Relationship mortgage discounts for moving a million assets

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bwilligy
Posts: 4
Joined: Sun Jun 27, 2021 3:32 am

Re: Relationship mortgage discounts for moving a million assets

Post by bwilligy »

Just got a competitive jumbo loan quote from my mortgage broker for Goldman Sachs which had relationship discounts kicking in at $250k and $500k. Has anyone had experience with Goldman Sachs? Curious about:
  • The experience with them on the mortgage side...I don't think I'd heard of them doing retail mortgages before.
  • The experience moving over assets to them and their brokerage platform. I'd have to move a bunch of my existing taxable and retirement accounts from Vanguard and Fidelity to qualify, so curious what the experience of their platform is like.
Count of Notre Dame
Posts: 447
Joined: Fri Oct 11, 2013 1:08 pm

Re: Relationship mortgage discounts for moving a million assets

Post by Count of Notre Dame »

xerxes101 wrote: Fri Aug 13, 2021 7:44 pm B of A quoted me jumbo 10/6m interest only ARM at 2.375% with 25% down
Schwab comes in at 2.625% for the same type of loan
Is anyone getting a better rate for an interest onlY 10/6m ARM?
Thx
Did BofA offer you AUM discount pricing as well? How much off the rate for $250k in assets?
rookie_investor1
Posts: 93
Joined: Mon Aug 16, 2021 8:01 pm

Re: Relationship mortgage discounts for moving a million assets

Post by rookie_investor1 »

bogey44 wrote: Thu Sep 02, 2021 4:20 pm Closed with WF recently on a purchase at 2.125% after 0.5% discount and 20% down in SoCal. Was nervous because I’ve heard some not so great things about WF, but the process was pretty smooth and my loan officer was awesome. I did get fully underwritten before our offer was accepted, so that helped.
so you got underwriter approval before making an offer ?
what I was told is, underwriter approval expires when your credit check expires (4months), so does it really help with underwriter approval especially when you have no idea if or when your offer will really get accepted.
bogey44
Posts: 4
Joined: Thu Jul 22, 2021 10:43 pm

Re: Relationship mortgage discounts for moving a million assets

Post by bogey44 »

rookie_investor1 wrote: Mon Sep 13, 2021 5:40 pm
bogey44 wrote: Thu Sep 02, 2021 4:20 pm Closed with WF recently on a purchase at 2.125% after 0.5% discount and 20% down in SoCal. Was nervous because I’ve heard some not so great things about WF, but the process was pretty smooth and my loan officer was awesome. I did get fully underwritten before our offer was accepted, so that helped.
so you got underwriter approval before making an offer ?
what I was told is, underwriter approval expires when your credit check expires (4months), so does it really help with underwriter approval especially when you have no idea if or when your offer will really get accepted.
Yep we got the underwritten pre-approval not too long before we made the offer. I didn’t ask how long it was good for, but I’m sure it does expire at some point. After our offer was accepted, we got the appraisal and commitment letter from WF within a week. The only thing that took a bit longer was transferring over the assets and having them verified/approved to qualify for the mortgage discount. In their disclosures for the discount it mentions the transfer needs to be done at least 10 business days before your closing date in order to verify the assets. So once your offer is accepted, I recommend getting started on the asset transfer right away.
rookie_investor1
Posts: 93
Joined: Mon Aug 16, 2021 8:01 pm

Re: Relationship mortgage discounts for moving a million assets

Post by rookie_investor1 »

bogey44 wrote: Tue Sep 14, 2021 4:57 pm
rookie_investor1 wrote: Mon Sep 13, 2021 5:40 pm
bogey44 wrote: Thu Sep 02, 2021 4:20 pm Closed with WF recently on a purchase at 2.125% after 0.5% discount and 20% down in SoCal. Was nervous because I’ve heard some not so great things about WF, but the process was pretty smooth and my loan officer was awesome. I did get fully underwritten before our offer was accepted, so that helped.
so you got underwriter approval before making an offer ?
what I was told is, underwriter approval expires when your credit check expires (4months), so does it really help with underwriter approval especially when you have no idea if or when your offer will really get accepted.
Yep we got the underwritten pre-approval not too long before we made the offer. I didn’t ask how long it was good for, but I’m sure it does expire at some point. After our offer was accepted, we got the appraisal and commitment letter from WF within a week. The only thing that took a bit longer was transferring over the assets and having them verified/approved to qualify for the mortgage discount. In their disclosures for the discount it mentions the transfer needs to be done at least 10 business days before your closing date in order to verify the assets. So once your offer is accepted, I recommend getting started on the asset transfer right away.
Thanks. Do you plan to move the funds out of WF ? Their promotion says nothing about keeping the funds after the closing
Also do you mind sharing closing costs? I got an estimate with initial costs of $13K (not including discounted rate), so I am worried we are essentially buying points in a way
bogey44
Posts: 4
Joined: Thu Jul 22, 2021 10:43 pm

Re: Relationship mortgage discounts for moving a million assets

Post by bogey44 »

rookie_investor1 wrote: Wed Sep 15, 2021 9:27 am
bogey44 wrote: Tue Sep 14, 2021 4:57 pm
rookie_investor1 wrote: Mon Sep 13, 2021 5:40 pm
bogey44 wrote: Thu Sep 02, 2021 4:20 pm Closed with WF recently on a purchase at 2.125% after 0.5% discount and 20% down in SoCal. Was nervous because I’ve heard some not so great things about WF, but the process was pretty smooth and my loan officer was awesome. I did get fully underwritten before our offer was accepted, so that helped.
so you got underwriter approval before making an offer ?
what I was told is, underwriter approval expires when your credit check expires (4months), so does it really help with underwriter approval especially when you have no idea if or when your offer will really get accepted.
Yep we got the underwritten pre-approval not too long before we made the offer. I didn’t ask how long it was good for, but I’m sure it does expire at some point. After our offer was accepted, we got the appraisal and commitment letter from WF within a week. The only thing that took a bit longer was transferring over the assets and having them verified/approved to qualify for the mortgage discount. In their disclosures for the discount it mentions the transfer needs to be done at least 10 business days before your closing date in order to verify the assets. So once your offer is accepted, I recommend getting started on the asset transfer right away.
Thanks. Do you plan to move the funds out of WF ? Their promotion says nothing about keeping the funds after the closing
Also do you mind sharing closing costs? I got an estimate with initial costs of $13K (not including discounted rate), so I am worried we are essentially buying points in a way
Yeah I’m moving the assets out as I’m not a fan of WF’s trading platform. After you’ve closed, your rate is set. Also doesn’t hurt that some brokerages will give you a decent bonus for moving your assets there.

