Answers
What is a home equity loan?
A home equity loan is a form of credit for which your home is pledged as collateral. Generally, home equity loans offer a fixed interest rate and a fixed monthly payment. A standard home equity loan (also called a second mortgage) is paid off over an extended period of time. If you want added flexibility, Chase also offers the Chase Adjustable Rate- Home Equity Loan.
You can estimate your home equity by adding the balance of all the debts secured by your home, then subtracting the total from your home's value.
What are the primary advantages of a home equity loan?
The two major advantages of borrowing with a home equity loan are lower interest rates and potential tax savings:
 The interest rate you will pay on the average home equity loan is generally lower than the interest rate you will pay on the average credit card or any other type of non-secured debt.
For home equity loans, you can generally deduct the interest you pay. The interest you pay on credit cards and other types of personal loans is generally not tax-deductible.
Access the tax savings calculator 
How can I use my home equity loan?
You can use a home equity loan for almost anything. Common uses include debt consolidation (paying off high-interest credit card debt), home improvements, purchasing or refinancing a home, purchasing land, paying for education expenses, college tuition and buying luxury items.
Can I pay off balances from other accounts?
Yes. You may use the proceeds of your new home equity loan or line of credit to pay off balances from other accounts, or we can process those payoffs on your behalf.
What is a debt consolidation loan?
A debt consolidation loan is a type of home equity loan that allows you to combine several debts into one loan. By making one lower monthly payment, you can more effectively manage your debt. The key to successfully reducing your debt is to discipline yourself from new spending. If you're consolidating credit card bills, don't use the credit cards after you get a debt consolidation loan, even if you've cleared your balances. You could be tempted to overspend, which would eliminate the benefits of consolidating your debt.
Access the consolidation calculator
Do I have to live in the residence I'm using as collateral?
No. Chase offers loans on primary residences as well as second homes.
How much can I borrow?
Depending on loan type, property type and other criteria, you may be able to borrow up to $500,000. The relationship between your loan amount and your home's value is called the "loan-to-value" ratio, or LTV. As LTVs increase, the cost of the loan in question usually increases as well.
How do I know if I qualify?
You must complete an application for us to determine if you qualify. It takes only 10 minutes to apply online and you’ll get a response in about 90 seconds.
APPLY TODAY
Once you have applied, we will evaluate several criteria, which may include:
Credit history
Employment and income
Amount of the loan or line requested
A review of the assessed value of the property and the amount of any existing mortgage debt on that property
Can I be self-employed and qualify for a home equity loan?
Yes. Self-employed applicants can qualify provided they meet the
approval criteria. Depending on your request, income documentation may be required.
Is there another way to borrow against my home's equity?
Yes. Cash-out refinancing is not a home equity loan but it does let you borrow against your home's equity. In cash-out refinancing, you refinance the existing debts secured by your home (i.e. your mortgage) with a new loan, but in addition, you also borrow new funds over and above the total of those existing debts. The difference between your new loan and the total of the old debts is a loan against your home's equity.
Can I refinance my existing loan account and pocket some additional cash?
Yes. A home equity loan or line of credit is a good way to refinance your existing mortgage loan, take some additional cash and make one easy monthly payment. Chase does not set aside "escrows" for property taxes or property insurance. If your current mortgage loan has an escrow feature and you refinance it with a home equity loan or line of credit, you will become responsible for the property taxes and insurance premiums.
How can I compare different loans and lines?
The APR or annual percentage rate, is an important factor to consider when shopping for a home equity loan because in most cases, it takes into account both interest and fees. The APR, which is expressed as a yearly rate, factors in the loan interest rate and all fees paid to obtain the loan. Generally, the lower the APR, the lower the cost of your loan. When comparing APRs between loans, make sure the terms and conditions of the loans are the same.
When comparing a home equity loan to a home equity line of credit, you should be aware that the APR for the home equity line of credit only takes into account the interest rate on the line of credit, and does not include any additional fees.
How much will my payment be and when is it due?
When you schedule your closing, you will have the opportunity to select the date that your monthly payments will be due. Factors including loan amount, interest rate and term are used to determine the payment amount.
As a convenience, monthly payments may be automatically deducted from your Chase checking account. Ask your Loan Officer for automatic payments and you may benefit from an interest rate reduction.
