Chase Bank Published Higher Mortgage Interest Rates on February 5, 2014

Breaking away from the regular pathway followed by almost every mortgage lender until now, JP Morgan Chase Bank (NYSE: JPM) quoted higher mortgage interest rates for its standard, new home purchase and refinancing deals on February 5, 2014. This Wednesday brought along an unpleasant change in the benchmark 30 year fixed mortgage interest rates and made the Chase Bank’s loan products less popular in the market, as against the similar products offered by other lenders.

As of now, the potential home buyers can acquire the standard, 30 year fixed rate long term mortgage deals at an interest cost of 4.375% and an annual percentage rate of 4.439% today. However, in the short term lending section, the customers can find the 15 year fixed rate mortgage home loans coming out at an interest rate of 3.625% and being backed by an annual return of 3.753% today.

When it comes to flexible home financing, the bank attempts to deal with the needs of its prospective customers by offering the 5 year adjustable rate mortgage loans at a starting rate of 3.250% and an APR yield of 3.084%. For the seekers of more variable interest rates, the 7 year adjustable rate mortgage plans are an ideal pick at a rate of 3.500% and an APR yield of 3.234% to begin with.

In the refinancing playground, the bank is currently offering the popular 30 year fixed rate mortgage home loan plans at an interest rate of 4.375% and an annual percentage yield of 4.439% today. However, in the short term lending section, interested borrowers can spot the 15 year refinancing fixed rate mortgage packages being published against a lending rate of 3.500% and yielding an annual return of 3.609% today.

As far as the adjustable rate mortgage deals are considered, the bank publishes its 5 year refinancing home loans at a starting rate of 3.125% in its loan books, along with an annual percentage rate of 3.040%. On the other hand, the more flexible, 7 year refinancing adjustable rate mortgage schemes are up for grabs at a lending rate of 3.375% and are backed by an APR yield of 3.195% during the initial years of the loan.

The home purchase and refinancing mortgage rates published by banks are often affected by the change in the prices of MBS’s, which follow the direction of stock market movements. However, as the stock market lost its ground by the end of the day, only to leave the DJIA index behind at 15337.70, after a fall of -113.35, the bank did not move in the same direction and published its mortgage rates individually. On the other hand, irrespective of the interest rates, the stock prices of JPM shares ticked up by +0.37 and reached a new level of 53.66. 

Disclaimer: The advertised rates were submitted by each individual lender/broker on the date indicated. Rate/APR terms offered by advertisers may differ from those listed above based on the creditworthiness of the borrower and other differences between an individual loan and the loan criteria used for the quotes.

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About the author

Rob is a analyst and reporter covering stocks and business news.