates: The HELOC has a variable interest rate ranging from 5.50 percent to 8.14 percent APR, and you can convert some or all of your balance to a fixed-rate loan. According to Bankrate, the average HELOC rate is 5.41 percent, as of early May 2020.
- Low fees: For most people, the only fees to worry about are a $50 origination fee and a $50 annual fee. There are no other application fees or closing costs in most cases.
- Interest rate discounts: If you’re an existing Chase customer, you can qualify for up to 0.62 percent in interest rate discounts, which can save you a lot of money over the life of the loan.
Before signing up with Chase, consider some of its drawbacks:
- High credit score minimum: Chase has a minimum credit score of 680, which is a bit high compared with some other home equity lenders. If you have fair credit, you may need to look elsewhere.
- High minimum loan amount: In most states, the lowest amount you can borrow is $25,000. If you need less than that, Chase’s HELOC isn’t right for you.
- No interest-only payments: Your monthly payment during the draw period will include both principal and interest — with HELOCs from other lenders, you may only have to pay interest during that term.
- No home equity loan: The lender only offers HELOCs. If you prefer a home equity loan with a fixed rate and equal installment payments, you’ll need to apply somewhere else.
Types of fees charged
Chase charges a $50 origination fee and a $50 annual fee. There are no other closing costs unless you live in certain states, where you might be on the hook for government taxes or fees.
You also don’t have to pay a fee to convert your variable-rate HELOC to a fixed interest rate. However, there is a 1 percent fee if you cancel the lock more than 45 days after the lock date.
The bank allows you to get an interest rate discount of up to 0.62 percent on your line of credit, which includes:
- 0.25 percent if you have a qualified Chase checking, savings or investment account.
- 0.25 percent when you provide contracts or bids for an upcoming $30,000 home improvement project, or you withdraw $30,000 at closing.
- 0.12 percent when you make automatic payments from your Chase checking account.
Loan products offered
Chase offers mortgage loans to new homebuyers, as well as mortgage refinance loans and HELOCs to people who already own a home.
With Chase’s HELOCs, you can borrow between $25,000 and $500,000 unless you live in Michigan, where the minimum is $10,000. The amount you can borrow also depends on how much you currently owe on your home relative to its value. Chase has a loan-to-value ratio limit of 80 percent, though that can vary based on your relationship with the bank.
The HELOC has a 10-year draw period and a 20-year repayment term after that.
Chase also allows you to convert some or all of your balance to a fixed-rate loan if you want to avoid interest rate fluctuations. Repayment terms on the fixed-rate option range from 12 months to the remaining term of the HELOC.
How to qualify for a home equity loan with Chase
Chase has a minimum credit score of 680. You also can’t have certain negative items on your credit report, including a recent bankruptcy, foreclosure, repossession, mortgage delinquency and more.
The maximum debt-to-income ratio (DTI) to qualify is 50 percent, though you may need to meet additional requirements if your DTI is above 43 percent.
If you don’t qualify for a HELOC on your own, you may improve your approval odds by applying with a creditworthy co-applicant.
Eligible properties include single-family residences, attached single-family residences (including condominiums), cooperative shares and two-unit residences.
How to get started
Once HELOC applications are back open, you can apply for a HELOC online, via phone at 888-342-4273 or by visiting a local Chase branch. If you apply online, you’ll share information about yourself, your property and your desired loan amount and purpose.
After you apply, Chase will request that you upload certain documents to prove your income, such as your pay stubs, W2s, tax returns, investment income and other income sources.
After you submit your application and submit your supporting documents, it typically takes 45 days to close. After you close on the loan, you’ll get access to your initial draw funds on the fourth business day after closing.
A Chase HELOC may be a good fit if you’re an existing Chase customer and can benefit from the bank’s discounts. Before you apply, though, be sure to shop around and compare what Chase has to offer with what you can qualify for with other home equity lenders.
If you ultimately decide on Chase, apply online through the bank’s website or one of the other methods it offers. If you have any questions during the online application process, you can call 1-800-935-9935. Home lending representatives are currently available Monday through Friday from 9 a.m. to 6 p.m. ET.
How Bankrate rates Chase
Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.