As for the closing costs, our initial loan estimate was around your number. The actual closing costs ended up being around $4k lower. The main difference is their estimate for the lender’s title policy was around twice what the actual cost was. And their loan estimate assumed that I was paying for the owner’s title policy, but I believe in SoCal the seller usually pays for that. Those two items accounted for roughly $4k difference between the estimate vs actual. In our contract, the seller chose the escrow and title companies, so the main variables as far as closing costs go between lenders would have been the A + B sections (origination charges and appraisal). It was around $1600 for origination/processing and $700 for appraisal.
rookie_investor1
Posts: 93
Joined: Mon Aug 16, 2021 8:01 pm

Re: Relationship mortgage discounts for moving a million assets

Post by rookie_investor1 »

bogey44 wrote: Wed Sep 15, 2021 12:10 pm
rookie_investor1 wrote: Wed Sep 15, 2021 9:27 am
bogey44 wrote: Tue Sep 14, 2021 4:57 pm
rookie_investor1 wrote: Mon Sep 13, 2021 5:40 pm
bogey44 wrote: Thu Sep 02, 2021 4:20 pm Closed with WF recently on a purchase at 2.125% after 0.5% discount and 20% down in SoCal. Was nervous because I’ve heard some not so great things about WF, but the process was pretty smooth and my loan officer was awesome. I did get fully underwritten before our offer was accepted, so that helped.
so you got underwriter approval before making an offer ?
what I was told is, underwriter approval expires when your credit check expires (4months), so does it really help with underwriter approval especially when you have no idea if or when your offer will really get accepted.
Yep we got the underwritten pre-approval not too long before we made the offer. I didn’t ask how long it was good for, but I’m sure it does expire at some point. After our offer was accepted, we got the appraisal and commitment letter from WF within a week. The only thing that took a bit longer was transferring over the assets and having them verified/approved to qualify for the mortgage discount. In their disclosures for the discount it mentions the transfer needs to be done at least 10 business days before your closing date in order to verify the assets. So once your offer is accepted, I recommend getting started on the asset transfer right away.
Thanks. Do you plan to move the funds out of WF ? Their promotion says nothing about keeping the funds after the closing
Also do you mind sharing closing costs? I got an estimate with initial costs of $13K (not including discounted rate), so I am worried we are essentially buying points in a way
Yeah I’m moving the assets out as I’m not a fan of WF’s trading platform. After you’ve closed, your rate is set. Also doesn’t hurt that some brokerages will give you a decent bonus for moving your assets there.

As for the closing costs, our initial loan estimate was around your number. The actual closing costs ended up being around $4k lower. The main difference is their estimate for the lender’s title policy was around twice what the actual cost was. And their loan estimate assumed that I was paying for the owner’s title policy, but I believe in SoCal the seller usually pays for that. Those two items accounted for roughly $4k difference between the estimate vs actual. In our contract, the seller chose the escrow and title companies, so the main variables as far as closing costs go between lenders would have been the A + B sections (origination charges and appraisal). It was around $1600 for origination/processing and $700 for appraisal.
Thanks a lot for sharing, yes I do see similar ridiculously high estimates. They certainly are too high and I do not think compared to small lenders or Better/LenderFi, gap can be closed. so in a way, for sure we are paying some premium to get a discount. I am still hesitant to submit a loan application coz of such high closing costs:

Also, did you get an option to opt OUT of Escrow with same rate ? I asked the WF agent and I did not get any response, I assume they would want an escrow so they get more funds every month.

30yr
2.875%
Processing
$1,550
Tax Service
$80
City Tax Stamp Deed
$4,043
Record Deed
$18
Record Mortgage/DOT
$118
Appraisal Fee
$895
Credit Report
$17
Title-Closing/Escrow
$3,000
Title-Courier
$100
Title-Lender's Policy
$3,347
Title-Loan Tie In
$200
Credit for Interest Rate
($5,625)
bogey44
Posts: 4
Joined: Thu Jul 22, 2021 10:43 pm

Re: Relationship mortgage discounts for moving a million assets

Post by bogey44 »

rookie_investor1 wrote: Wed Sep 15, 2021 7:43 pm Thanks a lot for sharing, yes I do see similar ridiculously high estimates. They certainly are too high and I do not think compared to small lenders or Better/LenderFi, gap can be closed. so in a way, for sure we are paying some premium to get a discount. I am still hesitant to submit a loan application coz of such high closing costs:

Also, did you get an option to opt OUT of Escrow with same rate ? I asked the WF agent and I did not get any response, I assume they would want an escrow so they get more funds every month.

30yr
2.875%
Processing
$1,550
Tax Service
$80
City Tax Stamp Deed
$4,043
Record Deed
$18
Record Mortgage/DOT
$118
Appraisal Fee
$895
Credit Report
$17
Title-Closing/Escrow
$3,000
Title-Courier
$100
Title-Lender's Policy
$3,347
Title-Loan Tie In
$200
Credit for Interest Rate
($5,625)

You'll only end up paying the actual costs for the lender's title policy and other title/escrow costs, so I wouldn't worry too much if the estimate is high on those. If you have other lenders offering better terms (lower or no origination costs and/or lower rate), you can take that loan estimate to WF and ask them to match or beat it. Worst thing they can say is no, but for me they matched the lower rate and offered a credit on top which helped with the origination fee.

