170,000 United Miles for $100 [Archive]

ultraman

Sep 1, 04, 3:49 pm

I just completed a Equity Line of Credit with Chase Bank and should receive 170K United miles in the next 6 weeks. I wanted to pass this on because the offer is good until Sept. 30, 2004. Right now you can get 4250 miles for each 10,000 borrowed with four banks. The best deal for me was to borrow $400K from Chase for no cost (They paid appraisal, title, etc.). The loan application took about an hour of my time and was approved and funded in a month. As long as you start the loan process by 9/30 they said you will receive the bonus miles.

I drew the full equity line amount last week and then paid it right back and had to pay for 4 days interest. My total after tax cost for this was $100. (see calculation at end of this) The URL that tells how to sign up for the bonus (found on Gary's Free Frequent Flyer Miles web site under Finance- Home Buying)

http://www.united.com/page/article/0,6722,50776,00.html

My cost calculation: $400,000 loan at 5% for 4 days less 35% tax deduction
=400,000x.035/365 days x 4 days x .65 (tax deductible) = $99.73. :p

I have started another equity line of credit with Washington Mutual on my rental house for $500K and it has been approved contingent upon the appraisal. This loan has no costs but you must keep the equity line open (even with a $0 balance) for 3 years or pay a penalty of $500. This loan will net 212,500 miles with United. :cool:

bennytma

Sep 1, 04, 5:32 pm

Interesting.....any financial consultants want to take a crack at how this might affect one credit rating? to be continued

janhigginskcmo

Sep 1, 04, 5:55 pm

How would it hurt you and your credit rating??? Its just a opened line of credit and then was closed later. I (Formerly being a loan officer) think its a great idea. Actually I was tossing a HEL idea around for A FEW MONTHS. Home repairs/upgrades are hard when your trying to pay cash for it. Once the loan is paid in full you can have the 2nd mortgage released.

But, you wan to make sure there is not prepayment penality.

JIMCHI

Sep 1, 04, 6:08 pm

What and where is "Gary's Free Frequent Flyer Miles" website ??

myefre

Sep 1, 04, 6:27 pm

:eek: :eek: :eek: :eek:

CART_Flagman

Sep 1, 04, 6:29 pm

What and where is "Gary's Free Frequent Flyer Miles" website ??

www.freefrequentflyermiles.com

satori

Sep 1, 04, 6:30 pm

cartflagman beat me to the post ;) .

Middle_Seat

Sep 1, 04, 7:07 pm

Great find, ultraman!

ejmelton

Sep 1, 04, 7:25 pm

My cost calculation: $400,000 loan at 5% for 4 days less 35% tax deduction
=400,000x.035/365 days x 4 days x .65 (tax deductible) = $99.73. :p

I have started another equity line of credit with Washington Mutual on my rental house for $500K and it has been approved contingent upon the appraisal. This loan has no costs but you must keep the equity line open (even with a $0 balance) for 3 years or pay a penalty of $500. This loan will net 212,500 miles with United. :cool:

A) Your cost calculation is based on 3.5%, not the 5% that you describe. Raises the cost a bit.

B) When I talked to WaMu they would not lend on investment property. Have they agrreed to this?

Thanks!

pgary

Sep 1, 04, 8:17 pm

The deal is via Awards for Mortgage, which has associations with several other airlines, most of which are also offering bonuses. Go to my the Finance page of my website, Free Frequent Flyer Miles (http://www.freefrequentflyermiles.com/index.htm), and click on the page main page and do a word search on "Awards for Mortgage" to find them. I have no knowledge of whether or not there are extra fees on these offers that were not found on the United offer. Ask.

Note that the miles have not yet actually posted...

SFplat

Sep 2, 04, 10:44 am

sounds good... no AA though. :(

UAVirgin

Sep 2, 04, 11:07 am

ORDNorth

Sep 2, 04, 11:15 am

....Note that the miles have not yet actually posted...

Might you need to keep the HEL of credit "open" for a period of time before you earn all of the associated miles, similiar to the phone number sign bonus being "paid out" over 6 months? If so, the cost to carry this as an open line for 6 months might just kill any deal?

Jaimito Cartero

Sep 2, 04, 12:20 pm

If the account just has to be open, as opposed to carrying the full balance, then it would still be a good deal. Some HEL's have a yearly fee (usually waived the 1st year), so you would want to watch out for it.

ultraman

Sep 2, 04, 3:15 pm

Might you need to keep the HEL of credit "open" for a period of time before you earn all of the associated miles, similiar to the phone number sign bonus being "paid out" over 6 months? If so, the cost to carry this as an open line for 6 months might just kill any deal?

When I talked with the Awards for Mortgage & R.E. agent as well as the loan broker for Chase they both said that the miles (4250 per 10,000) are based upon the initial "draw" of the line of credit. In fact it was the Chase broker who suggested I pay it off after the draw. I could not find anything in writing so now it is the waiting game for the miles to post. The Chase loan waived the yearly adminstrative fee and have no prepayment cost. I will wait for the miles to post and then close the line of credit (with the $0 balance).

battia

Sep 2, 04, 3:19 pm

While I think this is a fantastic way to get miles; there is, as someone suggests, potential damage to your FICO score when adding a line of credit. However, this is true whenever you add new credit of any kind and it is normally a nominal hit and rebounds within a few months.

ultraman

Sep 2, 04, 3:19 pm

A) Your cost calculation is based on 3.5%, not the 5% that you describe. Raises the cost a bit.

B) When I talked to WaMu they would not lend on investment property. Have they agrreed to this?

Thanks!

The reason I used 3.5% is because my credit union paid me 1.5% for the $400K balance during the 4 days I had it.

WaMu said they will do a equity line of credit on a single family resesidence but that the interest rate would be prime plus 1.5% vs prime plus .5% for owner occupied. That will increase my cost $50.

ultraman

Sep 2, 04, 3:22 pm

ultraman

Sep 2, 04, 3:24 pm

ananthar

Sep 3, 04, 12:01 pm

I too have noticed this strange practice of HELOC issuers not requiring previous HELOCs to be closed out. This happens even when the previous HELOC shows up on the credit report : My HELOC has a clause in their agreement stating that borrower agrees not to draw on any prevous HELOCs. Perhaps they want to save the cost of filing the satisfaction for the previous HELOC, but it still seems like an awfully risky practice.

battia

Sep 3, 04, 1:12 pm

Sounds to me like you got lucky with your FICO; or possibly if you used a loan broker then they used the same report for each transaction. I do the real estate/loan broker thing myself for the past 20+ years and have been known to use the same report for multiple transactions.... they are good for 120 days and save my clients the cost of running add'l reports. In any event the new (4 yrs =/-) "FICO" scoring system that now exists is a mystery to most of us even those of us who work with it daily! It is like a secret formula that each bureau uses and we never know for sure what impact will be seen. In any case... good deal for you!

WIth respect to the HELOCS, if one (Chase)was on your primary residence and the new one (WaMu) was on an investment property there should not have been a requirement to payoff the Chase loan even if it had shown up on your report unless of course it affected your debt to income ratio to an unacceptable level.

I just did my own HELOC with Chase a couple months ago.... but now I believe I will refi that line in order to take advantage of this offer! Costs are minimal and prime rate is prime rate whomever the lender is.... so why not!?!

Thanks for the lead!

wideman

Sep 3, 04, 2:07 pm

battia

Sep 3, 04, 2:18 pm

If you could even get a HELOC behind an existing HELOC (which I am 99% sure you could not...but hey, I've never tried) you could absolutely only get a maximum of the difference between the total available line amount ($300k) and the appraised value ($500k) or a new line of $200k.

Something to seriously consider though.... is while we are doing a truckload of HELOCS these days... the prime rate is on the rise and the usefulness or shall I say the economic advantage of a HELOC over a mortgage is diminishing and IMHO will continue to do so for the foreseeable future. If you wish to take advantage of the mileage earnings, consider turning your first HELOC into an actual mortgage and then adding the full HELOC up to the appraised value... that's a win-win and depending on your current margin over prime on the existing HELOC, may not add too much to your interest rate while fixing it for a period of time. Just a thought!

ultraman

Sep 3, 04, 2:43 pm

I currently use a HEL in lieu of a mortgage. Is there a problem in opening a 2nd HEL?

Suppose my residence is valued at $500k, my current HEL has a total credit line of $300k, and my current balance is $150k. Assuming that it's ok to have a 2nd HEL, could I get a line for and borrow $350k (the difference between my current HEL balance and the house's value), or could I borrow only $200k (the difference between my line of credit and the house's value)?

One disadvantage to an Equity Line of Credit on your primary residence is that on the interest on the first $100K borrowed is tax deductible. I am not sure how the IRS can track a HEL vs a mortgage but be forwarned.
If you go the HEL route why not borrow the full $500 (in your example) and get more United miles (212,500 miles) and have your first HEL paid off at close of escrow?

ultraman

Sep 3, 04, 2:48 pm

WIth respect to the HELOCS, if one (Chase)was on your primary residence and the new one (WaMu) was on an investment property there should not have been a requirement to payoff the Chase loan even if it had shown up on your report unless of course it affected your debt to income ratio to an unacceptable level.
Thanks for the lead!

Your Welcome.

Since you are "in the business" how do they calculate the debt to income ratio. If I have a HEL for $400 but only have $50K drawn do they use $50 for my debt?

battia

Sep 3, 04, 3:21 pm

Your Welcome.

