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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.
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.
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.
Chase Sapphire Preferred® Card
|Intro APR||Regular APR||Annual Fee||Foreign Transaction Fee||Credit Rating|
|N/A||16.24%-23.24% Variable||Introductory Annual Fee of $0 the first year, then $95||0%||Excellent Credit|