I don't have escrow for the property tax. My understanding is in California escrow isn't required as long as you put 20% down.
Count of Notre Dame
Posts: 447
Joined: Fri Oct 11, 2013 1:08 pm

Re: Relationship mortgage discounts for moving a million assets

Post by Count of Notre Dame »

Anyone know when I can start the application / appraisal process if I can't close / provide bank statements (I'm trying to "season" gift money) for two months? I really want to lock a rate with BofA but not sure how long they will do it for, and in the meantime I won't have two months of bank statements to provide until mid November.
xerxes101
Posts: 534
Joined: Sat Oct 14, 2017 11:25 am

Re: Relationship mortgage discounts for moving a million assets

Post by xerxes101 »

Count of Notre Dame wrote: Sat Sep 18, 2021 3:27 pm Anyone know when I can start the application / appraisal process if I can't close / provide bank statements (I'm trying to "season" gift money) for two months? I really want to lock a rate with BofA but not sure how long they will do it for, and in the meantime I won't have two months of bank statements to provide until mid November.
I do not believe you can lock for that long. Your lock will expire...but you should call B of A to be sure.
downtownrb
Posts: 23
Joined: Tue Oct 25, 2016 12:13 pm

Re: Relationship mortgage discounts for moving a million assets

Post by downtownrb »

I was at BoA yesterday asking about jumbo mortgages. They gave me the option to lock the rate for 1/8 a point up to 12 months out. A lock under 90 days was free.

$800k purchase, 20% down, $640k mortgage. DTI max for jumbo with 20% down was 43%.

2.125 % for 7/6 AM
2.375% for 10/6 ARM
2.75% for 30 year fixed

Add 1/8 to rate to lock for more than 90 days out. So 7/6 was 2.25%, 10/6 was 2.5%, and 30 year fixed was 2.875%. There was also an upfront 1/2 point fee to rate lock but this fee is credited back at closing.

Add 1/8 point one time ($800) to waive escrow.

Usual move $250k and get 1/8 off rate and $500k for 1/4 off rate.
Last edited by downtownrb on Tue Sep 21, 2021 12:56 pm, edited 1 time in total.
Count of Notre Dame
Posts: 447
Joined: Fri Oct 11, 2013 1:08 pm

Re: Relationship mortgage discounts for moving a million assets

Post by Count of Notre Dame »

downtownrb wrote: Tue Sep 21, 2021 6:59 am I was at BoA yesterday asking about jumbo mortgages. They gave me the option to lock the rate for 1/8 a point up to 12 months out. A lock under 90 days was free.

$800k purchase, 20% down, $640k mortgage. DTI max for jumbo with 20% down was 43%.

2.125 % for 7/6 AM
2.375% for 10/6 ARM
2.75% for 30 year fixed

Add 1/8 to rate to lock for more than 90 days out. So 7/6 was 2.25%, 10/6 was 2.5%, and 30 year fixed was 2.875%.

Add 1/8 point one time ($800) to waive escrow.

Usual move $250k and get 1/8 off rate and $500k for 1/4 off rate.
Was wondering about rate locks myself! Do you have to fill out all the paperwork in order to lock?

Thanks for the information, this is consistent with what I've seen.
downtownrb
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Joined: Tue Oct 25, 2016 12:13 pm

Re: Relationship mortgage discounts for moving a million assets

Post by downtownrb »

Count of Notre Dame wrote: Tue Sep 21, 2021 11:26 am
Was wondering about rate locks myself! Do you have to fill out all the paperwork in order to lock?

Thanks for the information, this is consistent with what I've seen.
Yes, there is some fee to also rate lock and paperwork. I did not do it myself so I am not sure of the specifics. I think he said it is a 1/2 point fee but that was credited back at closing. They wanted to make sure you didn't rate lock and then go with another bank.
downtownrb
Posts: 23
Joined: Tue Oct 25, 2016 12:13 pm

Re: Relationship mortgage discounts for moving a million assets

Post by downtownrb »

Does anyone know if moving an HSA to Bank of America counts towards the $250k transfer of new money for the 1/8 discount?

I would read their terms as "yes", the HSA would be a personal B of A account, but wasn't sure if anyone knew from personal experience if the HSA account counts or not?

Term Language:
Interest rate reductions are available for clients who transfer at least $250,000 after mortgage application into one or more qualifying personal Bank of America account(s), Bank of America Private Bank account(s) or Merrill investment account(s).
xerxes101
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Joined: Sat Oct 14, 2017 11:25 am

Re: Relationship mortgage discounts for moving a million assets

Post by xerxes101 »

B of A tells me that they have a different criteria for qualifying individuals for the 10/1 ARM interest only as opposed to a regular 30 year fixed mortgage.

During the mortgage prequalification phase, I was told when you go for a 10/1 ARIM interest only, for the purpose of the debt to income ratio, the lender does not just consider the interest payment, they add the principal as if the mortgage was a 30 year. This I understand completely and I think it is a fair practice to prevent over-leveraging by home buyers. But now they are telling me that above and beyond that they have stricter criteria for 10/1 interest only mortgages. Does anyone know what that is exactly? I find this to be confusing.
Semantics
Posts: 352
Joined: Tue Mar 10, 2020 1:42 pm

Re: Relationship mortgage discounts for moving a million assets

Post by Semantics »

Anyone here working with First Republic on a Jumbo interest only? Talked to someone there a while ago and they were pretty gung ho about giving me a very quick pre-approval, and pushed me toward an IO loan, which makes a lot of sense for my circumstance (chunk of NW in non-liquid startup equity), but I'm not sold on them because their rates seem significantly worse and I have no interest in using their wealth management offering given the fees.