Since you are "in the business" how do they calculate the debt to income ratio. If I have a HEL for $400 but only have $50K drawn do they use $50 for my debt?

Unfortunately... no. The norm is to use a formula (depends on lender) between .70% - 1% of the total available line amount as a debt. So for your $400k HELOC, your monthly payment would be considered to be $2800 - $4000/month. This is true even though on a prime + 0% HELOC, your required interest only payment would currently be only $1500 if you had used the whole line!

ananthar

Sep 3, 04, 4:01 pm

One disadvantage to an Equity Line of Credit on your primary residence is that on the interest on the first $100K borrowed is tax deductible.

This is not true. All of the interest on a $500K HELOC may be deductible if the HELOC replaced part or all of a first mortage (refinance) or was part of a purchase financing or financing for a home improvement.

The limitation is that you cannot take out more than $100K in new mortgage loans on your home for any purpose other than improving the home, without losing the interest deduction on the amount over $100K. However, it doesn't matter if the new mortgage is a regular mortgage (cash out refinance) or a HELOC you added on or just a new draw on your old HELOC.

This does mean that OP cannot deduct the interest on most of his 4 day HELOC loan (only the interest on the first $100K is deductible), unless the home is a rental property. Of course you can always pretend to be ignorant and the worst that can happen is that the IRS audits you and disallows the deduction.

battia

Sep 3, 04, 4:09 pm

The limitation is that you cannot take out more than $100K in new mortgage loans on your home for any purpose other than improving the home, without losing the interest deduction on the amount over $100K. However, it doesn't matter if the new mortgage is a regular mortgage (cash out refinance) or a HELOC you added on or just a new draw on your old HELOC.

Actually, the rules are a bit more liberal than that and you will find that medical and educational expenses are also allowed; there may be more allowances as well but these are the most well-known.

eager to learn

Sep 3, 04, 6:14 pm

Ultraman, i clicked on the hyperlink in yur message and it says 5000 miles for each $10000 sept 1 to nov 15. am i in the right place? :confused:

ultraman

Sep 3, 04, 6:32 pm

United has sweetened the "mileage for loan" program and extended the deadline. From Sept 1st to Nov 15th you get 5,000 miles for every 10,000 borrowed. So for a $500K line of credit that is 250,000 miles. I may have to get a 3rd loan for another 250,000 miles before Nov 15th. :p This is a lot easier than all the gift cards I bought.

http://www.united.com/page/article/0,6722,50776,00.html

Awards for Mortgage & Real Estate
Dates: September 1, 2004 through November 15, 2004
Offer: Earn 5,000 miles for every $10,000 financed at closing (regularly 1,300 miles per $10,000) on a second mortgage Home Equity Loan with Chase Home Finance or Wachovia’s Corporate Mortgage Services Division. That’s a 2,950-mile bonus.
Terms and conditions: Terms and conditions apply
Get started now: To qualify, all home loan applications must be submitted online at united.com/awards4mre or at 1-877-633-2200. Provide promo code HE3700 at the time of registration.

pgary

Sep 4, 04, 2:39 pm

ultraman

Sep 4, 04, 9:42 pm

Does this new deal still come with no fees?

No fees on the Chase loan. Just call the number in the link and ask the loan officers of each loan company.

pgary

Sep 5, 04, 1:17 pm

No fees on the Chase loan. Just call the number in the link and ask the loan officers of each loan company.

Yes, but then you have to deal with Chase. In my experience with the savings side of that operation, customer service reps will always contradict each other, and will say any guess that comes to mind.

estnet

Sep 5, 04, 3:05 pm

Can the money be wired into an account and also wired or ACH for payment? Since I don't lve near a Chase the time for mail transactions could lengthen the time I have to pay interest. Yes - I know I can call but it will be 2 whole days before it is a business day :D

BTW - you can get around 2.5 % from ford credit (fordcredit.com) money market, please note I am not recommending this and these accounts are NOT insured.

JUST REREAD OFFER - isn't it 1350 miles (for equity line) per $10,000 plus a one-time 5k bonus? Wouldn''t this make 100,00 = 13,500 miles plus 5 k= 18500 or 400 k 54 k plus 5 k for a total of 59,000 miles rather than 170k? I hope my math is wrong - 170k is much better than 58 k :o Whoops - just noticed that the linked page says 5k/$10000 but I was looking at the next page that gave an example with the 1300 figure rather than the new one so I got confused......anyway

saw similiar offer for Delta (don't remember if this was already mentioned)

ultraman

Sep 6, 04, 4:20 pm

1. Can the money be wired into an account and also wired or ACH for payment? Since I don't lve near a Chase the time for mail transactions could lengthen the time I have to pay interest. Yes - I know I can call but it will be 2 whole days before it is a business day :D

2. BTW - you can get around 2.5 % from ford credit (fordcredit.com) money market, please note I am not recommending this and these accounts are NOT insured.

3. JUST REREAD OFFER - isn't it 1350 miles (for equity line) per $10,000 plus a one-time 5k bonus? Wouldn''t this make 100,00 = 13,500 miles plus 5 k= 18500 or 400 k 54 k plus 5 k for a total of 59,000 miles rather than 170k? I hope my math is wrong - 170k is much better than 58 k :o Whoops - just noticed that the linked page says 5k/$10000 but I was looking at the next page that gave an example with the 1300 figure rather than the new one so I got confused......anyway

saw similiar offer for Delta (don't remember if this was already mentioned)

To answer your questions (where I can)

1. I did have the initial draw wired to my account. I was planning to wire it back but Chase did not have the account set up in their computer and they have a form that has to be signed and they need the account number in the computer before you can sign it. So.. I mailed the money back and paid a few extra days interest (4 days vs 1 or 2 days). Net additional cost ~ $60.

2. Since my interest income was for only 4 days the difference between 1.5% and 2.5% was not worth setting up a new account. I was initially planning to wire the money back to Chase and my Credit Union is close by.

3. The example they give for the miles for equity line of credit is for their "regular" offer of 1,250 miles per 10.000 borrowed. That is why the current offer of 5,000 per 10,000 is so fantastic. I printed off the offer information in case they try to only give the 1,250/$10K. It will be 5 more weeks of waiting.
What kind of offer is Delta giving? I have not found any other airlines giving more than 1,250/$10K borrowed.

sactoroy

Sep 6, 04, 10:16 pm

Is it 100% of property value less first mortgage or can you borrow more?

estnet

Sep 6, 04, 11:38 pm

I could have sworn it was 3k miles /$10000 for Delta but didn't mark the link and now all I can find is 2.6k miles (it is double the usual offer and you have to go to the limited time offers link)

https://www.delta.com/skymiles/getmiles/financial_partners/financial_lto/index.jsp

Earn double miles (2,600 total miles for each $10,000 financed on your closing date) with a second mortgage Home Equity Loan or Line Of Credit from Chase Home Finance or Wachovia Corporate Mortgage Services.

To qualify, all home loan applications must be submitted online or by phone at 877-554-2200. Provide reservation code HEX2 at the time of registration. Applications must be submitted between 8/15/04 & 10/15/04 and loan closed by 3/31/05.

ultraman

Sep 7, 04, 1:10 pm

Is it 100% of property value less first mortgage or can you borrow more?

For Chase it was 75% of property value less the first mortgage.

estnet

Sep 7, 04, 5:05 pm

Ultraman

When I called about the UA deal they told me that Washington Mutual didn't participate (maybe just in my area?) - so be careful if you are doing your vacation refi

hyderabad

Sep 9, 04, 8:20 am

Is this a wise thing to do to take an equity loan for miles? looks like not too many people are doing it.

wideman

Sep 9, 04, 11:44 am

I've done a bit of checking on this, and it could be a good deal for some people, not such a good deal for others.

For Home Equity lines, you can get 5000 miles per $10,000 borrowed with a HEL from either Chase or from Wachovia.

Chase offered me a rate of prime+0.0% for a line of up to $200,000, or a rate of prime+0.25% for a line in excess of $200,000. I could have a line up to 85% of the house value, and there would be no application or closing costs.

Wachovia offered a rate of prime+0.0% for any line up to 90% of the house value. However, I would have to pay closing costs, which for my state (MA) was estimated to be $800-900.

I currently mortgage my house using an HEL where the rate is prime-0.3%. So, for every $100k that I finance, it would cost me $300/year to switch to a prime+0.0% rate, or $550/year for a prime+0.25% rate. Not at all an obvious choice.

(It would likely be a much more obvious choice for someone with a $0 mortgage balance.)

hyderabad

Sep 9, 04, 1:06 pm

Thanks for the information. What if the house is worth $300,000 with a balance of $98.00. Can't we take a HEL for the equity and pay it back right away?

ultraman

Sep 10, 04, 12:08 pm

Thanks for the information. What if the house is worth $300,000 with a balance of $98.00. Can't we take a HEL for the equity and pay it back right away?

That is exactly what I am doing. That is why this is such a good deal for anyone with excess equity in their house or a a rental. That is how I plan to receive 170,000 miles for $100 (see my original post).

ultraman

Sep 10, 04, 12:10 pm

Ultraman

When I called about the UA deal they told me that Washington Mutual didn't participate (maybe just in my area?) - so be careful if you are doing your vacation refi

I reconfirmed with WaMu and they are doing the UA program thru the 3rd party company. They send a list of borrowers to the 3rd party company with the initial draw amount on the 3rd day of each month. The 3rd party will post the miles approx. 4 weeks later.

