Chase HELOC review
finder.com’s rating: 3.8 / 5.0
Eligible customers can drive down their interest rate by 0.62%.Chase can open lines of credit between $25,000 to $500,000. Backed by the resources of a big bank, it allows five rate locks per HELOC and reduces the interest rate for customers who meet a tidy list of requirements. But HELOCs aren’t available in Alaska, Hawaii or South Carolina.
What makes Chase unique?Chase is an attractive choice for HELOCs for these reasons:
Interest rate discounts
Existing customers stand to save the most by opening a HELOC with Chase.
If you have an eligible Chase checking, savings or investment account, you may earn a rate discount of 0.25%. If you set up automatic payments from your checking account, you could slash another 0.12% off your interest rate.
And if you withdraw $30,000 from your home equity line at closing, or provide contracts or bids for a $30,000 home improvement project, you might score another 0.25% discount. (Remember, the minimum credit line is $25,000, or $10,000 in Michigan.) This discount isn’t available to customers with more than three years left in their draw period.
In total, some customers can slash their variable interest rate significantly by 0.62%.
During the draw period, Chase allows you to convert all or a portion of your line of credit from a variable rate to a fixed rate. You can have up to five separate locks on a single HELOC account.
Here’s the fine print:
- There’s no fee to switch to a fixed rate, but if you cancel the lock after 45 days, you’ll have to cough up a fee of 1% of the original loan amount.
- The minimum lock amount is $1,000, and the maximum is up to 95% of the credit limit at closing — or 100% after closing.
- The minimum term is 12 months, and the maximum term depends on the length of time you have left on your HELOC.
Do I qualify for a HELOC with Chase?
To open a HELOC with Chase, you need to meet these requirements:
- A minimum credit score of 680
- A credit history with at least three tradelines (such as credit cards, mortgages and car loans) from the past 24 months
- A loan-to-value ratio that’s less than 80%
- A debt-to-income ratio of 43% or less, or 50% if you have a co-applicant
Chase reviews and complaints
As of September 2021, Chase Bank has a 3.8 out 5 rating from 25,700 reviewers on WalletHub and Chase Mortgage has a 3.3 out 5 rating from 53 reviewers. While some customers had a good experience getting a home loan product from the bank, many others have complained of serious delays, a lack of communication and lost “good faith” deposits.
The bank isn’t accredited with the Better Business Bureau (BBB) and has an A+ business rating. For the mortgage division, the BBB has recorded 236 complaints in the last three years and has a 1.05 out of 5 rating from 19 customers.
Chase is one of the Big Four banks in the US, and it appears to struggle with serving that customer base in a personalized and attentive manner, based on the many negative reviews and complaints it’s garnered.
What are the benefits of taking out a HELOC with Chase?
With over 5,000 branches across the country, Chase is one of the biggest home equity lenders in the US. If you open a HELOC with this bank, you’ll also unlock these benefits:
- Transparency. Unlike many of its competitors, Chase is upfront about everything from fees to eligibility requirements.
- Rate discounts for Chase customers. Eligible customers can shave up to 0.62% off the standard variable rate.
- Ability to switch to a fixed-rate. If you’d prefer steady monthly payments, you can convert all or a portion of your line of credit to a fixed rate.
- Sophisticated application. The online application is seamless and easy to navigate, and the site has handy tools such as an eligibility checklist, home value estimator and rate calculator.
- Large loan range. The bank offers HELOCs ranging from $25,000 — or $10,000 in MI — to $500,000.
- HELOCs on secondary residences. Chase is open to accepting secondary residences as collateral for some customers. Speak to a rep to learn more.
What to watch out for
These drawbacks may affect your decision:
- Not available in all states. Residents in AK, HI and SC will have to look elsewhere.
- High maximum APR. Chase says your APR won’t exceed 21% over the life of the loan. To compare, Wells Fargo keeps lifetime interest rates under 7%.