From what I'm reading in this thread it seems like Schwab has much more competitive rates on ARM, both IO and amortized, and I already have a lot of assets there and like their brokerage/PAL offerings. I've also been very pleased at how easy it is to negotiate with them. If First Republic can match them, I'd consider them though, just because they seem sympathetic to my startup equity (it's probably one of the less risky startups out there). I'd love to know if anyone has evaluated them both.

Does my take match what y'all have seen?
Topic Author
softwaregeek
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Joined: Wed May 08, 2019 8:59 pm

Re: Relationship mortgage discounts for moving a million assets

Post by softwaregeek »

Semantics wrote: Fri Oct 01, 2021 9:06 pm Anyone here working with First Republic on a Jumbo interest only? Talked to someone there a while ago and they were pretty gung ho about giving me a very quick pre-approval, and pushed me toward an IO loan, which makes a lot of sense for my circumstance (chunk of NW in non-liquid startup equity), but I'm not sold on them because their rates seem significantly worse and I have no interest in using their wealth management offering given the fees.

From what I'm reading in this thread it seems like Schwab has much more competitive rates on ARM, both IO and amortized, and I already have a lot of assets there and like their brokerage/PAL offerings. I've also been very pleased at how easy it is to negotiate with them. If First Republic can match them, I'd consider them though, just because they seem sympathetic to my startup equity (it's probably one of the less risky startups out there). I'd love to know if anyone has evaluated them both.

Does my take match what y'all have seen?
Yes, also check Citi for ARM, that is their strength.
evoila
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Re: Relationship mortgage discounts for moving a million assets

Post by evoila »

Bank of West has an additional $3M tier. A super jumbo 30 year fixed is at 2.375% right now with no points. Merrill also has a great IO floating product. This is what I currently have. It's at 1.5% IO, floats monthly based off LIBOR. First Republic has good rates, and the positive with them is if you are getting up there in age you don't need to do a colonoscopy, you can kill two birds with one stone and just ask them for a loan and they'll throw one in.
Count of Notre Dame
Posts: 447
Joined: Fri Oct 11, 2013 1:08 pm

Re: Relationship mortgage discounts for moving a million assets

Post by Count of Notre Dame »

xerxes101 wrote: Sat Sep 25, 2021 3:44 pm B of A tells me that they have a different criteria for qualifying individuals for the 10/1 ARM interest only as opposed to a regular 30 year fixed mortgage.

During the mortgage prequalification phase, I was told when you go for a 10/1 ARIM interest only, for the purpose of the debt to income ratio, the lender does not just consider the interest payment, they add the principal as if the mortgage was a 30 year. This I understand completely and I think it is a fair practice to prevent over-leveraging by home buyers. But now they are telling me that above and beyond that they have stricter criteria for 10/1 interest only mortgages. Does anyone know what that is exactly? I find this to be confusing.
There's a few requirements, a certain LTV %, a certain perentage of "liquid" assets (aka taxable brokerage, cash and IRAs) of your home value - for me they said I need $220k liquidity for a $1.6M I/O loan. Debt to income we easily meet as we make about $700k per year combined.
sfbayguy
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Joined: Sun Oct 10, 2021 12:29 pm

Re: Relationship mortgage discounts for moving a million assets

Post by sfbayguy »

CAorTX wrote: Fri Jun 11, 2021 10:19 pm
jimjam600 wrote: Fri Jun 11, 2021 6:21 pm Does anyone have a good loan officer at Bank of America and/or Wells Fargo in the Bay Area (East Bay-ideally, but doesn't matter) that they'd be willing to share? And who could work fast?

Thank you very much.
I have been happy with both my Wells Fargo (used for original purchase) and my BoA contacts (now using for the 2nd) time... both bay area (Santa Clara/Fremont) happy to provide if you still need contacts, DM me if so.
Hi CAorTX can you PM the details of your contact at BoA and WF
Thanks
egilmore
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Joined: Sat Oct 22, 2016 2:26 pm

Re: Relationship mortgage discounts for moving a million assets

Post by egilmore »

sfbayguy wrote: Sun Oct 10, 2021 12:37 pm
CAorTX wrote: Fri Jun 11, 2021 10:19 pm
jimjam600 wrote: Fri Jun 11, 2021 6:21 pm Does anyone have a good loan officer at Bank of America and/or Wells Fargo in the Bay Area (East Bay-ideally, but doesn't matter) that they'd be willing to share? And who could work fast?

Thank you very much.
I have been happy with both my Wells Fargo (used for original purchase) and my BoA contacts (now using for the 2nd) time... both bay area (Santa Clara/Fremont) happy to provide if you still need contacts, DM me if so.
Hi CAorTX can you PM the details of your contact at BoA and WF
Thanks
Hi CAorTX, I'd like to get your BoA and WF contact as well. PM wasn't enabled for me :? Thanks a bunch!
xerxes101
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Re: Relationship mortgage discounts for moving a million assets

Post by xerxes101 »

Does anyone know what debt to income ratio do banks like B of A, Chase, or WF require to qualify a person for a 10/1 interest only jumbo loan? I already have a 30 year fixed and am thinking going 10/1 ARM interest only route because I do not believe we will be staying in the house for that long and :idea: I feel more in charge of what to do with the cash flow with 10/1 interest only. Is it a more stringent qualification? Thx :beer
Count of Notre Dame
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Re: Relationship mortgage discounts for moving a million assets

Post by Count of Notre Dame »

Anyone know if rates are holding? I've got a couple of weeks before I can apply for my refinance.
BigLaw Survivor
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Re: Relationship mortgage discounts for moving a million assets

Post by BigLaw Survivor »

I haven't read this entire thread but thought I'd share my recent experience.

I have about $5.5 million in Schwab, brokerage and retirement accounts combined, and I've been retired for six years. A couple of months ago (July/August) they set me up with two refinances through Rocket Mortgage/Quicken Loans.