Deltahater

Sep 10, 04, 12:58 pm

When I applied for the WaMu loan the Chase loan was not in the credit report so they are not requiring me to pay it off. So if this loan goes thru I will have my original $200K line of credit, the $400K Chase line and the $500K WaMu for a total of $1.1M. I better close these loans before I get greedy. :)

This is a great concept. Do you have all three loans on the same property? If you time it right, can you do that?

I am thinking of applying at all three for the same amount, earn the 600,000 mls (400K/10K*5K *3) and pay it all back within 3-4 days like you did. Think that will work?

And while I am at it, could I do it with DL as well? I know, much fewer miles, but still it would net me 150K mls

Any thoughts?

mahasamatman

Sep 10, 04, 4:59 pm

For Chase it was 75% of property value less the first mortgage.
They offered me 100% LTV for prime + 1.25%. I still need to check if there's a fee for closing the line. (My Citi HELOC had a penalty for closing within 2 years.)

ultraman

Sep 10, 04, 5:40 pm

This is a great concept. Do you have all three loans on the same property? If you time it right, can you do that?

I am thinking of applying at all three for the same amount, earn the 600,000 mls (400K/10K*5K *3) and pay it all back within 3-4 days like you did. Think that will work?

And while I am at it, could I do it with DL as well? I know, much fewer miles, but still it would net me 150K mls

Any thoughts?

I have two loan on my house. When I applied for the Chase loan they said they would pay off my existing 200K equity line but when the loan closed they told me it was up to me to close it. I did close it but no where in the loan papers was I required to close the existing line of credit.
When I applied for my HELC on the rental property the Chase loan did not appear on my credit report.
I don't know how three loans will work. Let us know when you do it.

dhuey

Sep 10, 04, 5:53 pm

This is one great deal the original poster has found. I'd take advantage of it, but my wife would have me committed if I did. She's agreed to open brokerage accounts, close them; open credit card accounts and close them -- all in the relentless pursuit of miles.

If I present her with a home equity line of credit for our house, simply as a mileage generating idea, she'll go from shaking her head to initiating civil committment procedings.

johnp012001

Sep 10, 04, 6:01 pm

Awards for Mortgage & Real Estate
Dates: Home Equity Loan applications submitted between September 1, 2004 through November 15, 2004
Offer: Earn 5,000 miles for every $10,000 financed at closing (regularly 1,300 miles per $10,000) on a second mortgage Home Equity Loan with Chase Home Finance or Wachovia’s Corporate Mortgage Services Division. That’s a 3,700-mile bonus.
Terms and conditions: Terms and conditions apply
Get started now: To qualify, all home loan applications must be submitted online at united.com/awards4mre or at 1-877-633-2200. Provide promo code HE3700 at the time of registration.

Hope the OP will post as soon as he get's credit for this. The offer as it is on the site today is for a Home Equity LOAN, which is not the same as a Home Equity Line of Credit. Hope all your efforts haven't gone in vain!

I currently use a HEL in lieu of a mortgage. Is there a problem in opening a 2nd HEL?

Be very cautious using a HELOC in lieu of a mortgage. That CAN cause a huge drop in your FICO. A major component in your FICO score is now the percentage of available credit used, both cumulatively, and on each account. You're not doing too bad at 50% utilization, but higher than that and you'll see your score start to drop.

estnet

Sep 10, 04, 8:50 pm

I reconfirmed with WaMu and they are doing the UA program thru the 3rd party company. They send a list of borrowers to the 3rd party company with the initial draw amount on the 3rd day of each month. The 3rd party will post the miles approx. 4 weeks later.

It was the 3rd party (the # on the link) that either toldme Wash Mut was not participating in the miles (or possible in the bonus miles). If you find out otherwise please let me know b/c WM is local and I could pay the loan off at the bank directly. There is a BIG difference btwn 1300 or so or 5k/$10000 ;)

ultraman

Sep 12, 04, 1:04 pm

It was the 3rd party (the # on the link) that either toldme Wash Mut was not participating in the miles (or possible in the bonus miles). If you find out otherwise please let me know b/c WM is local and I could pay the loan off at the bank directly. There is a BIG difference btwn 1300 or so or 5k/$10000 ;)

You are correct that WaMu is not participating in the 5k/$10,000 line of credit. That is my mistake. It is only Chase and Wachovia. Chase has better terms (no cost no prepayment penalty) but does not loan on a rental property.

janhigginskcmo

Sep 12, 04, 1:21 pm

I have been talking to my mom about doing this. She has a house free and clear of any mortgages with a value of 750,000. She's alittle afraid, mainly becuase she has never done something like this before but, follows me in what I do to gain points also.

Any tips and hints? Loop holes that should make her worry?

jazzman

Sep 12, 04, 1:24 pm

Could the words "Equity Line" or "Loan" be added to the subject of this thread so that it's easier to delineate it from other schemes when scanning the posts?

I've opened it like a dozen times forgetting I'd looked at it before and I'm not in the market for a Loan.

Come to think of it, some sort of sorting system (like keywords in the subject line) would be very helpful for some of these sorts of threads.

ultraman

Sep 14, 04, 12:05 pm

I just started a loan with Wachovia on a rental property:
Terms:
Loan amt: $450K for 225,000 miles
Interest Rate: Prime +1% 10 year draw
Fees: Appraisal, Recording and title fee: $650.

They will pay off my Chase Equity line (on my house) off when we close the loan. Then maybe I will do another loan before Nov 15th?

Paiteaw

Sep 15, 04, 5:38 pm

I have two loan on my house. When I applied for the Chase loan they said they would pay off my existing 200K equity line but when the loan closed they told me it was up to me to close it. I did close it but no where in the loan papers was I required to close the existing line of credit.
When I applied for my HELC on the rental property the Chase loan did not appear on my credit report.
I don't know how three loans will work. Let us know when you do it.

Ultraman,
Perhaps this deal sound too good to be possible. I spoke with a rep from Chase today and was told I could not have two HELOC's since I have one presently. I wanted to apply for the LOC from them and pay it back right away. Was informed it takes a couple weeks to get the loan into their system before you can pay it off, so that would increase the number of days interest accrues. Not good for minimizing the cost of transaction.
What I would like to ask you is does your loan agreement with Chase require you to repay the appraisal & closing costs if you do not keep the loan open for some period of time ? Thanks for your information.

ultraman

Sep 15, 04, 9:07 pm

Ultraman,
Perhaps this deal sound too good to be possible. I spoke with a rep from Chase today and was told I could not have two HELOC's since I have one presently. I wanted to apply for the LOC from them and pay it back right away. Was informed it takes a couple weeks to get the loan into their system before you can pay it off, so that would increase the number of days interest accrues. Not good for minimizing the cost of transaction.
What I would like to ask you is does your loan agreement with Chase require you to repay the appraisal & closing costs if you do not keep the loan open for some period of time ? Thanks for your information.

Since the WaMu HELOC does not give the bonus miles I am going with Wachovia and in order to get the maximum loan amount they will pay off the balance on my CHASE HELOC ($41K). It is true that the loan was not on their system when I paid it off (2 days after closing) but I just put the loan # on the check and sent it to the address given in the closing papers and they applied it against the loan. My original plan was to wire the money the day after I received it but I could not due to the loan not being in their system. I paid for 4 days interest (see earlier postings). The loan agreement with CHASE was no prepayment penality and no appraisal or closing costs. Wachovia requires that you keep the line of credit open (even with a $0 balance) for 2 years or pay a prepayment penalty of $400.

lemex

Sep 16, 04, 6:29 am

Has anyone seen a similar offer available in Canada?

Deltahater

Sep 16, 04, 7:05 pm

It seems that only Chase will do a LOC in TX. All others will not. At least not as part of this deal. It seems that there are predatory lending laws in texas and apparently the offer is so good that it is against TX law. Don't know how Chase does it, but will find out and communicate success or failure...

Deltahater

Sep 18, 04, 10:06 am

Chase, at least in TX, limits the LOC to 50% of the home value, minus any outstanding Loans you may have.

For example, your house is worth $500,000. First Mortage is $200,000, Chase will loan you 50% of $300,000 or $150,000 which will give you 75,000 miles....

Wonder if the spouse can get a loan at the same time for the other $150,000

WindFlyer

Sep 19, 04, 2:26 pm

Wonder if the spouse can get a loan at the same time for the other $150,000I doubt that.

duplojohn

Sep 19, 04, 2:56 pm

good move!

I had (on a refi) years ago picked up some 50K+ United Miles from Countrywide.

When we bought or current house, my credit union had competitive rates and a more attactive deal, but no miles program.

When I mentioned this to the broker, he kicked me back $1,000. in AA gift Certificates as a deal closer.

"ANYBODY CAN COOK A TROUT, THE TOUGH PART IS HOOKING ONE"

dj

hyderabad

Oct 5, 04, 11:58 am

hyderabad

Oct 5, 04, 11:59 am

Did you get the united miles for HELOC yet?

sdflyer04

Oct 5, 04, 12:48 pm

hyderabad

Oct 6, 04, 6:51 am

We closed our loan on September 22nd. The money was wired to our account on 27th. I sent in the full payment with extra $100.00 to apply towards the interest. I did an overnight spending $13.86. The payment was posted by chase on October 1st. They total interest was $85.55. We took a loan of $167,000. Now we have a credit in our account for the balance amount. They said they will send us a check.