Access the loan payments calculator
Can I make additional principal payments in order to pay off my loan early?
Yes. You may make additional principal payments. Include the additional amount with your regular monthly payment or visit your local Chase Branch to have the additional payment applied to your account. If you wish to pay your loan in full, check your loan terms to determine if a prepayment fee will apply.
Is there a penalty if I repay my loan early?
Most home equity loans include a fee, which is charged upon full prepayment. If this prepayment fee applies to your loan, it will be disclosed in your final loan documents. Chase may charge a prepayment fee if you pay your loan in full within 36 months of the date you close your loan. This fee will not exceed 1% of the original loan amount.
How long will a home equity loan take to close?
A home equity loan should close about two to three weeks after the application is submitted.
What must I do at closing?
We make closing easy!
In all cases, you will review and sign the loan documents. Documents may vary depending on the state in which you live. Typically, your documents will include a Promissory note Additionally, in many cases you will have three days after you sign the documents to change your mind and cancel the loan for any reason. This three-day right is known as your "Right of Rescission." The Right of Rescission does not apply to all accounts. If this right applies, you will receive a separate disclosure in your closing package informing you of this right.
If you are uncomfortable with the documents for any reason, you may always choose not to close your loan, even at closing. If you have any questions about your loan documents, please contact your Loan Officer.
Can I manage my account online?
Yes, you can manage your home equity account right from your home computer. Your account allows you to:
Pay bills
Check your available credit
View your transaction history
Confirm payments
Set up repeating payments
Order checks
Find or change your monthly payment due date
Have account "alerts" sent to you automatically
Transfer funds from your line of credit to your Chase bank account
Log on to http://chaseonline.chase.com/ and register your account to take advantage of these convenient account management tools.
How can I better protect my finances and myself?
Protect your loan or line of credit in case of unexpected unemployment, family leave, disability or other more serious events that could impact your financial future. Chase Payment Assurance will cancel all or some of your monthly payments during qualified events until you return to work, pay off your loan or line of credit or reach your maximum coverage. Ask your Loan Officer or call the special Chase Payment Assurance number, 1-800-530-8260, for more information. |
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What is a home equity line of credit?
Also known as a HELOC, a home equity line of credit is a type of revolving credit for which your home is pledged as collateral. The interest rate and payments are variable. The term is defined by a draw period and a repayment period. The payment each month is based upon the outstanding balance owed. As payments are applied to principal, your available credit increases accordingly.
You can estimate your home's equity by adding the balance of all the debts secured by your home, then subtracting the total from your home's value.
What are the primary advantages of a home equity line of credit?
The two major advantages of borrowing with a home equity line of credit are lower interest rates and potential tax savings:
The interest rate you pay on the average home equity line of credit is generally lower than the interest rate you will pay on the average credit card or other type of non-secured debt.
For home equity lines of credit, you can generally deduct the interest you pay. The interest you pay on credit cards and other types of personal loans is generally not tax-deductible. If your line exceeds fair market value of the property, the interest may not be tax deductible. Consult your tax advisor regarding the deductibility of interest.
What will my tax savings be?
How can a home equity line of credit be used?
You can use a home equity line of credit for almost anything. Common uses include debt consolidation (paying off high-interest credit card debt), home improvements, purchasing or refinancing a home, paying for education expenses, college tuition and buying luxury items. Chase makes accessing your line of credit easy - use your Chase Equiline Visa card, go into your local branch or simply write a check.
Can I purchase a home with a home equity line of credit?
Yes. With Chase EZPurchaseSM, you have the option of a low, interest-only payment coupled with the flexibility of accessing your home's equity over a longer period of time. Save money by avoiding mortgage insurance (MI or PMI, which is often required for traditional mortgage loans) and enjoy the flexibility of managing your own property tax and insurance escrows. EZPurchase can be used for a primary residence or a second home. Ask your Loan Officer or call 1-866-466-3042, for more information.
Can I pay off balances from other accounts?
Yes. You may use the proceeds of your new home equity loan or line of credit to pay off balances from other accounts, or we can process those payoffs on your behalf.
How do I access my line of credit?
In a variety of ways. You can request an advance in person at any one of our Chase Branch Locations. You can also obtain an advance by writing a check directly drawn on your line of credit account, or by calling 1-800-800-LOAN (1-800-800-5626). Home Equity Line of Credit checks are welcome anywhere a personal check is accepted.