The first was a 7/1 ARM refi of my primary residence, a $725k mortgage, at 1.7 percent without zero (and I mean zero) fees and closing costs.

The second was a 7/1 refi of an investment property at 1.875 percent with some fees and costs they couldn't or wouldn't waive -- but c'mon, 1.875 percent for an investment property is pretty darn good.

The whole process was completely painless and done completely remotely until they sent the notary to my house for closing.

I was awfully happy with this but now wondering if I could have done even better elsewhere had I moved money. It never even occurred to me to shop around.

Thoughts?
User avatar
Silly Wabbit
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Re: Relationship mortgage discounts for moving a million assets

Post by Silly Wabbit »

BigLaw Survivor wrote: Sat Oct 16, 2021 12:09 pm I haven't read this entire thread but thought I'd share my recent experience.

I have about $5.5 million in Schwab, brokerage and retirement accounts combined, and I've been retired for six years. A couple of months ago (July/August) they set me up with two refinances through Rocket Mortgage/Quicken Loans.

The first was a 7/1 ARM refi of my primary residence, a $725k mortgage, at 1.7 percent without zero (and I mean zero) fees and closing costs.

The second was a 7/1 refi of an investment property at 1.875 percent with some fees and costs they couldn't or wouldn't waive -- but c'mon, 1.875 percent for an investment property is pretty darn good.

The whole process was completely painless and done completely remotely until they sent the notary to my house for closing.

I was awfully happy with this but now wondering if I could have done even better elsewhere had I moved money. It never even occurred to me to shop around.

Thoughts?
Live without regrets. I did approximately the same deal with Schwab a few months ago. I shopped around and didn't find anything better.
moneyflowin
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Re: Relationship mortgage discounts for moving a million assets

Post by moneyflowin »

What's the "cost" of moving these assets over? How much return can you get from them while they're parked at Chase et al, and is there any asset management fee?

You could leave the $1.2M in an account with IB, buy $1.6M worth of index ETFs ($400k margin). The margin rate is 1.5%. If you bought earlier this year, that $400k margin would have returned $55-60k including dividends and margin interest. So is it worth the reduced mortgage rate? There is a high opportunity cost
Semantics
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Re: Relationship mortgage discounts for moving a million assets

Post by Semantics »

moneyflowin wrote: Sat Oct 16, 2021 11:50 pm What's the "cost" of moving these assets over? How much return can you get from them while they're parked at Chase et al, and is there any asset management fee?

You could leave the $1.2M in an account with IB, buy $1.6M worth of index ETFs ($400k margin). The margin rate is 1.5%. If you bought earlier this year, that $400k margin would have returned $55-60k including dividends and margin interest. So is it worth the reduced mortgage rate? There is a high opportunity cost
Why would there be any cost? You can just transfer those 1.6M of assets from IBKR to Schwab, it may take multiple steps though since you'll need to take a margin loan at Schwab to pay off the one at IBKR.
moneyflowin
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Re: Relationship mortgage discounts for moving a million assets

Post by moneyflowin »

Semantics wrote: Sun Oct 17, 2021 1:45 am
moneyflowin wrote: Sat Oct 16, 2021 11:50 pm What's the "cost" of moving these assets over? How much return can you get from them while they're parked at Chase et al, and is there any asset management fee?

You could leave the $1.2M in an account with IB, buy $1.6M worth of index ETFs ($400k margin). The margin rate is 1.5%. If you bought earlier this year, that $400k margin would have returned $55-60k including dividends and margin interest. So is it worth the reduced mortgage rate? There is a high opportunity cost
Why would there be any cost? You can just transfer those 1.6M of assets from IBKR to Schwab, it may take multiple steps though since you'll need to take a margin loan at Schwab to pay off the one at IBKR.
So the "cost" is the 6.6% margin rate at Schwab vs 1.5% at IB. Is the additional $20,400 in margin interest worth the mortgage rate discount? Like I said, there's an opportunity cost in transferring assets just to get a lower mortgage rate.
User avatar
8foot7
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Re: Relationship mortgage discounts for moving a million assets

Post by 8foot7 »

moneyflowin wrote: Sun Oct 17, 2021 2:00 am
Semantics wrote: Sun Oct 17, 2021 1:45 am
moneyflowin wrote: Sat Oct 16, 2021 11:50 pm What's the "cost" of moving these assets over? How much return can you get from them while they're parked at Chase et al, and is there any asset management fee?

You could leave the $1.2M in an account with IB, buy $1.6M worth of index ETFs ($400k margin). The margin rate is 1.5%. If you bought earlier this year, that $400k margin would have returned $55-60k including dividends and margin interest. So is it worth the reduced mortgage rate? There is a high opportunity cost
Why would there be any cost? You can just transfer those 1.6M of assets from IBKR to Schwab, it may take multiple steps though since you'll need to take a margin loan at Schwab to pay off the one at IBKR.
So the "cost" is the 6.6% margin rate at Schwab vs 1.5% at IB. Is the additional $20,400 in margin interest worth the mortgage rate discount? Like I said, there's an opportunity cost in transferring assets just to get a lower mortgage rate.
This ignores the fact that Schwab will bend on the margin rate for a 1.2MM account
evoila
Posts: 23
Joined: Fri Jan 20, 2017 1:31 am

Re: Relationship mortgage discounts for moving a million assets

Post by evoila »

xerxes101 wrote: Mon Oct 11, 2021 7:48 am Does anyone know what debt to income ratio do banks like B of A, Chase, or WF require to qualify a person for a 10/1 interest only jumbo loan? I already have a 30 year fixed and am thinking going 10/1 ARM interest only route because I do not believe we will be staying in the house for that long and :idea: I feel more in charge of what to do with the cash flow with 10/1 interest only. Is it a more stringent qualification? Thx :beer
I think BofA underwrites to the max interest rate that the rate can go to for their floating IO product -- 12% I believe. Not sure about Chase or WF's IO product.
evoila
Posts: 23
Joined: Fri Jan 20, 2017 1:31 am

Re: Relationship mortgage discounts for moving a million assets

Post by evoila »

moneyflowin wrote: Sun Oct 17, 2021 2:00 am
Semantics wrote: Sun Oct 17, 2021 1:45 am
moneyflowin wrote: Sat Oct 16, 2021 11:50 pm What's the "cost" of moving these assets over? How much return can you get from them while they're parked at Chase et al, and is there any asset management fee?