- Some fees. Many banks waive the closing costs and application fees, but Chase charges a $50 origination fee and $50 annual fee. Exceptions apply.
Compare HELOC lenders
Compare these lenders and lender marketplaces by the type of home equity product you’re searching for, state availability and minimum credit score. Select See rates to provide the company with basic property and financial details for personalized rates.
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Compare Chase HELOC to other lenders
How do I get started?
The quickest way to apply is online. These are the steps:
- Go to the Chase website.
- On the left hand toolbar, select Home Equity.
- Choose Apply Now.
- Fill out the form with details about the property as well as your employment, income, financial situation and how much you’re hoping to borrow.
- Submit your application. A HELOC specialist will contact you within two business days to walk you through the next steps.
To apply over the phone, call 888-342-4273 weekdays from 8 a.m. to 10 p.m., Saturday from 9 a.m. to 7 p.m., and Sunday from 10 a.m. to 4 p.m.
The bank requests the following information:
- Property address, type, location and purchase price
- Estimated value of the property
- Employment and income information
- Details about your debts and financial obligations, such as outstanding student loans or credit cards
- Social Security number
- Proof of hazard, homeowners or flood insurance, if applicable
I got the HELOC. Now what?
Keep tabs on your line of credit with these tips:
Access your credit. To tap into your funds:
- Go online. Transfer money from your HELOC to your Chase checking account or an outside bank account.
- Visit a Chase branch. To locate one, use the search function on the site.
- Call 800-836-5656. The team will deposit cash into your Chase checking account.
- Write a line of credit check. If your account has check access, you’ll be able to use those checks to draw money from the account.
Switch to a fixed-rate. Set up predictable monthly payments with Chase‘s Fixed-Rate Lock Option. It allows you to lock in an interest rate on all or a portion of your outstanding balance during the draw period.
Contact customer service. When you have questions, reach out to the HELOC team.
- Phone. Dial 800-836-5656 weekdays from 8 a.m. to midnight, and Saturday from 8 a.m. to 8 p.m. ET.
- Email. Log into your online account and go to Customer Center > Send a New Message.
- Social media. Tweet @ChaseSupport — be sure to leave out any personal or financial information.
- Mail. Address snail mail to:
- Chase, Attn: Home Equity Servicing, 3415 Vision Drive, Columbus, OH 43219.
Adjust your limit. Refinance to increase your line of credit. Speak to your HELOC consultant to explain your situation and find out if you’re eligible.
Make timely payments. Choose between one-time or automatic payments. These are your payment options:
- Bank transfers. Move funds via ACH transfers.
- Phone. Call 833-729-2427 at any time.
- In person. Head to a local branch to make a payment.
- Checks and money orders. Send a check or money order to the address above five to seven days before your due date.
If you like, you can make additional principal payments to pay off your HELOC earlier.
Frequently asked questions
How much can I borrow?
The minimum line amount is $25,000 — or $10,000 in MI — and the maximum is $500,000. Your limit will depend on your credit history and how much equity you have in your home.
What if I have a coapplicant?
Apply for a HELOC with another person, such as a spouse or relative. Chase will ask for details about the coapplicant’s income and credit history, and this will determine whether or not the application is approved.
How long does it take to open a HELOC?
Once you’ve submitted your application and any supporting documents, Chase says the process takes approximately 45 days. At that point, there’s a three-day “Right of Rescission” period after which you can access the funds.
Do I have to live in the home I want to use as collateral?
If you can prove that you live in the residence for most of the year, you should be able to use it as collateral for a HELOC.
These are the eligible property types:
- Single-family residences, like houses and townhouses
- Attached single-family residences, like condos
- Two-unit residences
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Katia Iervasi is a staff writer who hails from Australia and now calls New York home. Her writing and analysis has been featured on sites like Forbes, Best Company and Financial Advisor around the world. Armed with a BA in Communication and a journalistic eye for detail, she navigates insurance and finance topics for Finder, so you can splash your cash smartly (and be a pro when the subject pops up at dinner parties).