In most states, your home equity line of credit can be accessed with an authorized Chase EquilineSM Platinum Visa® card. Simply use your card anywhere Visa is accepted – home improvement stores, ATMs and even when you are traveling out of state.
Note, however, that certain minimum advance rules apply; more detail on these requirements can be found in your home equity line of credit documents.
How does the Chase EquilineSM Platinum Visa® card work?
Chase Equiline Platinum Visa card allows you to access your home equity account anytime, anywhere.
The Chase Equiline Platinum Visa card gives you a convenient way to make purchases, or even get cash from any ATM right out of your home equity account. Plus, your Equiline card is covered by Visa's Zero Liability policy that protects you from fraudulent use of your card. Since your card is accessing your home equity line of credit, you'll enjoy the same great low rate you have now on all your purchases. Plus, any interest you pay may be tax deductible. Consult with your tax advisor regarding the deductibility of interest.
How do I use the Chase EquilineSM Platinum Visa® card?
Your Chase Equiline Platinum Visa card works just like a regular Visa card for purchases and ATM cash — only you know you're using your Home Equity Line of Credit from Chase. Simply present the card at any location that welcomes Visa, or provide the card number for phone and mail order purchases.
Can I still use my Home Equity line of Credit checks from Chase?
Of course. Your Chase Equiline Platinum Visa card is just another way to access your Home Equity Line of Credit account, at places and times when paying by check may not be convenient.
Is there a fee to have a Chase EquilineSM Platinum Visa® card?
No. Your Chase Equiline Platinum Visa card is available to current Home Equity Line of Credit customers at no extra cost.
How do I get the Chase EquilineSM Platinum Visa® card?
It's easy! Chase Equiline Platinum Visa card is a feature of your Home Equity Line of Credit account — there is no application or credit check required. New customers: ask your Loan Officer about this option when you apply with Chase. Existing customers, call 1-800-836-5656 today for more information.
Do I have to live in the residence I'm using as collateral?
No. Chase offers lines of credit on primary residences as well as second homes.
How much can I borrow?
Depending on loan type, property type and other criteria, you may be able to borrow up to $500,000. The relationship between your loan amount and your home's value is called the "loan-to-value" ratio, or "LTV." As LTVs increase, the cost of the loan in question usually increases as well.
I have a line of credit, how can I increase my credit limit?
To apply for an increase to your credit limit call 1-800-836-5656 or visit your local Chase Branch.
How do I know if I qualify?
You must complete an application for us to determine if you qualify. Take 10 minutes to apply online and get a response online in about 90 seconds!
APPLY TODAY!
Once you have applied, we will evaluate several criteria in making our decision.
Criteria may include:
Credit history
Employment and income
Amount of the loan or line requested
A review of the assessed value of the property and the amount of any existing mortgage debt on that property
Can I be self-employed and qualify?
Yes. Self-employed applicants can qualify provided they meet the approval criteria. Depending on your request, income documentation may be required.
Is there another way to borrow against my home equity?
Yes. Cash-out refinancing is not a home equity loan but it does let you borrow against your home's equity. In cash-out refinancing, you refinance the existing debts secured by your home (i.e. your mortgage) with a new loan, but in addition, you also borrow new funds over and above the total of those existing debts. The difference between your new loan and the total of the old debts is a loan against your home's equity.
Can I refinance my existing loan account and pocket some additional cash?
Yes. A home equity loan or line of credit is a good way to refinance your existing mortgage loan, take some additional cash and make one easy monthly payment. Chase does not set aside "escrows" for property taxes or property insurance. If your current mortgage loan has an escrow feature and you refinance it with a home equity loan or line, you will become responsible for the property taxes and insurance premiums.
How can I compare different lines and loans?
The APR or annual percentage rate, is an important factor to consider when shopping for a home equity loan because, in most cases it takes into account both interest and fees. The APR, which is expressed as a yearly rate, factors in the loan interest rate and all fees paid to obtain the loan. Generally, the lower the APR, the lower the cost of your loan. When comparing APRs between loans, make sure the terms and conditions of the loans are the same.
When comparing a home equity loan to a home equity line of credit, however, you should be aware that the APR for the home equity line of credit only takes into account the interest rate on the line of credit and does not include any additional fees.
