JPMorgan Chase & Co. has created a reward program for people who get both their mortgage and checking account from the company.
Customers who choose to pay their new Chase mortgages regularly through Chase checking account debits can get back 1% of their total scheduled monthly principal and interest through the patent-pending program, the company said Monday.
A customer with a $210,000, 30-year mortgage bearing a 6% interest rate, for example, could choose to get $151.08 per year cash back or a total of $4,381 over 29 years in rewards paid by Chase on each anniversary of the original date of origination.
Borrowers must choose at the time of closing whether they want to receive the reward in the form of cash back or as funds used to help pay down their mortgage.
The creation of the program was a result of customer research by Chase in which it discovered that for every borrower who preferred rate reductions or closing cost discounts, two preferred the cash-back idea.
"We found that they liked this more than a closing-cost discount and they also liked deciding how the loan would be paid," a spokesman said.