You could leave the $1.2M in an account with IB, buy $1.6M worth of index ETFs ($400k margin). The margin rate is 1.5%. If you bought earlier this year, that $400k margin would have returned $55-60k including dividends and margin interest. So is it worth the reduced mortgage rate? There is a high opportunity cost
Why would there be any cost? You can just transfer those 1.6M of assets from IBKR to Schwab, it may take multiple steps though since you'll need to take a margin loan at Schwab to pay off the one at IBKR.
So the "cost" is the 6.6% margin rate at Schwab vs 1.5% at IB. Is the additional $20,400 in margin interest worth the mortgage rate discount? Like I said, there's an opportunity cost in transferring assets just to get a lower mortgage rate.
You literally need to move money to these banks for a few days only. 1-2 days before loan docs are sent they get the rate reduction approved, then the loan closes, and then you can transfer the money back out to wherever you want.
zagguru
Posts: 30
Joined: Sat May 23, 2020 11:02 pm

Re: Relationship mortgage discounts for moving a million assets

Post by zagguru »

Does anyone know if TD Bank does such discounts? My mortgage broker seems to say no, but he says on occasion exceptions are made for 750k+. I haven't been able to see anything published online at all

Also, am i correct in assuming that the banks wont care if the money you bring is money from family? I.e. 250k for 2-3 siblings each. What is the best way to transfer the money w/o raising any flags? wiring it?
zagguru
Posts: 30
Joined: Sat May 23, 2020 11:02 pm

Re: Relationship mortgage discounts for moving a million assets

Post by zagguru »

Offered 2.75 for 30 year fixed or 2.125 10 year arm or 1.75 for for 7 year arm. Which would you take? Really hard to know if I would still be in the property for more than 10 years or not. Loan amount 1.1 Million
Semantics
Posts: 352
Joined: Tue Mar 10, 2020 1:42 pm

Re: Relationship mortgage discounts for moving a million assets

Post by Semantics »

moneyflowin wrote: Sun Oct 17, 2021 2:00 am
Semantics wrote: Sun Oct 17, 2021 1:45 am
moneyflowin wrote: Sat Oct 16, 2021 11:50 pm What's the "cost" of moving these assets over? How much return can you get from them while they're parked at Chase et al, and is there any asset management fee?

You could leave the $1.2M in an account with IB, buy $1.6M worth of index ETFs ($400k margin). The margin rate is 1.5%. If you bought earlier this year, that $400k margin would have returned $55-60k including dividends and margin interest. So is it worth the reduced mortgage rate? There is a high opportunity cost
Why would there be any cost? You can just transfer those 1.6M of assets from IBKR to Schwab, it may take multiple steps though since you'll need to take a margin loan at Schwab to pay off the one at IBKR.
So the "cost" is the 6.6% margin rate at Schwab vs 1.5% at IB. Is the additional $20,400 in margin interest worth the mortgage rate discount? Like I said, there's an opportunity cost in transferring assets just to get a lower mortgage rate.
Schwab offered me a slightly lower margin rate than IB, just call them up and ask.
modernist
Posts: 8
Joined: Fri Feb 28, 2020 1:10 am

Re: Relationship mortgage discounts for moving a million assets

Post by modernist »

zagguru wrote: Mon Oct 18, 2021 10:14 pm Offered 2.75 for 30 year fixed or 2.125 10 year arm or 1.75 for for 7 year arm. Which would you take? Really hard to know if I would still be in the property for more than 10 years or not. Loan amount 1.1 Million
Can you say which bank offered these amounts?
bleuspeed
Posts: 14
Joined: Sat Nov 25, 2017 5:33 pm

Re: Relationship mortgage discounts for moving a million assets

Post by bleuspeed »

bwilligy wrote: Fri Sep 03, 2021 7:35 pm Just got a competitive jumbo loan quote from my mortgage broker for Goldman Sachs which had relationship discounts kicking in at $250k and $500k. Has anyone had experience with Goldman Sachs? Curious about:
  • The experience with them on the mortgage side...I don't think I'd heard of them doing retail mortgages before.
  • The experience moving over assets to them and their brokerage platform. I'd have to move a bunch of my existing taxable and retirement accounts from Vanguard and Fidelity to qualify, so curious what the experience of their platform is like.
I don't have experience with Goldman, but the guy who handled my last purchase and then a refinance at Citibank recently moved over to a broker called Guaranteed Rate Affinity and they are a broker for Goldman. I trust him and his back end ops guy who also moved with him and would do business with them again if I get a good rate that would help me move over from Citi. The tiers you mentioned are what he shared with me as well.
Count of Notre Dame
Posts: 447
Joined: Fri Oct 11, 2013 1:08 pm

Re: Relationship mortgage discounts for moving a million assets

Post by Count of Notre Dame »

zagguru wrote: Mon Oct 18, 2021 10:14 pm Offered 2.75 for 30 year fixed or 2.125 10 year arm or 1.75 for for 7 year arm. Which would you take? Really hard to know if I would still be in the property for more than 10 years or not. Loan amount 1.1 Million
If you're not thinking it's your "forever" home, then I'd take the 7-year. Personally I'm in my home before we downsize during retirement home, and I'm eyeing the 10-year.

