Does anyone know what CRA Chase uses to determine who to give mortgages to and their interest rates? My boyfriend and I are going to try to get a home within the next year but I have a number of derogatories that I am waiting for them to clear off because they are past the SOL in my state and he has a judgment that he is fightling but may not win. We have almost $50,000 among the two of us with our 401(K)s and savings. Thanks for any advice anybody can give!
They use TU for us and we're in Florida. They may pull different ones depending upon the state you live in. I've had my Chase Mortgage since 2001 when my Ohio Savings Bank mortgage was sold to them. I just refinanced it with Chase and it was very easy...streamline refinance with no credit checks, income verifications, etc...but that is only for current Chase mortgage holders. But I do check my TU about every 6 months and they do soft inquiries on there so I guess you may assume it's TU they pull. I also have a Chase Platinum CC with them too and they pulled TU to approve us about 3 yrs ago. Good luck!
Most mortgage companies will pull all three and use the middle score. The judgment may be a problem, you may want to talk to them first. While you can list the 401(K) as an asset, I'd think long and hard before taking the money out to put down on the mortgage.
Why? We are still young and don't plan on taking all of our 401(K) for a down payment. Since withdrawlas taken out of 401(K0s for downpayments on homes don't have to paid back I don't see a problem. Unless you can clarify for me.
Because you're young is the reason you shouldn't take it out. Read Butch's post on the Rule of 72. When you take this money out, you lose quite a few "doubles" of it. When I used to work in the investment field we had an illustration. I don't remember the exact numbers, but this is close: Person #1 starts working at age 21 (I think, maybe it's 18 but I believe it's 21). He is responsible and decides to contribute $2,000 a year to an IRA. $2,000 was the limit then. He has a friend, person #2, who decides he'd rather spend his money. After all, he's only 21, why does he need to worry about retirement? So, he saves nothing at all toward retirement. Fast forward 7 years (yes, SEVEN). Person #1 sees his friend spending all his money and decides that maybe he doesn't need to worry about retirement now. So, he stops contributing to his IRA. NOTE--he does NOT take any money out, just stops contributing. At the same time, person #2 decides that maybe he does need to think about the future. So, 7 years after person #1 opens his IRA, person #2 starts one. He contributes $2,000 EVERY YEAR until he is 65. Person #1 NEVER CONTRIBUTES AGAIN. At age 65, who has more money? Remember, person #1 has contributed a total of $14,000 ($2,000 a year for 7 years) while person #2 has contributed $74,000 ($2,000 per year for the 37 years between age 28 and age 65). The answer? They have the same!! Investing when you are young gives a much greater return at the end, since the last one or two doublings is what really makes the difference. So even if you paid it back later, you wouldn't get the compounding effect of all those years.
TAX CONSEQUENCES Income taxes on the amount withdrawn...even "IF" there is no 20% PENALTY (check with a tax expert)
I think you can withdraw for first time home purchase without the penalty, but I believe you still have to pay taxes, and depending on your tax bracket, it could really jack up your taxes. I'm not sure, though, I haven't done taxes for other people for several years. Maybe Flyingifr or someone who does this for a living will chime in. So, GEORGE is right about the tax implications. I hadn't even taken that into account, I was focused on the loss of the compounding effect.
you can borrow money from your 401k for home purchases with no penalty. money for downpayment for home purchases and you can extend payment for 36 months. this is for my 401k yours may be different.
Re: Re: Chase Mortgages THIS IS A SECURED LOAN AGAINST THE 401k... I thought we were talking a 401k WITHDRAWAL...not loan
Yes, you can take out a loan but think about it...what would happen if you suddenly lost your job? Then most 401K's want the total loan amt due up front upon lose of job. I'd check into that first.
We weren't planning on taking all of it out. Just enough for a downpayment. We live in NYC and have submitted for a couple of properties (2-3 family brownstones) by lottery. (We might not even get called!) These homes, as long as we don't make over $90,000 total, will qualify us for downpayment assistance of up to $30,000 from the seller. We just need to show that we have some funds for some of the closing costs and two months rental income if we can't find borders right away. We also might even consider foreclosed homes for starters. We don't like to consider taking out on our 401(K)s but that is where the bulk of money is. Luckily, the rep from Chase Residential Lending stated that as long as we can prove we have the funds and a stable work history in the same field, a person can qualify for most of the assistance. We are also first-time homebuyers. I'm hoping that would make a difference.
Foreclosed homes can be a good investment, just make sure you get an independent inspector to go over the house. You want to know going in what it will need. The house I'm living in was a foreclosure. Fortunately for me, it was owned by a couple of professional people who kept it up pretty well. It was foreclosed because they divorced and didn't want to bother with it, so they let it be foreclosed. The reason I said it was fortunate was because they kept it up right until it was foreclosed. Sometimes people don't have the money and don't keep up with repairs. But if you can find a foreclosure in good shape, you can get a good deal, start out with some equity already in most cases.
I don't know about their mortgages, but if you search here for Chase, you'll find that they rate jack on credit accounts every chance they get--for no reason at all. Maybe you use too much of your credit, or you paid someone else late, or they put an erroneous late on your account. Even if they admit it was wrong, they won't reduce your rate. Ask GEORGE about this one!
WOW...that's odd...I've had my Chase Platinum now for 5 yrs....started at 12.99% and called a few years back for a lowering of it. No questions asked...they lowered it to 7.24% fixed and sent me a letter stating that. I've had NO problems with them raising interest rates on me. I think they will do it if you don't pay your bills, not just because they like to.
It's like any other bank, I guess. Some like it, some don't. Some have problems, some don't. But I think I was wrong about GEORGE's problems--I think that was MBNA. But there was a thread a few days ago about Chase. A late payment showing on your credit report (real or not) to ANY creditor often gets your rates jacked. I've closed all of my Chase accounts, including an unsecured line of credit, and I think it's good riddance. I can't find the other post, but it was in the last few days. Might have started as something else and "devolved" into a Chase bashing post!
Yeah, you hear one bad thing about a company and BAM you have to close out your accounts and run for cover. I've heard good and I've heard bad about Capital One too...I've had my credit card with them for years and have never had any problems with it. Now I've had bad experiences with Providian Bank and left them in a heartbeat. They really sucked. My mortgage and 2 CC's are thru Chase and I like them so far and it's been 5 yrs. But you never know until something happens too.