Grasshopper

Oct 6, 04, 2:21 pm

Oct 7, 04, 1:58 pm

Short story - my folks have 2 properties that they could potentially do this on. I, however, am the one with the large mileage balance (600K+ on American, inching closer to 1MM). Can my father do the mortgage and put the miles on my AA account? For UA, etc. it's irrelevant, but AA would be nice.

Just a thought.

I cannot say for sure, but for most offers like these the answer is technically no (unless your name also appears on the mortgage) - but in some cases complete name match is not enforced. Unless you know of some case where this actually happened you cannot count on it.

In some cases the miles do not post and you have to pursue with the company to get the miles where they may scrutinize your request. For these very large mile transactions, I'd rather be safe than sorry.

ultraman

Oct 7, 04, 4:15 pm

ultraman

Oct 7, 04, 4:18 pm

Did you get the united miles for HELOC yet?

I have not. They said to wait 6-8 weeks for posting.
The person who assigns the awards is at:
1-877-633-2200 x221 Steve (assigns awards)
He works for the 3rd party that set up the program between United and the banks. Once my miles post I will let everyone know.

I am almost ready to close my 2nd loan with Washtovia.

ultraman

Oct 7, 04, 4:24 pm

Ultraman,

My loan application is just about approved and should be closing next week. How did you pay off the loan quickly? I understand that you mailed a check before you even had the account number. Can you give me the address and let me know what you put on your check and/or if you sent a cover letter (and if so what you included). Finally, did you mail it federal express, certified mail, etc?

Thanks very much for any information. And, thanks for pointing out what I think is the best way to take advantage of this deal. My family and I should be heading to Europe when this is all over for about $150. Thanks again.

SDFLYER
:cool:

Maybe we will see you in Europe. I sent the loan payment by US mail. I used the payment address in the closing package and the loan # is there also. I paid 3 days interest or $147.54 in interest. After taxes and the interest I earned the cost for my 170,000 miles was under $100. :) :)

You are given a 3 day recission period so if you are brave you can mail the check before the money is wired to your account. I waited until my account had the funds.

hyderabad

Oct 7, 04, 6:13 pm

Did you get both on united or united and delta? I just paid off chase loan for united miles. Thinking of doing for delta. can I approach chase again or go to wachovia?

ermdjdsj

Oct 7, 04, 9:34 pm

This thread has had over 13,000 people view it. Is this a record? :)

Grasshopper

Oct 8, 04, 12:49 am

This thread has had over 13,000 people view it. Is this a record? :)

It's been mentioned on in a number of news reports. I've seen this particular thread referenced more than once. The one good thing about this particular strategy is that not TOO many people can really take advantage of it, unlike CO cards or ValueMags.

hyderabad

Oct 8, 04, 7:39 am

ultraman

Oct 8, 04, 10:00 am

Ultraman,

Did you get miles for united or delta with your 2nd HELOC?. I have paid off the loan with chase bank for united miles. Can I apply for another loan on the same property? would that be a problem?

My 2nd HELOC is with Washtovia and for United Miles. I did not see anything in the term and conditions that dis-allows more than one loan. They did ask if I would prefer to do the 2nd loan on the same property and just pay off the Chase but I had already paid for the appraisal on the rental so I kept the loan the same. The final interest rate on the rental was Prime +1/4% and if I had done my home the rate would have been Prime -1/4%

Good Luck only a little more than a month until the offer ends,

hyderabad

Oct 8, 04, 10:38 am

thanks Ultraman,

so you are getting united miles for both the loans.

ultraman

Oct 8, 04, 11:34 am

thanks Ultraman,

so you are getting united miles for both the loans.

Yes both loans (and hopefully a 3rd before 11/15) are for United miles. These will give me a good start for my goal of 1 million United miles.

hyderabad

Oct 8, 04, 12:14 pm

Thank you very much

hyderabad

Oct 8, 04, 1:26 pm

ultraman

Oct 8, 04, 3:19 pm

Ultraman,

I called Wachovia (united miles) and washington mutual (for delta miles) Both are saying that they will charge the appraisal fee and also an annual fee for keeping the line open. Chase (for united miles which I closed on Sept 27th for the same property) did not charge us anything. How are you handling this?

Chase has the best terms. For Washovia I am paying the appraisal and other fees for a total of ~$750 on a 500,000 HELOC. I figure it is worth that money for 250,000 miles.

Figure $1,000 cost (including interest) for 250,000 miles is .004 per mile.

Deltahater

Oct 18, 04, 10:03 am

ultraman

Oct 18, 04, 9:30 pm

has anybody received any miles yet?

My loan is scheduled to close next week, but I don't want to go through with it, if I don't get the miles.

Anybody gotten anything yet?

PS.. it seems they removed the bonus miles and it's now back to the normal 1,300 miles per 10,000

I received my United Miles on my Chase loan but they did not post the bonus miles. I received the 1,300 miles per $10,000 borrowed. I have a call into the person who posts the miles who is: Steve at 1-877-633-2200 x221

The bonus program is still on the United Web site until 11/15/04.

http://www.united.com/page/article/0,6722,50776,00.html

sdflyer04

Oct 20, 04, 10:34 am

Any update Ultraman? I'm closing tonight and it'd be nice to know if you got all of the miles before I bite the bullet. Thanks for any info.

SDFLYER04

ultraman

Oct 21, 04, 9:51 am

Any update Ultraman? I'm closing tonight and it'd be nice to know if you got all of the miles before I bite the bullet. Thanks for any info.

SDFLYER04

I talked to Steve at the Awards for Miles company and because the bonus changed around the time my loan closed the data received from CHASE had the wrong bonas code. He is going to give me the better bonus (5,000 miles for 10,000 borrowed) but it will take a week or two to post. I would go forward with your loan.
I should change the title of this thread to: 200,000 miles for $100. :)

luvagator

Oct 21, 04, 10:50 am

Hi Ultraman:

I am a bit lost. The link does not have chase bank as an option.

Is this deal dead ??

If not can you please PM me with some info so that I can take advantage of this offer ??

/sp

Deltahater

Oct 24, 04, 2:56 pm

ultraman

Oct 25, 04, 9:15 am

I just saw that now it says the deal has been extended to 10/15/2005

I am closing my loan this week and then will do it all again. Hopefully, I can do it with Chase again...

Chase is listed on the site as qualifying bank... :)

If anyone is able to do a 2nd loan with CHASE please let us know. I just paid off my CHASE loan and should close the WASHTOVIA loan soon. No penality for prepayment on the CHASE loan.

ultraman

Oct 29, 04, 6:04 pm

I received the loan papers for the WASHTOVIA line of credit and they did not charge any fees. It has no closing cost and no annual fees. The only cost for the loan besides the interest I will pay (3 days) will be the appraisal.

My total cost before taxes will be under $500 and I will receive 250,000 miles.

Now that the bonus has been extended to 10/15/2005 I will wait a few months and see if I can get another CHASE loan. My first loan with CHASE is paid off an no prepayment penality.

This sure beats all those gift cards. ;)

Getting closer to my Milion Mile goal.

ultraman

Nov 6, 04, 12:19 pm

I finally received the bonus miles for my Chase loan. The problem was due to the new bonus program started about the time of my loan. I was lucky and received the new bonus (5,000 miles/ 10K borrowed).

My 2nd loan funded ($500K) and I will pay it off on Monday. I should see my 250K United Miles in about 6 weeks. :cool:

Now can I do a 2nd CHASE loan?

ryanjudy

Nov 6, 04, 6:50 pm

ryanjudy

Nov 6, 04, 6:51 pm

ultraman

Nov 6, 04, 7:55 pm

Is this deal still open? I really wanted to do this but was not able to talk those that have the $500,000 equity in the home to do it :rolleyes: non flyertalkers!

Most have stated 11/15 as the end date, however UAL.com shows 10/15, and united.com/awards4mre shows regular 1,300 miles.

Awards for Mortgage & Real Estate
Dates: Home Equity Loan applications submitted between October 15, 2004 through October 15, 2005
Offer: Earn 5,000 miles for every $10,000 financed at closing (regularly 1,300 . .......

Thanks

I talked to the Awards for Mortgage and Real Estate and the offer is good to Oct 15, 2005.

http://www.united.com/page/article/0,6722,50776,00.html

This has been the cheapest and least amout of my time for maximum miles I have found on Flyertalk or Free Frequent Flyer web sites. If anyone has equity in their house it seems like a no brainer.

Calvin

Nov 8, 04, 3:47 pm

Sorry for the basic questions, but I have never done a Home Equity Loan or Line of Credit. I called to apply, and talked to the Chase rep. I started going through the process and realized she had me set up for a HELOC. The rule is that you have to draw out $25K initially, and the maximum is 90% of the LOC value. Then I got freaked out because I know I had wanted to get the entire amount in one lump sum and pay it back immediately. So then I realized it was a HEL that I should've asked for. She said the rate is something like 6.75% with closing costs and 7.25 without closing costs. Is this the same program that ultraman and others have been doing? How'd you get the 5% rate?

sindhiguy

Nov 9, 04, 11:51 am

i spoke to my accountant and he said this could show up on your credit report depening how many times and if it gets cleared of correctly or not.

ultraman

Nov 9, 04, 12:13 pm

ultraman

Nov 9, 04, 12:15 pm

i spoke to my accountant and he said this could show up on your credit report depening how many times and if it gets cleared of correctly or not.

