Taking Advantage Of Low Interest Rates With Chase Refinance

By Sean A. Kelly

With the current drop in property value, interest rates for mortgage loans also took a dive. My friend, Jasper, knew that this would be the perfect opportunity to refinance his home that he bought a few years ago. When he bought his home, Jasper signed up for a 5/1 adjustable rate home loan with Chase bank. Basically the rate would be fixed for the first five years after which the annual percentage rate would change every year. Jasper was still enjoying a low interest rate when he decided to refinance because the adjustment period was almost due and the current interest rate at the time was even lower than the rate he signed up for almost five years ago. So Jasper decided to take advantage of the situation and contacted a Chase refinance officer to present his case.

Jasper’s objective was to reduce his monthly expenses so he could have more ‘left over’ money at the end of the month. With the current interest rate at its lowest point, Jasper knew that refinancing his home with Chase refinance would help him save more money and improve his cash flow. So Jasper went to see the refinance officer at a local branch of Chase bank. Of course, he did not go there unprepared. He had already done his own research. The market rate for mortgage interest might have been at its lowest but if he did not have good credit rating he probably would not be able to enjoy such low rate. So he obtained his credit report from all of the big credit reporting bureaus to show the refinance officer that he had stable financial and credit situation.

However, Jasper was also aware that his credit rating was not in the Tier One category. If anything his credit score was simply decent at best. So he discussed with the officer on other factors that they may consider to determine his creditworthiness prior to approving his application to refinance Chase mortgage on his home. The advantage that he had was that he was already a client of Chase bank and he was never late in making his monthly payments so the bank would definitely take that into consideration. Jasper also did not hesitate to mention what other banks were offering him. Basically he was giving himself leverage and effortlessly convinced the officer why he deserved the best interest rate. After all, no bank would want to be outdone by other banks.

Once he was offered the lowest interest rate he could possible get, he requested that the officer provide him with a Good Faith Estimate. Then it was time to negotiate the fees. He pointed out to the officer that he was not going to refinance mortgages at some other bank so he asked to be exempted from having to pay several fees. Jasper was aware that high processing fees and closing costs would defeat the purpose of having a very low interest rate. So after much negotiations and even arguments, he was successful in obtaining what he went there to get in the first place; a mortgage refinance with low interest rate and cost. Jasper then filed his application along with all the relevant documents requested by Chase bank. He converted his 5/1 adjustable rate mortgage to a fixed rate mortgage with considerably low interest and cost.

Basically Jasper managed to take advantage of the low interest rate as he can now afford to save more money because he is paying less than what he started with. At the same time, he also managed to lower his debt-to-income ratio which would work to his advantage for future financial activities.

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