Which bank and how much of an AUM discount does this include? Mind sharing the details?
jarjarM
Posts: 2502
Joined: Mon Jul 16, 2018 1:21 pm

Re: Relationship mortgage discounts for moving a million assets

Post by jarjarM »

zagguru wrote: Sun Oct 17, 2021 12:12 pm Does anyone know if TD Bank does such discounts? My mortgage broker seems to say no, but he says on occasion exceptions are made for 750k+. I haven't been able to see anything published online at all

Also, am i correct in assuming that the banks wont care if the money you bring is money from family? I.e. 250k for 2-3 siblings each. What is the best way to transfer the money w/o raising any flags? wiring it?
Not all discounts and rates are published online, some advisors do have some flexibility and muscle to move the discounts depending on amount AUM that one will bring in.

As for the money source, they won't care if it's transferred from your account but if it's from family, the underwriter is most likely going to ask questions and may request proof that money is NOT a loan. Also that may run afoul with IRS rule, so best not to do it if you able to do this without borrowing money from family. Now, if your advisor is good, they may be able to justify discount via family AUM but that very much so depends on bank/brokerage firms.
Count of Notre Dame
Posts: 447
Joined: Fri Oct 11, 2013 1:08 pm

Re: Relationship mortgage discounts for moving a million assets

Post by Count of Notre Dame »

jarjarM wrote: Tue Oct 19, 2021 12:54 pm
zagguru wrote: Sun Oct 17, 2021 12:12 pm Does anyone know if TD Bank does such discounts? My mortgage broker seems to say no, but he says on occasion exceptions are made for 750k+. I haven't been able to see anything published online at all

Also, am i correct in assuming that the banks wont care if the money you bring is money from family? I.e. 250k for 2-3 siblings each. What is the best way to transfer the money w/o raising any flags? wiring it?
Not all discounts and rates are published online, some advisors do have some flexibility and muscle to move the discounts depending on amount AUM that one will bring in.

As for the money source, they won't care if it's transferred from your account but if it's from family, the underwriter is most likely going to ask questions and may request proof that money is NOT a loan. Also that may run afoul with IRS rule, so best not to do it if you able to do this without borrowing money from family. Now, if your advisor is good, they may be able to justify discount via family AUM but that very much so depends on bank/brokerage firms.
I heard the same from BofA, but usually the underwriter only asks for two months of bank statements (to prove no loan on your 60-day credit report) so if you transfer the money before that 60-day window you don't have to prove it's not a loan.
jarjarM
Posts: 2502
Joined: Mon Jul 16, 2018 1:21 pm

Re: Relationship mortgage discounts for moving a million assets

Post by jarjarM »

Count of Notre Dame wrote: Tue Oct 19, 2021 1:46 pm I heard the same from BofA, but usually the underwriter only asks for two months of bank statements (to prove no loan on your 60-day credit report) so if you transfer the money before that 60-day window you don't have to prove it's not a loan.
That is true. They typically only review only 60-day window. But the potential gift issue may still be an IRS headache since moving the fund that large will trigger reporting (especially if the current proposed legislation passes).
fogalog
Posts: 414
Joined: Sat Nov 07, 2015 10:31 am

Re: Relationship mortgage discounts for moving a million assets

Post by fogalog »

Semantics wrote: Fri Oct 01, 2021 9:06 pm Anyone here working with First Republic on a Jumbo interest only? Talked to someone there a while ago and they were pretty gung ho about giving me a very quick pre-approval, and pushed me toward an IO loan, which makes a lot of sense for my circumstance (chunk of NW in non-liquid startup equity), but I'm not sold on them because their rates seem significantly worse and I have no interest in using their wealth management offering given the fees.

From what I'm reading in this thread it seems like Schwab has much more competitive rates on ARM, both IO and amortized, and I already have a lot of assets there and like their brokerage/PAL offerings. I've also been very pleased at how easy it is to negotiate with them. If First Republic can match them, I'd consider them though, just because they seem sympathetic to my startup equity (it's probably one of the less risky startups out there). I'd love to know if anyone has evaluated them both.

Does my take match what y'all have seen?
I was in exactly your situation and I got an I/O, 10yr for 2.95% a year ago for a jumbo loan from First Republic. If you are in the Bay Area PM me and I'd be happy to give you a name. I did not move any money there and I do not use them - or anyone else - for wealth management. No-one else was offering this though I have not checked recently. I was happy with the transaction - all very smooth and all completed online / phone. Notary came to my house for signatures and we did it outside, masks on, etc.

Good luck!
Count of Notre Dame
Posts: 447
Joined: Fri Oct 11, 2013 1:08 pm

Re: Relationship mortgage discounts for moving a million assets

Post by Count of Notre Dame »

fogalog wrote: Tue Oct 19, 2021 2:34 pm
Semantics wrote: Fri Oct 01, 2021 9:06 pm Anyone here working with First Republic on a Jumbo interest only? Talked to someone there a while ago and they were pretty gung ho about giving me a very quick pre-approval, and pushed me toward an IO loan, which makes a lot of sense for my circumstance (chunk of NW in non-liquid startup equity), but I'm not sold on them because their rates seem significantly worse and I have no interest in using their wealth management offering given the fees.

From what I'm reading in this thread it seems like Schwab has much more competitive rates on ARM, both IO and amortized, and I already have a lot of assets there and like their brokerage/PAL offerings. I've also been very pleased at how easy it is to negotiate with them. If First Republic can match them, I'd consider them though, just because they seem sympathetic to my startup equity (it's probably one of the less risky startups out there). I'd love to know if anyone has evaluated them both.

Does my take match what y'all have seen?
I was in exactly your situation and I got an I/O, 10yr for 2.95% a year ago for a jumbo loan from First Republic. If you are in the Bay Area PM me and I'd be happy to give you a name. I did not move any money there and I do not use them - or anyone else - for wealth management. No-one else was offering this though I have not checked recently. I was happy with the transaction - all very smooth and all completed online / phone. Notary came to my house for signatures and we did it outside, masks on, etc.