I am sure your accountant is correct. I have applied for three loans in the last three months and my credit score has not changed. I will probably wait 6 months before doing another loan but the 700,000 United Miles was worth the risk of a slightly lower score.

Does anyone know how many credit checks it takes to lower your score?

estnet

Nov 9, 04, 3:26 pm

Well I have opened and paid off my Chase loan :) Only awaiting miles.

A small hitch for me was that they wanted more home owners insurance than my house really needed - so I may have some added cost re:increased premium - but I'm in the process of working it out with my insurance agent. Thanks again ultraman :D

RaysMD

Nov 9, 04, 6:22 pm

what's involved in the application process? i.e., what information needs to faxed to Chase?

ultraman

Nov 9, 04, 7:40 pm

what's involved in the application process? i.e., what information needs to faxed to Chase?

They will tell you what they need but for me it was:

2 years of tax returns
Declaration page of the house insurance
Last two pay stubs
Last two years of W2's
Property Tax bills for the last two years

The application takes about 45 minutes and then they send a Fed Ex loan with what copies they need. Then they schedule an appraisal which take an hour and finally they sent a Notary to our house for the final paper signing.

Loan Office at CHASE you can call: Jeremy Frase
800-324-9211 x3003

Good Luck
Ultraman

ultraman

Nov 10, 04, 5:23 pm

I just put in my application for a 2nd loan with CHASE. I told them that I had paid off the first one but my wife and I are planning a remodel and wanted to get the line of credit again (which is true). They said I could do another one for the same amount $400K and will put in for the United Miles. :)
This loan will put me over my goal of 1 million miles for 2004 YEA! ^

estnet

Nov 11, 04, 12:33 am

Did you have to close the first one b/4 you applied for the second? If so how long did it take them to close it?

ultraman

Nov 11, 04, 9:27 am

Did you have to close the first one b/4 you applied for the second? If so how long did it take them to close it?

It takes CHASE about two weeks to "close" the loan after you send in the payoff amount and a letter saying you want to close. I called and the supervisor could close it sooner. My 2nd loan was Wactovia so it has been about a month since CHASE has been closed before I applied for my 2nd one.
They will ask you why you paid off the 1st and now want an 2nd loan so have a good reason (besides miles on United :p )

Good Luck

ultraman

Nov 16, 04, 10:02 am

Some advice for those getting a HELOC from Wachovia. They take about 10 days to get your loan on the computer so rather than have the funds wired to you at close of the loan I would wait two weeks and then borrow the money. I tried to send in a check to pay off the initial draw and they returned it because the loan was not in the computer. I think my loan officer will credit me the interest but it is a hassle.

estnet

Nov 16, 04, 12:23 pm

Thanks for the info about Wachovia - with Chase they require an immediate draw of at least 25k- are W rules different?

BTW - don't you find it amusing that they can't find a way to let you pay the money back but they can still charge you interest ;) Chase also didn't have the loan "in the computer" but were able to process by check to pay it off ^

ultraman

Nov 22, 04, 1:51 pm

Has anyone done a HELOC with Wachovia? My wire transfer that happened on 11/5 did not post to my loan account until 11/22 so now I am trying to get credit for the interest charged since 11/10 when they received my payment against the loan. I think my strategy on my next loan with Wachovia will be to wait on any withdrawal from the line of credit until they have the loan in the computer.

Bidkat

Nov 23, 04, 1:16 pm

Well I have opened and paid off my Chase loan :) Only awaiting miles.

I just signed the papers on my Chase HELOC. I signed the "optional" bank wire for an initial 25K, but want to draw down the whole thing later to get more miles. I'm wondering:

1) What's a good place to park the money?
2) How long should I park it -- a few days?
3) What's the easiest way to draw/payoff -- can it be done on the web?
4) Why is it necessary to close the loan afterward? I've already paid a $75 "annual participation fee", so is there any reason not to keep it open at least a year?

Finally, I'm wondering why it's possible to get a rate (4.25%) that seems lower than many fully-indexed 1sts (variable).

Thanks -
BK

freakflyer

Nov 23, 04, 7:47 pm

I just signed the papers on my Chase HELOC. I signed the "optional" bank wire for an initial 25K, but want to draw down the whole thing later to get more miles.

But you only get the miles on the initial draw. Why didn't you take the full amount out?

ultraman

Nov 24, 04, 10:45 am

I just signed the papers on my Chase HELOC. I signed the "optional" bank wire for an initial 25K, but want to draw down the whole thing later to get more miles. I'm wondering:

1) What's a good place to park the money?
2) How long should I park it -- a few days?
3) What's the easiest way to draw/payoff -- can it be done on the web?
4) Why is it necessary to close the loan afterward? I've already paid a $75 "annual participation fee", so is there any reason not to keep it open at least a year?

Finally, I'm wondering why it's possible to get a rate (4.25%) that seems lower than many fully-indexed 1sts (variable).

Thanks -
BK

You only get the miles based upon the initial draw so taking more out will not yield you any more miles. I was not required to pay the $75 annual fee for the first year.
There is no reason you cannot keep the loan open for a year (or more). I closed mine so I could qualify for another loan and maximize the initial draw.
The only option for paying down the intial draw quickly is overnight mail (or Fed Ex) or US mail since it takes a few weeks to set up electronic transfers.
I put the money in a savings account for the three days I had it.

Bidkat

Nov 25, 04, 12:32 pm

But you only get the miles on the initial draw. Why didn't you take the full amount out?

Cause I didn't know. So now I'm screwed?

All that work for nothing . . .

ultraman

Nov 26, 04, 5:22 pm

Cause I didn't know. So now I'm screwed?

All that work for nothing . . .

Bidkat,

I would call Chase and explain that you did not understand how the miles for loan worked and that you wanted to draw the full amount for miles. Let us know if you are sucessful.

RK7

Dec 21, 04, 3:43 pm

Bump to see if anyone has received their miles doing this.

Deltahater

Dec 21, 04, 8:10 pm

I closed on my loan with Chase on 10/25. So far my miles have not yet posted, but I spoke to Steve today who was very competent, skilled, and just plain good.

He immediately sent an email of to Chase, who he claims are their best partner, and hopes that I will get my miles this week.

If so, I would be very pleased and excited about this deal... :cool:

cowtowner

Dec 21, 04, 11:10 pm

ultraman

Dec 24, 04, 3:51 pm

jan_az

Dec 24, 04, 5:36 pm

ultraman

Dec 25, 04, 6:24 pm

Just out of curiousity - what is this all doing to your FICO score?

So far my FICO score has not changed (760). Maybe if I do a 4th loan it will go down. I have also applied for 4 credit cards for miles in the last year.

xyzzy

Dec 25, 04, 6:47 pm

So far on the loans I have 450,000 points for $150. I look forward to the additional 200K point from my new Chase loan.
:)If you could do this with AA you'd be well on your way to lifetime elite status...

nsx

Jan 5, 05, 8:23 pm

My Chase HELOC is closing this week. Max initial draw is 90% of the credit limit. Anything I need to do before I sign to make sure I get the UA miles?

DCA-SEA

Jan 5, 05, 8:50 pm

I put the money in a savings account for the three days I had it.

www.ingdirect.com has savings accounts that pay 2.35%. Quick and easy to open, and they link electronically to one's checking account.

sdflyer04

Jan 6, 05, 2:33 pm

I just signed the papers for my second Chase loan (the first was closed about a month ago) for $400K. Again the Wacovia loan was not on the credit report so I did not have to pay off that line of credit ($500K). They finally adjusted my Wacovia interest charge when they charged me for interest on the payment check they returned. They gave me extra credit so for my wacovia line of credit that yielded 250,000 United points there was no cost.
So far on the loans I have 450,000 points for $150. I look forward to the additional 200K point from my new Chase loan.
:)
----------------------------------

I'm a little confused. When you say you "did not have to pay off that line of credit" what do you mean? I thought you were paying off the line of credit immediately after receiving the money from the lender (and thereby paying virtually nothing in interest). Did you mean to say that you didn't have to "close" the Wacovia loan? My other question is whether you closed your Chase loan prior to applying for the second Chase loan and if so how long did you wait to reapply. I received 250,000 miles for around $90 and I'd be delighted if they let me do it again. I am about to close my original Chase loan. How did you do your second Chase loan?

SDFLYER

ultraman

Jan 6, 05, 6:10 pm

[QUOTE=sdflyer04]----------------------------------

I'm a little confused. When you say you "did not have to pay off that line of credit" what do you mean? I thought you were paying off the line of credit immediately after receiving the money from the lender (and thereby paying virtually nothing in interest). Did you mean to say that you didn't have to "close" the Wacovia loan? My other question is whether you closed your Chase loan prior to applying for the second Chase loan and if so how long did you wait to reapply. I received 250,000 miles for around $90 and I'd be delighted if they let me do it again. I am about to close my original Chase loan. How did you do your second Chase loan?

