Every once in a while, I see something "new" that I haven't seen before. Earlier this month, Chase announced that they now have a "1% Mortgage Cash Back" program. According to the offer, highlights and details include:
"With any new Chase mortgage or refinance, choose either 1% cash back or a 1% payment against your principal balance annually when you sign up for automatic payments on a new Chase Mortgage. Getting started is easy.
Open a new Chase mortgage.
1% Mortgage Cash Back works with any new Chase mortgage or refinance.
Enroll in 1% Mortgage Cash Back and choose how you want to receive your reward:
Deposited into your Chase or WaMu checking account OR applied as a payment against your mortgage principal
Set up Automatic Mortgage Payments from your Chase or WaMu checking account.
At your loan closing, complete your enrollment in our automatic mortgage payment service with your Chase or WaMu personal checking account. With this convenient, FREE service, your monthly mortgage payment is automatically deducted from your checking account. You'll never miss a payment, never worry about looking for a stamp.
Watch your cash back grow!
Keep an eye on your savings with each statement. And on each loan anniversary you'll receive your reward – as a direct deposit into your checking account or applied against your mortgage principal."
“We talked to many customers and prospects, and they really liked the idea of having their bank help them pay down their mortgage,” said David Lowman, Chief Executive Officer of Chase Home Lending, in a press release. “They also liked the option of getting the reward in cash.”
Is This A Good Deal?
Kind of, but you might be surprised to learn that many other banks are offering things such as an interest rate discount when you get your loan if you agree to use automatic withdrawls on your mortgage and a discounted interest rate may end up saving you far more than 1% cash back on your mortgage. So be careful to do the math when considering whether or not this program is for you -- because it may or may not be the best thing for you.
But I have to hand it to the marketing people at Chase -- they are a creative bunch.
Justin McHood is a loan officer living in the Phoenix, Arizona area. You can find Justin on Facebook, Twitter, ActiveRain or LinkedIn and he is happy to answer any mortgage-related questions that you may have.