Chase Offers Patent-Pending 1% Mortgage Cash Back

Chase customers who choose to pay their new Chase mortgages regularly through Chase checking account debits can get back 1% of their total scheduled monthly principal and interest through a new patent-pending program. A customer with a $210,000 30-year mortgage bearing a 6% interest rate, for example, could choose to get $151.08 per year cash back or a total of $4,381 in rewards paid by Chase annually on each anniversary of the original date of origination over 29 years. Loans may be purchase mortgages or refinances. Borrowers must choose at the time of closing whether they want to receive the reward in the form of cash back or whether they would like the funds used to help pay down their mortgage each year. The creation of the loan resulted from customer research Chase did in which it discovered that for every one borrower that preferred rate reductions or closing cost discounts, two preferred the cash back concept. "We found that they liked this more than a closing cost discount and they also liked deciding how the loan would be paid," a spokesman told MortgageWire. The 1% Mortgage Cash Back is part of Chase's Exclusives program, which is aimed at rewarding checking account customers for using the bank's other products and services. Chase Exclusives also offers a discount of up to 0.50% on the quoted interest rate of a new home equity loan to borrowers who pay regularly through automatic checking account debits.