Home Equity Frequently Asked Questions

We evaluate several criteria once we receive your application for a line of credit, such as your credit history, employment, income and the amount you’re requesting to borrow. We also consider your loan-to-value ratio, which is the relationship between your remaining mortgage loan balance and the value of your home. To check your credit score for free, visit Chase Credit Journey^SM. Make sure you understand our eligibility requirements before you apply.

The Chase Home Value Estimator is a quick, easy and free way to get an estimated market value of your home. We calculate your home’s value using a variety of sources, such as property records, ownership deeds, recent home sales reports and other mortgage records. We refresh this information regularly to keep home values up to date. We’ll also request an appraisal of the property during the application process to confirm its value, which will be used to support your requested line amount.

You can obtain a home equity line of credit on you primary residence if you’re able to prove that you live there for most of the year. In some cases, a secondary residence may be used as collateral (additional restrictions apply). Eligible property types include:

• Single-family residences (such as a house, townhouse or row house)
• Attached single-family residence (such as a condominium)
• Cooperative shares (co-op)
• Two-unit residences

Your credit limit will depend on the amount of equity in your home, your credit history and property location. Another factor is your loan-to-value (LTV) ratio, which is the relationship between your current mortgage loan balance and the value of your home. You may be eligible for a line of credit if your LTV is less than 80%. Find out how much you may be able to borrow with our home equity line of credit calculator.

Yes, you can apply for a home equity line of credit if you’re self-employed. We’ll ask you for proof of income, which includes a combination of both business and personal tax returns—and other documents to support your ability to repay. Learn more about what to expect during the application process or download our application checklist (PDF).

Yes, you can apply for a home equity line of credit if you’re retired. You’ll be asked to provide your previous two years’ tax returns, Social Security/pension award letters and investment/IRA statements—and other documents to support your ability to repay. Learn more about what to expect during the application process or download our application checklist (PDF).

With a Chase home equity line of credit, you can:

• Use what you need, when you need it. Borrow the money you need for home improvements or home repairs and to consolidate high-interest debts.
  
• Reduce your interest payments. Interest rates for a home equity line of credit are generally lower than credit cards and personal loans. By consolidating your debt into a new line of credit, you may be able to lower your interest payments, which will save you more money over time.
• Enjoy potential tax benefits. When you use a home equity line of credit for home improvements, a portion of your interest may be tax deductible. Because tax laws vary from state to state, talk with your tax advisor about what interest may be deductible based on your situation.

You can use a home equity line of credit for home improvements or home repairs and consolidating debt (e.g., paying off high-interest credit cards). We encourage you to borrow responsibly. Remember that you can only borrow funds up to your credit limit during your draw period.

Yes, the Chase Fixed-Rate Lock Option allows you to lock in an interest rate on all or a portion of your outstanding balance during your draw period. If you want a fixed monthly payment amount for major purchases, this option lets you set up a regular payment schedule, while maintaining easy access to your remaining line of credit funds.
 

Contact us to learn more or request a lock.

For a home equity line of credit, comparing the annual percentage rate (APR) of different options and lenders may not be enough to find the right option for you because the APR only considers the interest rate on the line of credit. You should ask lenders about any fees, payment options and the length of their draw and repayment periods when comparing your options.

After closing, you have three business days to cancel the account. This three-day period is called your “right of rescission” and it must pass before you can access your line of credit. You can schedule with your loan processor to have funds from your line of credit deposited into your checking account. Once your right-of-rescission period is over, funds can be disbursed on the fourth business day after closing, then you will have access to your funds on the fifth day.

We make accessing your line of credit easy. You can:

• Visit us online to transfer funds to your Chase checking account or to an external account.
• Request a cash advance to your Chase checking account, you can call 1-800-836-5656 or visit your nearest branch.
• If your account includes check access, you can use your line of credit checks to draw money from your account.

Yes, you can use funds from your line of credit to pay off other balances. Or we can combine those other balances into your line of credit—returning your other balances to zero—and you’ll make one monthly payment.

Generally it takes approximately 45 days to close on your home equity line of credit after you submit your application and required supporting documents. Learn more about what to expect during the application process or download our application checklist (PDF).

You'll review and sign your line of credit documents, which may vary by state. After you sign your documents, you'll have three business days to change your mind and cancel your line of credit. This three-day period is called your "right of rescission." After these three days, you'll be able to access your line of credit.

A home equity line of credit is based on a variable rate, which means your monthly payments will vary.

• During the draw period, which is the period of time you’re allowed to use your line of credit, your minimum monthly payment will include principal and interest. Of course, we encourage you to pay more than the minimum amount due to rebuild the equity into your home.
• During the repayment period, which is the period of time after the draw period when you’re repaying the outstanding balance, your monthly payment will be a combination of principal and interest.

When you schedule your closing, you’ll have the chance to request the date that your monthly payments will be due. For your convenience, we can automatically deduct your monthly payments from your checking account.

Depending on the terms of your credit agreement, the interest rate of your line of credit may be variable, which means your minimum payment amount may change when your rate changes.

Yes, you may make additional principal payments online, in person at any Chase branch or by mail using the payment coupon attached to your monthly statement.

When you begin your repayment period, you can choose to:

• Continue making your monthly payments. No action is required on your part for this change to happen. You’ll see your new payment amount on your monthly statements. You can also pay off the outstanding balance at any time.
• Refinance your outstanding balance into a new home equity account or new mortgage. If you meet current credit criteria, you could refinance your outstanding balance into a new home equity line of credit or mortgage loan.

Contact us before your draw period ends to find the best option for you.

Your repayment period can last up to 20 years, depending on the terms of your credit agreement. You can continue to make monthly payments throughout the repayment period to pay off your outstanding balance. Or, you can pay off the total balance at any time.

The draw period for your existing account cannot be extended. If you meet current credit criteria, you could refinance your outstanding balance into a new home equity line of credit or mortgage loan.

Your minimum monthly payment amount may be adjusted when your repayment period begins, depending on the terms of your credit agreement.

No action is required on your part for this automatic payment service to continue. However, please consider the impact on your checking account if your minimum payment amount is expected to increase.

Follow these steps to close your line of credit:

1.  Request a payoff quote by calling 1-800-836-5656. We'll fax or mail you a quote the same day we receive your request. Please allow 10 days for postal delivery.
2.  Pay all amounts due on your account (including principal, interest, charges, lien-release and/or other fees) with secured funds (such as a cashier's check sent to the address below or an online wire transfer made on chase.com) to bring your balance to $0.
3.  Sign the authorization form enclosed with the payoff quote confirming that you want to close your account. Make sure to include your full account number on the form and return it by mail or fax to:

Regular Mail:

Chase
Mail Code OH4-7166
3415 Vision Drive
Columbus, OH 43219-6009
 

Fax:
1-614-422-7575

Yes, please contact us to request a payoff quote because you may be required to pay a lien-release fee from your county clerk's office to close your account. After you pay this and/or any other amounts listed on the quote, send us your signed authorization form to the address or fax number above.

Your county clerk's office charges a fee for processing the release of the lien on your property. Your payoff quote will show this fee, which you're required to pay to close your home equity line of credit.

If you have any questions about your home equity line of credit, please call us at 1-800-836-5656.