Does Chase offer a fixed rate on a line of credit?
Most home equity lines of credit do not generally have fixed interest rates. Chase offers an option, however, that allows you to lock in a fixed interest rate on all or a portion of your line.
The Chase Fixed-Rate LockSM Option is like having an installment loan within a line of credit. You have the option of locking an advance at a fixed rate for the remainder of the life of the line. Rate locks can be placed on a fixed draw amount any time during the draw period. You may lock all or part of your line balance at a fixed interest rate, payment and term. You can have up to five (5) locks at a time. For convenience, you can designate unique names for each. For instance, "Jamie's Tuition." As the locked balance is paid down, the available line amount is increased proportionately and again available for use. Locks can be initiated at closing or at any time during your draw period.
Ask your Loan Officer about this option when you apply with Chase.
Note: The lock option is determined by the lock terms in your original Credit Agreement. Refer to your Credit Agreement for any applicable fees, minimum balance requirements and other terms.
How can I get the Chase Fixed-Rate LockSM Option?
The Chase Fixed-Rate Lock Option is like having an installment loan within your home equity line – and you can have up to five at one time. If you prefer fixed monthly payments for major purchases, this feature lets you set up a regular payment schedule while maintaining easy access to your remaining home equity line of credit. Locks can be initiated at closing or at any time during your draw period.
New customers, ask your Loan Officer about this option when you apply with Chase. Existing customers, call 1-800-836-5656 today for more information
How much will my payment be and when is it due?
During the home equity line of credit draw period, your minimum monthly payment will be the greater of 1% of the outstanding balance, the finance charge or $100. As an alternative, you may qualify for an interest-only payment during this time. During repayment, your monthly payment is a combination of principal and interest.
When you schedule your closing, you will have the opportunity to select the date that your monthly payments will be due. Factors including credit limit, interest rate and term are used to determine the payment amount.
As a convenience, monthly payments may be automatically deducted from your Chase checking account. Ask your Loan Officer to set up automatic payments.
Click here to access the loan payments calculator
Can I make additional principal payments in order to pay off my line early?
Yes. You may make additional principal payments. Include the additional amount with your regular monthly payment or visit your local Chase branch to have the additional payment applied to your account. If you wish to close your account, check your documents to determine if a fee to close will apply.
Is there an early closure fee?
In general, you may prepay your home equity line of credit at any time, and as often as you like, without penalty, as long as you leave your line of credit open.
However, if you choose to close or terminate your account within 36 months, you may be required to pay a fee to close the account. This fee will not exceed 1% of your credit line.
Additionally, if your state has mortgage tax and Chase paid these taxes for you, you may be required to repay some or all of this amount should you close or terminate your account within 36 months. After 36 months, this fee is not charged.
How long will a home equity line of credit take to close?
A home equity line of credit should close about two to three weeks after the application is submitted.
What must I do at closing?
We try to make closing easy!
In all cases, you will review and sign the loan documents. Documents may vary depending on the state in which you live. Typically, your documents will include a Credit Agreement or Promissory note and Deed of Trust or mortgage. Additionally, in many cases you will have three days after you sign the documents to change your mind and cancel the loan for any reason. This three-day right is known as your "Right of Rescission." The Right of Rescission does not apply to all accounts. If this right applies, you will receive a separate disclosure in your closing package informing you of this right.
If you are uncomfortable with the documents for any reason, you may always choose not to close your loan, even at closing.
If you have any questions about your loan documents, please contact your Loan Officer.
Can I manage my account online?
Yes, you can manage your home equity account right from your home computer.
Your account allows you to:
Pay bills
Check your available credit
View your transaction history
Confirm payments
Set up repeating payments
Order checks
Find or change your monthly payment due date
Have account "alerts" sent to you automatically
Transfer funds from your line of credit to your Chase bank account
Log on to http://chaseonline.chase.com/ and register your account to take advantage of these convenient account management tools.
How can I better protect my finances and myself?
Protect your loan or line of credit in case of unexpected unemployment, family leave, disability or other more serious events that could impact your financial future. Chase Payment Assurance will cancel all or some of your monthly payments during qualified events until you return to work, pay off your loan or line of credit or reach your maximum coverage. Ask your Loan Officer or call the special Chase Payment Assurance number, 1-800-530-8260, for more information |
