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Up to 50,000 United Miles With Chase Home Mortgages

by on June 7, 2012 · 12 comments

in Chase, United

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I know this might sound a little off-message, but I’m not completely sold on the idea of getting a mortgage that gives frequent flyer miles as a bonus. The skeptic in me feels like there’s gotta be a catch – and an expensive one at that.

At least with credit cards and even financial accounts, it’s pretty easy to compare and in a worst case scenario- close out the account. Mortgages are just so much more complex and long-term, that I’d be a lot more cautious getting one just for the sake of miles – even if it is a decent payday like 50,000 valuable United Mileageplus miles, which Chase is currently offering through this promotion.

Are miles for mortgages pushing it a little too far?

You need to call 1-866-737-0983 to begin processing your application so I’m not sure if the rates are actually competitive, but if I were on the market for a mortgage, I’d check this offer out. Even if you just got a mortgage, you can apply for several within 30 days and they will be consolidated into one hard inquiry on your credit report. There are many variables when it comes to mortgages, but you should be able to see the total cost of a Chase mortgage vs. another competitor. As a point of reference, I’d personally pay 1.5 cents per United mile (and possibly more), so I’d conservatively value 50,000 miles at $750.

I think another big benefit of getting a Chase mortgage is that you enhance your relationship with the #1 issuer of valuable rewards cards. If you want to maximize your miles and points, inevitably you’ll end up applying for multiple Chase cards (the best three in my opinion are the Sapphire Preferred, Ink Bold and Freedom - combined they make a powerful combination). Those of us who have multiple Chase cards know that you often have to call the reconsideration line (at 1-888-245-0625) to get approved for cards. The phone reps are generally well trained, savvy people who look at your total application and relationship with Chase before making the decision to decline or approve you. They are tasked by Chase to weed out the riff-raff- the people who will run up their bills and not pay them. I have to imagine that Chase credit agents would look positively on someone who has a Chase mortgage and pays it on time.

Additionally, if you are a Chase checking customer, you can get 1% cashback on your mortgage by enrolling in the Mortgage Cash Back Chase Exclusives benefit within 60 days of closing. Chase Exclusives is the Chase Checking program that also offers 10 points and 10% per transaction for the Freedom card, which is why I am using that card more than ever these days.

While the miles and building a solid relationship with Chase are nice things to have, I’d personally rather have money in my wallet. If you can get a much better deal elsewhere, go for it because cash is king. However, if Chase offers a competitive quote and a bunch of United miles, why not take the bonus? I’m currently not on the market for a mortgage, but would love to hear from people who are to see if this offer actually stacks up against the competition.

T&C
Advertised rewards available only for new applications for one-to-four-family properties with residential mortgages. Home equity loans and lines of credit are not eligible. Applications must be submitted by calling the number referenced in this advertisement or by visiting www.chase.com/ualoffer. Rewards cannot be combined with any other offer except Chase Exclusives. Mortgage applications submitted through a Chase branch or mortgage loan branch office are not eligible to earn MileagePlus miles in this program. Rewards will not be granted on existing mortgages or on applications submitted before 06/01/2007.

Please allow six to eight weeks from loan funding for MileagePlus miles to post to your account.

Our offer is solely for a loan secured by an acceptable and marketable first lien mortgage or security interest.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.

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  • dhammer53

    I researched this when we went through the process a while back. As you suggested up top, this is something that’s easy to research and figure out. While 50000 miles is nice, you’ll pay dearly for the miles if you end up with a higher mortgage rate and fees. It’s probably cheaper to buy the miles, or get a United credit card using one of TPG’s links.

  • nope

    Grammar, please!!!!!!

  • zakon

    Assuming the rates are competitive and that you’d want to move forward, what is the chance of double-dipping? I.e., refinancing and purchasing a new property, and getting 50K for each one? I don’t see anything in T&Cs that would prevent that…

  • Marc

    @dhammer53 – so when you researched it, was the rate or fees quoted actually higher vs a Chase mtg without the miles?

  • dhammer53

    At the time, the rates and fees were much higher, making the mileage deal a no-go. As always, YMMV. Do the research. You never know when a deal is really a deal.

  • Dee Tee

    I am assuming you never bought or sold a house. The amount you will pay the closing fees will be easily around $2,000.

  • zakon

    Love the misplaced sarcasm! I have a 5/1 ARM that I need to refi into a fixed fee program, and am also considering picking up an investment property, and am quite familiar with the fees you have to pay (which are much higher than what you listed). That wasn’t my question, but thanks for your concern anyway. My question is, can you close two transactions with Chase and get 100K miles.

  • Dbennett

    American also has a deal with Wells Fargo Home Mortgage. You get 1000 miles for every $10,000 financed. The deal had no effect on interest rates. You have to call the 800 mortgage number on AA’s website to start the loan process. You give your AA FF# at the start and everything else proceeds like any other mortgage process. After you close, the miles show up within a week in your account.

  • http://zzdouggo.blogspot.com/ Bottom-Feeding the High Life

    I would only use this as the most marginal criterion in the decision of where to go for a home loan. In my experience, you can usually find rates much better than Chase’s. Be sure to consider all origination fees and discount points, which can vary widely. Just about every lender will have a menu of rates vs. points to choose from for every loan product they have. Compare the HUD good-faith estimate forms line by line that each lender is required to give you when you ask for them.

    That said, if you are a first-time mortgage borrower or have special needs (such as a HARP refinance, FHA, or Jumbo loan, or if you have specific credit issues), it may be a good idea to find a full-service mortgage lender that will give you the hand-holding that you need. In this case, a local bank branch such as Chase may suffice, although it is still a good idea to shop around at several banks, mortgage lenders, and credit unions. If you are more experienced, you may be able to use an online lender that provides a lower level of service.

    And don’t forget that rates change multiple times a day. Also, I believe that every time you get a prequalification from a bank there will be a credit inquiry. Multiple mortgage inquiries within a 2 week period may not affect your credit score multiple times, but I know that it does raise eyebrows among credit card issuers as they do look at the total count of inquiries.

  • J0

    Per the screen shot, just call the toll free number, and there is a “mortgage consultan” who will answer all your questions.

  • hb

    The mortgage consultants will tell you anything you want to hear, to close the deal (i.e. whether you may qualify for a second transaction). Even if they do promise, ur unlikely to get it in writing

  • David

    TPG- You said, “As a point of reference, I’d personally pay 1.5 cents per United mile (and possibly more), so I’d conservatively value 50,000 miles at $750.”

    Do you mean this literally? Because I would personally sell 1.5 cents per United mile.

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