How to weigh your bank’s mortgage offers — and why you get so many

Mortgage offers are overwhelming bank inboxes, often promising lower closing costs and reduced interest rates. However, not everyone qualifies for the best deals, and even those who do may not save much money. Chase offers a full percentage point off mortgage rates for borrowers who deposit at least $500,000 and move $1.5 million in new deposits or investments into the bank. While Chase offers a significant discount, the amount saved may not be worth the tie-up of funds for some borrowers.

Bankrate's recent research reveals that 87% of borrowers choose a more expensive mortgage than necessary, costing the average borrower an extra $3,343 annually and $78,186 over the loan term. Banks use mortgage offers to attract affluent customers and gather deposits for loan generation. The discounts offered by big banks vary, with some requiring larger deposits to unlock the full benefits.

When considering mortgage offers, it is essential to shop around and evaluate the actual savings compared to the prevailing market rates. Always read the fine print, and avoid being swayed by urgency marketing tactics. Some banks offer incentives for lower- and middle-income borrowers, while others may negotiate beyond their marketing messages to retain customers.