NEW YORK – After exiting the business line five years ago during the early months of the COVID-19 pandemic, Chase Home Lending has returned to the home equity lending market.
The bank is looking to capitalize on record-high home values, according to Digital Channel Executive Erik Schmitt, who noted that in 2020 Chase responded to market uncertainty alongside peers Wells Fargo and Bank of America. BofA continued to make home equity loans but tightened its standards, while Wells Fargo has yet to return, Bloomberg reported.
“As home valuations reach historic highs, homeowners are looking for more options to tap into their home’s equity,” Schmitt said in a statement. “We’re proud to offer customers the ability to secure a HELOC through Chase. Whether it’s to fund a home renovation, debt consolidation or another financial goal, our HELOC product allows customers to meet an immediate cash need without compromising their existing interest rate.”
Nearly $18 Trillion
An Exchange Mortgage report published this month found borrowers held $17.8 trillion in total equity in the second quarter, including $11.6 trillion in equity that can be accessed while maintaining a 20% cushion.
“Roughly 48 million mortgage holders had tappable equity, with the average homeowner holding $213,000 in accessible value,” according to the report.
Chase HELOC customers can access up to 80% of their home’s value without changing their current mortgage rate, according to the bank. If the customer draws at least 85% of their available line of credit, they can receive it in a lump sum, and the remaining credit will be available for three years.
Repayment Options
For repayment, borrowers can make interest-only payments for the first 10 years of their loans and then have 20 years to repay the principal and interest balance, Chase said.
Chase HELOCs are available nationwide, excluding Texas.