SDFLYER[/QUOTE

After I paid down my Chase loan to a minimum I did not close until I had my United miles. I opened the new line of credit with Wachovia and they did not require me to pay off the Chase line (so I had $900K of credit at that point). I paid off Chase waited six weeks and then called them to see if I could do another line of credit. I told them (truthfully) that I wanted to do some remodeling. They said fine and did not even order a new appraisal but used the original one. That loan just closed and now I wait six weeks for the miles and pay off the Wachcovia loan.
Even if you pay the line of credit down to $0 it is still available unless you request to close it.

sdflyer04

Jan 7, 05, 2:42 pm

[QUOTE=ultraman
After I paid down my Chase loan to a minimum I did not close until I had my United miles. I opened the new line of credit with Wachovia and they did not require me to pay off the Chase line (so I had $900K of credit at that point). I paid off Chase waited six weeks and then called them to see if I could do another line of credit. I told them (truthfully) that I wanted to do some remodeling. They said fine and did not even order a new appraisal but used the original one. That loan just closed and now I wait six weeks for the miles and pay off the Wachcovia loan.
Even if you pay the line of credit down to $0 it is still available unless you request to close it.[/QUOTE]
-------------------------------------
Sorry to be dense, but I'm still confused. Did you close your Chase loan prior to applying for a new loan? I have the Chase loan and I paid it down to $0 (actually it has a credit because I paid too much the day it opened). I received the miles several weeks ago. If they let me do another loan, I'd be very, very happy. I called them a few days ago to ask for the credit back and the woman asked me if I wanted to close the line of credit. I said OK and she then told me that I need to send them a fax with the request to close. I assume that I should close the existing loan, wait 6 weeks, and then reapply. I have significant equity in my house, but at 80% loan to value ratio I don't think I'd get another $500,000.00 from them.

Thanks for any advice.

SDFLYER

ultraman

Jan 7, 05, 6:34 pm

[QUOTE=ultraman
After I paid down my Chase loan to a minimum I did not close until I had my United miles. I opened the new line of credit with Wachovia and they did not require me to pay off the Chase line (so I had $900K of credit at that point). I paid off Chase waited six weeks and then called them to see if I could do another line of credit. I told them (truthfully) that I wanted to do some remodeling. They said fine and did not even order a new appraisal but used the original one. That loan just closed and now I wait six weeks for the miles and pay off the Wachcovia loan.
Even if you pay the line of credit down to $0 it is still available unless you request to close it.
-------------------------------------
Sorry to be dense, but I'm still confused. Did you close your Chase loan prior to applying for a new loan? I have the Chase loan and I paid it down to $0 (actually it has a credit because I paid too much the day it opened). I received the miles several weeks ago. If they let me do another loan, I'd be very, very happy. I called them a few days ago to ask for the credit back and the woman asked me if I wanted to close the line of credit. I said OK and she then told me that I need to send them a fax with the request to close. I assume that I should close the existing loan, wait 6 weeks, and then reapply. I have significant equity in my house, but at 80% loan to value ratio I don't think I'd get another $500,000.00 from them.

Thanks for any advice.

SDFLYER[/QUOTE]

Yes I would send the fax and close your account.
I just received my 250,000 ;) miles from the wachovia loan today so I will pay it off and "close it" and see if they will let me do another loan in 2-3 months. Good Luck.

Deltahater

Jan 8, 05, 7:12 pm

estnet

Jan 8, 05, 8:15 pm

Wheee... got my mucho miles from Chase :D Now if UA only stays in business long enough for me to use them ;)

The loan ratio isn't 50% - I think mine was 80 or 90%.

Valentino

Jan 8, 05, 8:45 pm

I would talk to Jeremy Frase at CHASE 800-324-9211 x3003
and tell him you want the Equity line of credit with the no points, no fees at ~prime rate. He is the one who told me to draw the maximum and then pay it off to get the most miles.

The rules said "To qualify for Mileage Plus Miles, home loan products, pricing, and services, you must submit your application either here online with Washington Mutual Home Loans, CitiMortgage, Chase Home Finance or Wachovia Corporate Mortgage Services, or by phone with a home loan professional from CHASE HOME FINANCE, CITIMORTGAGE, WACHOVIA CORPORATE MORTGAGE SERVICES, or WASHINGTON MUTUAL HOME LOANS at 1-877-633-2200.*"

If I call Jeremy Frase, will I still get the UA miles. Thanks.

ultraman

Jan 9, 05, 7:08 pm

The rules said "To qualify for Mileage Plus Miles, home loan products, pricing, and services, you must submit your application either here online with Washington Mutual Home Loans, CitiMortgage, Chase Home Finance or Wachovia Corporate Mortgage Services, or by phone with a home loan professional from CHASE HOME FINANCE, CITIMORTGAGE, WACHOVIA CORPORATE MORTGAGE SERVICES, or WASHINGTON MUTUAL HOME LOANS at 1-877-633-2200.*"

If I call Jeremy Frase, will I still get the UA miles. Thanks.

Yes you will. You just need to "register" for the promotion by calling the number below and giving them the promotion and your United Plus number. Then you can call
Jeremy.

Offer: Earn 5,000 miles for every $10,000 financed at closing (regularly 1,300 miles per $10,000) on a second mortgage Home Equity Loan with Chase Home Finance or Wachovia’s Corporate Mortgage Services Division. That’s a 3,700-mile bonus.
Terms and conditions: Terms and conditions apply
Get started now: To qualify, all home loan applications must be submitted online at united.com/awards4mre or at 1-877-633-2200. Provide promo code HE3700 at the time of registration.

ultraman

Jan 9, 05, 7:12 pm

SD Flyer:

Keep in mind that these banks will only loan you 50% of your equity. ...

For both of my loans the loan to value ratio was closer to 80%.

sdflyer04

Jan 10, 05, 12:36 pm

SD Flyer:

Keep in mind that these banks will only loan you 50% of your equity. If you own $500K, you'll get a HELOC of $250K. Of that you can only take out 90% and you end up with 112K miles. Not bad at all, but it is not 250K miles. Just keep that in mind.

It is still a great deal.

my miles posted yesterday for a loan closed in late October. 115K miles for about $200 Great deal....

I'll try again next week to redo the loan...
------------------------------------------

I was told that they would go up to 80 or 90% (I can't remember which). But, the appraiser that they sent out to my house said that it was worth so much that I was well below 80% at $500K (real estate prices are ridiculous these days, but why not take advantage?).

My remaining question (for Utraman and anyone else): Would you recommend going with Wachovia for the next loan or immediately (after 6 weeks or so) going with Chase again? If I recall correctly, Wachovia had closure fees or early payoff or application fees or something that made it much more expensive than Chase. What would you do now?

SDFLYER

ultraman

Jan 10, 05, 12:41 pm

------------------------------------------

My remaining question (for Utraman and anyone else): Would you recommend going with Wachovia for the next loan or immediately (after 6 weeks or so) going with Chase again? If I recall correctly, Wachovia had closure fees or early payoff or application fees or something that made it much more expensive than Chase. What would you do now?

SDFLYER

I would go with Wachovia and give Chase more time since you closed the account. Wachovia told me that I would have to pay for closing but when I signed the papers it was free (who was I to argue). Since my Wachovia loan was on another property I did have to pay for the appraisal. You may be able to use the Chase appraisal and save some money. Good Luck.

luvagator

Jan 11, 05, 10:07 am

Hi Ultraman:

Simple questions:

I am planning on doing this: Please correct me if I am wrong.
apply for HELOC,
once approved, withdraw the whole money,
next repay the money within a day.

I should get a credit for the number of miles within 6-8 weeks

I can close the lone with one and restart with another

ultraman

Jan 11, 05, 12:04 pm

[QUOTE=luvagator]Hi Ultraman:

Simple questions:

I am planning on doing this: Please correct me if I am wrong.
apply for HELOC,

Yes

once approved, withdraw the whole money,

Yes except now Chase will only let you withdraw 90% of the line of credit.

next repay the money within a day.

Yes

I should get a credit for the number of miles within 6-8 weeks

Yes (my last loan took 9 weeks (Wachovia)

I can close the loan with one and restart with another

Yes if they will let you. I did my 2nd loan with the other loan company so that the first loan would be closed for a while before applying again.

luvagator

Jan 11, 05, 2:27 pm

Thank You Ultraman.

From your experience, Is Wachovia better or Chase ??

ultraman

Jan 11, 05, 8:28 pm

Thank You Ultraman.

From your experience, Is Wachovia better or Chase ??

I would rate them equal. Both required some follow up related to miles or incorrect interest charged. Let me know you opinion when you do both loan companies.

luvagator

Jan 12, 05, 10:12 am

I initiated my loan with Chase yesterday.

I guess I will have to close that one and then will try Wachovia in a month.

/sp

hyderabad

Jan 13, 05, 9:44 am

ultraman

Jan 13, 05, 10:23 am

Ultraman,

I closed my chase heloc last month after making sure my miles were posted. I started with Wichovia yesterday. They say, there is no closing charge or appraisal fee. I called and talked to three different people and two said that i can close the account any time without any penalty./ This morning I talked to another lady and she says that if we close it the fist year, we have to pay pay the closing cost in full and in the second year half of that. How long should I wait to get another loan from chase?

It is interesting how you get different stories from different people. I was told by Wachovia that I would have to pay closing and appraisal cost but when I closed they paid the closing costs. I just sent in my payoff and they did not charge for any of the closing.
You can call Chase anytime and try for your 2nd loan. Just have a good story why you closed the first loan and now want a 2nd one. Let us know what they say.

hyderabad

Jan 13, 05, 11:32 am

Thanks. Can I do both wachovia and chase at the same time? Wouldn't the loan be double my equity?

Daveinc2000

Jan 15, 05, 8:37 pm

Thank You Ultraman.

From your experience, Is Wachovia better or Chase ??

After learning about it here, I did a HELOC with Chase. It went very smoothly. Got 250K miles for next to nothing. Is the Wachovia bonus deal still valid?

ultraman

Jan 17, 05, 1:54 pm

After learning about it here, I did a HELOC with Chase. It went very smoothly. Got 250K miles for next to nothing. Is the Wachovia bonus deal still valid?

