Those looking to refinance may get a surprise if they bank with Chase.
For example, today’s refinance rates for a 30-year fixed are set at 5.00%, while a 15-year fixed is going for 4.375%.
The 7/1 adjustable-rate mortgage is pricing at 3.000%, while the 5/1 ARM is coming in at 2.625%.
These compare to rates of 4.375% for a 30-year, 3.375% for a 15-year, and 2.625% for a 5-year ARM seen over at top mortgage lender Wells Fargo.
That’s right, the 15-year fixed is somehow pricing an entire percentage point higher at Chase, while the 30-year is more than a half point higher. Hmm…
A similar situation unfolded at Wells Fargo back in 2009 when the company said it couldn’t lower mortgage rates as much as it would like due to a high decline rate and lack of available staff.
Interestingly, Chase’s purchase-money mortgage rates are a completely different story.
You can get a 30-year purchase mortgage for 4.375%, a 15-year for 3.50%, or a 5/1 ARM for 2.25%.
Their ARM rates are actually beating Wells Fargo’s handily, but only if you’re looking for a purchase.
And as we all know, nobody is looking to purchase a home in this market, despite those rock-bottom rates.
In fact, the Mortgage Bankers Association reported today that purchase demand hit its lowest point since 1996.
Yep, housing demand is at its lowest point in 15 years, at the exact same time rates are at historic lows. Makes you wonder if buying a home is a good move at the moment, right?
The moral of the story here is to shop around for your mortgage. If you want the best mortgage rate, don’t just get a single quote from the bank you do business with.
Otherwise you could wind up with an astronomically high mortgage rate, simply because you didn’t know any better.
Read more: What mortgage rate can I expect?