May 10th, 2010 9:51 AM

Via Tim Bradford (American Midwest Mortgage):

If you saw the Commerical and are interest in Details about the Program, you can find the information here https://www.chase.com/chf/mortgage/mcb-details 

My opinion the offer is a great marketing effort by them however in reality the savings may not be as beneficial as the commercial might make some consumers believe.  

First, The 1% sounds like alot.   The reality is it is 1% of your Monthly Principle and Interest Payment.  Using their calculator I changed the loan amount to $100,000 and the rate of interest to 5.00%.  The "Annual Cash Back Savings" was quoted at $64.00.  The payment on this loan would be $536.82, so you would receive $5.36 per month.  (12 months time 5.36 amounts to $64.00 Per Year)  Additionally as stated on the Chase website the 5.36 ($64.00 Annually) "The 1% Mortgage Cash Back may result in taxable income to you, the borrower. We encourage you to consult with your personal tax advisor."

Second, In order to qualify fot the 1% Cash Back you much have a checking account (or open one) and sign up for the automatic withdraw from your Chase Checking Account. 

Finally, this is not a Criticism of Chase's ad or their program as I believe it is an excellent advertisement and a great way to encourage borrower to give them a call.  The purpose of this post is to encourage borrowers to SHOP, COMPARE and SAVE when shopping for a mortgage.  You may find a better rate or lower closing costs with a little shopping. 

 

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