Yes it is. Glad to hear that another Flyer Talk member could take advantage of this program.

Awards for Mortgage & Real Estate
Dates: Home Equity Loan applications submitted between January 1, 2005 through October 15, 2005
Offer: Earn 5,000 miles for every $10,000 financed at closing (regularly 1,300 miles per $10,000) on a second mortgage Home Equity Loan with Chase Home Finance or Wachovia’s Corporate Mortgage Services Division. That’s a 3,700-mile bonus.
Terms and conditions: Terms and conditions apply
Get started now: To qualify, all home loan applications must be submitted online at united.com/awards4mre or at 1-877-633-2200. Provide promo code HE3700 at the time of registration.

Jeff Boston Gator

Jan 18, 05, 10:27 am

ultraman

Jan 18, 05, 2:56 pm

I also closed with Chase and received 240,000, free appraisal, no closing costs, and no interest charge (I wired money back the same day received).

Thanks Ultraman, the best FF deal I have ever done.

Your welcome! I tell friends about this program and they think it is to much work or to complicated. This is so much easier than the gift cards or having multiple credit cards that yield 20K or 30K miles. My wife is getting tired of signing documents but she may let me do two more loans before the October 15th deadline.

hyderabad

Jan 18, 05, 6:04 pm

Ultraman,

Can we apply for HELOC with two banks at the same time?

ultraman

Jan 19, 05, 8:46 am

Ultraman,

Can we apply for HELOC with two banks at the same time?

Hyderabad,

I don't know. In theory I would say yes but I am sure the banks would not like it since the total HELOC would be greater than the house value.

hyderabad

Jan 19, 05, 12:41 pm

Thanks. I will close wachovia first and do chase again in july/august.

DennyO

Jan 19, 05, 2:21 pm

Ultraman,

Can we apply for HELOC with two banks at the same time?

At closing, you will have to sign an affidavit saying that there are no encumbrances that have not been disclosed. You can apply for two HELOC, but if they are both approved, you can close on one. When you try to close on the second, you have to disclose the first in that affidavit so that will end it.

SST

Jan 19, 05, 2:38 pm

When it says "PROMO CODE HE3700", does that mean that if I "register" for this online, it goes into the the box labelled "RESERVATION CODE" on the form? Is that what YOU did? Or did you "register" and take care of this all by phone?

ultraman

Jan 19, 05, 3:58 pm

noracle

Jan 19, 05, 4:36 pm

HI all,

I want to do this process. But don't know what to start first.
Can someone outline the step I need to do please?

Many Thanks.
Nora

ultraman

Jan 19, 05, 5:14 pm

HI all,

I want to do this process. But don't know what to start first.
Can someone outline the step I need to do please?

Many Thanks.
Nora

Nora,

If you read the original posting it outlines the steps.
Step 1: register at http://www.united.com/page/article/0,6722,50776,00.html
Step 2: Call Jeremy Frase at Chase 800-324-9211 x3003 and apply for the Equity Line of credit
Step 3: Fund the loan with a wire transfer to your account at closing for the maximum amt.
Step 4: Mail a check to Chase to pay off all or part of the loan when there are funds in your account.
Step 5: Wait for your miles to post (8-9 weeks)
Step 6: Close the loan and apply for a HELOC with Wacovia using the same six steps.

chuckd

Jan 19, 05, 6:20 pm

I'm in school and live in an apartment, and have no plans to buy a house any time soon. But, here:
http://www.united.com/page/article/0,6722,50776,00.html
there is the deal but for home loans, not HELs. I wonder if I could do something similar with this? I have good credit, at least I did a couple months ago when I last checked. . And a 200k or so loan for a house is certainly realistic I should think. I only make 30kish a year at this point though

Also, Lending tree has 6k for loans, and although it doesn't specify school loans as being part of the deal, I am going to call them and see. I could use about $15k or so anyway this summer. Not a great many miles off of it, 9k if the deal is good, but I figure I can put school on my MP visa first, then just pay off my card with the loan, scoring an extra 15k miles.

Anyone else in a similar situation? Ideas / suggestions?

noracle

Jan 20, 05, 6:43 pm

Thank you for the detail steps. I will give it a try.

Nora

Sweet Willie

Jan 20, 05, 7:14 pm

Interesting.....any financial consultants want to take a crack at how this might affect one credit rating? to be continued
who cares? unless you are obtaining credit in the near future it is virtualy a non issue.

PremEx

Jan 20, 05, 8:11 pm

Thanks Ultraman, the best FF deal I have ever done.

And you're not even faced with what to do with tons of nasty Pudding! :)

Grasshopper

Jan 20, 05, 8:17 pm

Step 4: Mail a check to Chase to pay off all or part of the loan when there are funds in your account.

I also closed with Chase and received 240,000, free appraisal, no closing costs, and no interest charge (I wired money back the same day received).

OK, how did Jeff do this? I thought it was difficult to arrange to wire the money back ASAP... details please?

ultraman

Jan 21, 05, 2:36 pm

who cares? unless you are obtaining credit in the near future it is virtualy a non issue.

I have done four loan applications in the last year where they pulled my credit report. My credit score has not changed yet.

ultraman

Jan 21, 05, 2:38 pm

And you're not even faced with what to do with tons of nasty Pudding! :)

The pudding guy is my hero. It was because of an article about him that I heard about Flyer Talk. Between him and Gary at Free Frequent Flyer web site I would not have all these free trips coming. :)

Jeff Boston Gator

Jan 21, 05, 6:39 pm

w/r/t the Chase HELOC..

After establishing the closing date on the loan, I called Chase customer service department and asked them for wiring instructions. They gave their JP Morgan Chase Bank routing #, DDA# and I obtained my customer reference # and service # from my loan documents at closing.

I obtained the wire receipt instructions from my bank and included them on the wire transfer form that was part of my closing documents.

The day that I was expected to receive the funds, my wife went to my bank and gave them the wire instructions back to Chase. I figured that I would lose a few days interest due to posting time at Chase.

I checked on line a few days later and both transfers were posted. My month end statement showed no interest charges.

240,000 miles posted to my account a month later. Only in America.

noracle

Jan 23, 05, 6:14 am

Nora,

If you read the original posting it outlines the steps.
Step 1: register at http://www.united.com/page/article/0,6722,50776,00.html
Step 2: Call Jeremy Frase at Chase 800-324-9211 x3003 and apply for the Equity Line of credit
Step 3: Fund the loan with a wire transfer to your account at closing for the maximum amt.
Step 4: Mail a check to Chase to pay off all or part of the loan when there are funds in your account.
Step 5: Wait for your miles to post (8-9 weeks)
Step 6: Close the loan and apply for a HELOC with Wacovia using the same six steps.

Hi ultraman

Thank you for you detail step. I start it Friday. When I call Jeremy about the Equity Loan. Jeremy, he said, Chase don't do first lieu on mortgage for state of MA. They do second lieu. He suggest I get first lieu on mortgage from local bank and call him back.

I live in MA, I have no outstanding load on my house.

I call Wacovia, they only give 50% of the LOC value and charge $800 for closing cost.

Does anyone know any a bank in MA who don't charge for closing cost for HELOC?

I just want to get a small HELOC, and then call Jeremy for second HELOC.

Thanks.

Flyer Jon

Jan 31, 05, 7:48 am

I just received a call from Wachovia, confirming all paper work is in order to close on a line of credit. I was hit with the following:

1. They will only overnight mail a check. Interest accrues as soon as they cut it - not a big deal.

2. We have to use a closing agent (State of MA requirement?).

3. There are closing costs of $275. Not sure if I have to also pay closing agent? I suppose it's not a bad price for 200K in miles.

4 At the beginning of the process, I asked both Miles for Mortgages and Wachovia whether there was any early payment penalty and could I pay back immediately. I was told no early payment, yes I can pay back anytime. Now I learn that I will have to wait to my account is set up which could take up to the first statement.

Has anyone experienced closing with Wachovia in Massachusetts? Is it normal that lenders take 30 days before they can set up an account?

Your advice will be very welcome.

Grasshopper

Jan 31, 05, 8:49 am

FlyerJon -

not sure about the specifics in Massachusetts - however, you might try this: since interest doesn't accrue until you draw the money, how about waiting until the "account" is all set up - then you can draw the cash and deposit it without having to wait 30 days for "account setup". 30 days of interest would definitely raise the costs of this deal.

Since it's a line of credit, you can set up the line without accessing it. Make sure all the t's are crossed and the i's dotted before you start racking up interest charges.

And I'm surprised they won't wire you the $. Maybe try the old "call-another-agent-and-see" trick?

- Sameer

Flyer Jon

Jan 31, 05, 12:31 pm

FlyerJon -

not sure about the specifics in Massachusetts - however, you might try this: since interest doesn't accrue until you draw the money, how about waiting until the "account" is all set up - then you can draw the cash and deposit it without having to wait 30 days for "account setup". 30 days of interest would definitely raise the costs of this deal.

- Sameer

Thanks for the response Sameer.

Normally that would work fine. In this case, if I understand the process, the mileage award is based on the amount taken at closing. If I wait until the account is set up properly, then I lose out on the mileage altogether. Earning the miles is the priority, the line of credit is not.
FJ

ultraman

Jan 31, 05, 12:38 pm

Thanks for the response Sameer.

Normally that would work fine. In this case, if I understand the process, the mileage award is based on the amount taken at closing. If I wait until the account is set up properly, then I lose out on the mileage altogether. Earning the miles is the priority, the line of credit is not.
FJ

Flyer Jon,

I would call the award for travel and ask about how the points are calculated. They say that the points are giving based upon the "initial draw" - does that mean at closing or your first draw (in your case 30 days after closing). Let us know what they say.
I had my money wired and sent a check and my loan was on the computer at their end about 4 days after the funds were wired. They did not charge closing even thou they said I would have to pay for them.

Flyer Jon

Jan 31, 05, 3:20 pm

Flyer Jon,

I would call the award for travel and ask about how the points are calculated. They say that the points are giving based upon the "initial draw" - does that mean at closing or your first draw (in your case 30 days after closing). Let us know what they say.

I called Awards number. They confirmed that the miles will be calculated on the amount I request at closing. If I take no miles at closing -- there will be no award. Is this just Wachovia's program?

I have to decide whether it's worth taking the full amount for a month. It will cost around $1750 in interest. I will receive tax relief. I would then have to find a good interest bearing parking place for the funds while I'm waiting to pay back (pay tax on the interest). The miles are earmarked for a first class award to Oz, so $1750 may be a very good price -- I'd just prefer not to have to pay it!
FJ

nsx

Jan 31, 05, 3:34 pm

I realize that ignorance may be bliss, but home equity loan interest is not deductible to the extent that the loan exceeds $100k, and it's not deductible at all when computing the Alternative Minimum Tax (form 6251). Your Form 1098 from the lender doesn't distinguish between home equity and home purchase interest, but your IRS auditor will know the difference if you get audited.

Flyer Jon

Feb 2, 05, 12:09 pm

ultraman

Feb 2, 05, 3:57 pm

A Wachovia update.....

I now learn that the loan account setup will take 3 - 5 business days. They say there will be no problem re-paying the loan as soon as account is ready. That's a lot better than 30 days!

My Wachovia contact also confirmed that the account has been flagged to receive miles. Awards for Mortgages confirmed that I am set up to receive 5000 miles per $10K.

Flyer Jon,

That sound just like my loan. I paid three days interest $205 for my 250,000 miles. Very sweet. I just closed my Wachovia loan and the agent asked if I wanted to do another line of credit. I said not now but I will call back in a month (my wife is tired of signing papers so we are taking a 3 month break :) )

100,000miler

Feb 5, 05, 3:03 pm

Are there any similar deals in Canada? Not necessarily for Aeroplan points but also United? Perhaps through credit cards which permit transfer of points to miles???

noracle

Feb 6, 05, 6:10 am

Flyer Jon,

That sound just like my loan. I paid three days interest $205 for my 250,000 miles. Very sweet. I just closed my Wachovia loan and the agent asked if I wanted to do another line of credit. I said not now but I will call back in a month (my wife is tired of signing papers so we are taking a 3 month break :) )

Do you have to paid for closing fee? The Wachovia load agent said I need to pay $800 close fee if I want the miles. I live in MASS. Do you have the load agent name and the phone number?

Thanks!
Nora

ultraman

Feb 7, 05, 12:38 pm

Do you have to paid for closing fee? The Wachovia load agent said I need to pay $800 close fee if I want the miles. I live in MASS. Do you have the load agent name and the phone number?

Thanks!
Nora

Nora,

When I applied the loan agent said that I had to pay closing but when the papers arrived they said that closing was paid for by the lender. It was worth the miles either way for me but a nice bonus to get 250K miles for $300 appraisal only.

Good Luck

JudyJFLA

Feb 7, 05, 1:42 pm

The pudding guy is my hero. It was because of an article about him that I heard about Flyer Talk. Between him and Gary at Free Frequent Flyer web site I would not have all these free trips coming. :)

Same here! We were stuck in the land of 1 mile per dollar until FT came into my life.... I missed out on the pudding, but I am still eating a freezer full of Eggo Waffles!! The coupons still say 12/05, but I no longer see any in the store with the certs, but then again, can I stand to look at many more??
YES!!

JudyJFLA

Longing for the great promos past...

cruisr

Feb 9, 05, 6:29 pm

Well the notary just left the house and the 400K HELOC will be transfered by wire into my bank by Friday. I'm looking forward to the 200K UA miles. No closing costs, appraisal costs or anything. It will just be the interest for a few days. My husband still couldn't believe the whole thing is legit but the notary said she has done several of these loans and the people all said they were doing it for the FF miles.

We used UA FF last year and got 3 free business class tickets to Australia for Xmas & New Years. Love those free trips.

Cheers

Flyer Jon

Feb 9, 05, 10:41 pm

Do you have to paid for closing fee? The Wachovia load agent said I need to pay $800 close fee if I want the miles. I live in MASS. Do you have the load agent name and the phone number?

Thanks!
Nora

There are many good things about MA, unfortunately, closing a loan with an out-of-state institution is not one of them! While I don't have to pay closing costs, I do have to pay for the services of a closing agent (MA law, so they tell me). I estimate my total costs will be around $700 to $800 -- interest and closing agent. For me, it's still a great deal. Wachovia set you up with the agent. I'm closing next week at a relatively convenient location.

ngupta

Feb 10, 05, 3:32 am

cruisr

Feb 10, 05, 12:10 pm

Hi ngupta,

When the notary came to my home last night to close (They come to you in NJ, and again no costs) she had the wire transfer form that I completed. Yes it was with Chase. They are the easiest. The interest starts when it hits my account. I'm going to basically keep it for a few days to make sure there are no glitches with availabilty of the funds and then I am going to wire it back to them.

Good luck

beachfan

Feb 10, 05, 8:54 pm

Nora,

If you read the original posting it outlines the steps.
Step 1: register at http://www.united.com/page/article/0,6722,50776,00.html
Step 2: Call Jeremy Frase at Chase 800-324-9211 x3003 and apply for the Equity Line of credit
Step 3: Fund the loan with a wire transfer to your account at closing for the maximum amt.
Step 4: Mail a check to Chase to pay off all or part of the loan when there are funds in your account.
Step 5: Wait for your miles to post (8-9 weeks)
Step 6: Close the loan and apply for a HELOC with Wacovia using the same six steps.

Wow, I just discovered this post.

When I go to the url at step one, I don't see a box to register. I click on a link, get a registration form, but the only possible box to enter HE3700 is the "reservation code" box. Is that the right one?

ultraman

Feb 10, 05, 9:07 pm

Wow, I just discovered this post.

When I go to the url at step one, I don't see a box to register. I click on a link, get a registration form, but the only possible box to enter HE3700 is the "reservation code" box. Is that the right one?

I recommend that you call to register rather than try on-line. It is good to see many Flyer Talk patrons getting the miles for this program. :)

luvagator

Feb 10, 05, 9:22 pm

Did any of you change the insurance binder to include CHASE bank ??
or
you ignored that request as you were paying off the loan within a day or two !!

I am having my closing on Wednesday. I was told that I cannot wire the money back to chase but will have to mail a check. How did you get chase's wire info ?

/sp

luvagator

Feb 10, 05, 9:29 pm

There are many good things about MA, unfortunately, closing a loan with an out-of-state institution is not one of them! While I don't have to pay closing costs, I do have to pay for the services of a closing agent (MA law, so they tell me). I estimate my total costs will be around $700 to $800 -- interest and closing agent. For me, it's still a great deal. Wachovia set you up with the agent. I'm closing next week at a relatively convenient location.

Flyer Jon.....

I live in MA, I was told that there is no closing costs. Did you have your closing ? Did you have to pay $700 - $800 or are you just assuming the cost ??

My closing is on Wednesday. I can keep you posted on how it goes.

estnet

Feb 10, 05, 10:45 pm

I called and got a physical address to fed-ex the check. Figured it was worth the extra $15 ;)

Flyer Jon

Feb 11, 05, 11:14 am

Flyer Jon.....

I live in MA, I was told that there is no closing costs. Did you have your closing ? Did you have to pay $700 - $800 or are you just assuming the cost ??

My closing is on Wednesday. I can keep you posted on how it goes.

luvagator

I was told by Wachovia that I have to pay $275 for the services of a closing agent. Other than that, no further closing costs. I am allowing up to $500 for interest charges if I have to wait the full week.

Are you closing with Wachovia? Do you have to use a closing agent? My closing is scheduled for Friday, so will look for your comments. Thanks

FJ

luvagator

Feb 11, 05, 2:45 pm

luvagator

I was told by Wachovia that I have to pay $275 for the services of a closing agent. Other than that, no further closing costs. I am allowing up to $500 for interest charges if I have to wait the full week.

Are you closing with Wachovia? Do you have to use a closing agent? My closing is scheduled for Friday, so will look for your comments. Thanks

FJ

Nope. My loan is with CHASE.
Once I close this next week, I am planning on trying out Wachovia next ;-)

Did you have to get the insurance binder with Wachovia's name on it ?

noracle

Feb 12, 05, 6:59 am

ultraman,
I received a load paper with Wachovia, he fax the loan paper to me instead mail. The only thing I need to paid for is lawyer fee $275. No closing cost.
I can fax the loan paper back to him.

ultraman you mention on early post, I have some question:
--I should wait till the account setup in computer before I did my initial draw?
--When I paid off the load with Wachovia, Should I close the account? You mention Wachovia require to have account open for two year?

Thanks,
Nora