Good luck!
Can’t you refinance that again and save 1%?
fogalog
Posts: 414
Joined: Sat Nov 07, 2015 10:31 am

Re: Relationship mortgage discounts for moving a million assets

Post by fogalog »

Count of Notre Dame wrote: Tue Oct 19, 2021 5:50 pm
fogalog wrote: Tue Oct 19, 2021 2:34 pm
Semantics wrote: Fri Oct 01, 2021 9:06 pm Anyone here working with First Republic on a Jumbo interest only? Talked to someone there a while ago and they were pretty gung ho about giving me a very quick pre-approval, and pushed me toward an IO loan, which makes a lot of sense for my circumstance (chunk of NW in non-liquid startup equity), but I'm not sold on them because their rates seem significantly worse and I have no interest in using their wealth management offering given the fees.

From what I'm reading in this thread it seems like Schwab has much more competitive rates on ARM, both IO and amortized, and I already have a lot of assets there and like their brokerage/PAL offerings. I've also been very pleased at how easy it is to negotiate with them. If First Republic can match them, I'd consider them though, just because they seem sympathetic to my startup equity (it's probably one of the less risky startups out there). I'd love to know if anyone has evaluated them both.

Does my take match what y'all have seen?
I was in exactly your situation and I got an I/O, 10yr for 2.95% a year ago for a jumbo loan from First Republic. If you are in the Bay Area PM me and I'd be happy to give you a name. I did not move any money there and I do not use them - or anyone else - for wealth management. No-one else was offering this though I have not checked recently. I was happy with the transaction - all very smooth and all completed online / phone. Notary came to my house for signatures and we did it outside, masks on, etc.

Good luck!
Can’t you refinance that again and save 1%?
Where are you seeing sub 2% for I/O jumbo?
CletusCaddy
Posts: 2678
Joined: Sun Sep 12, 2021 4:23 am

Re: Relationship mortgage discounts for moving a million assets

Post by CletusCaddy »

fogalog wrote: Wed Oct 20, 2021 6:17 pm
Count of Notre Dame wrote: Tue Oct 19, 2021 5:50 pm
fogalog wrote: Tue Oct 19, 2021 2:34 pm
Semantics wrote: Fri Oct 01, 2021 9:06 pm Anyone here working with First Republic on a Jumbo interest only? Talked to someone there a while ago and they were pretty gung ho about giving me a very quick pre-approval, and pushed me toward an IO loan, which makes a lot of sense for my circumstance (chunk of NW in non-liquid startup equity), but I'm not sold on them because their rates seem significantly worse and I have no interest in using their wealth management offering given the fees.

From what I'm reading in this thread it seems like Schwab has much more competitive rates on ARM, both IO and amortized, and I already have a lot of assets there and like their brokerage/PAL offerings. I've also been very pleased at how easy it is to negotiate with them. If First Republic can match them, I'd consider them though, just because they seem sympathetic to my startup equity (it's probably one of the less risky startups out there). I'd love to know if anyone has evaluated them both.

Does my take match what y'all have seen?
I was in exactly your situation and I got an I/O, 10yr for 2.95% a year ago for a jumbo loan from First Republic. If you are in the Bay Area PM me and I'd be happy to give you a name. I did not move any money there and I do not use them - or anyone else - for wealth management. No-one else was offering this though I have not checked recently. I was happy with the transaction - all very smooth and all completed online / phone. Notary came to my house for signatures and we did it outside, masks on, etc.

Good luck!
Can’t you refinance that again and save 1%?
Where are you seeing sub 2% for I/O jumbo?
Schwab with >$5M moved over

https://www.schwab.com/public/schwab/ba ... gage_rates
fogalog
Posts: 414
Joined: Sat Nov 07, 2015 10:31 am

Re: Relationship mortgage discounts for moving a million assets

Post by fogalog »

CletusCaddy wrote: Wed Oct 20, 2021 6:55 pm
fogalog wrote: Wed Oct 20, 2021 6:17 pm
Count of Notre Dame wrote: Tue Oct 19, 2021 5:50 pm
fogalog wrote: Tue Oct 19, 2021 2:34 pm
Semantics wrote: Fri Oct 01, 2021 9:06 pm Anyone here working with First Republic on a Jumbo interest only? Talked to someone there a while ago and they were pretty gung ho about giving me a very quick pre-approval, and pushed me toward an IO loan, which makes a lot of sense for my circumstance (chunk of NW in non-liquid startup equity), but I'm not sold on them because their rates seem significantly worse and I have no interest in using their wealth management offering given the fees.

From what I'm reading in this thread it seems like Schwab has much more competitive rates on ARM, both IO and amortized, and I already have a lot of assets there and like their brokerage/PAL offerings. I've also been very pleased at how easy it is to negotiate with them. If First Republic can match them, I'd consider them though, just because they seem sympathetic to my startup equity (it's probably one of the less risky startups out there). I'd love to know if anyone has evaluated them both.

Does my take match what y'all have seen?
I was in exactly your situation and I got an I/O, 10yr for 2.95% a year ago for a jumbo loan from First Republic. If you are in the Bay Area PM me and I'd be happy to give you a name. I did not move any money there and I do not use them - or anyone else - for wealth management. No-one else was offering this though I have not checked recently. I was happy with the transaction - all very smooth and all completed online / phone. Notary came to my house for signatures and we did it outside, masks on, etc.

Good luck!
Can’t you refinance that again and save 1%?
Where are you seeing sub 2% for I/O jumbo?
Schwab with >$5M moved over

https://www.schwab.com/public/schwab/ba ... gage_rates
Thanks for the link. It looks like 3.125% for a 10/1 I/O which becomes 2.375% (subtract 0.75%) if I move $5M or 2.125% (subtract 1.0%) if I move $10M. I don't see sub 2%? What am I missing?
jarjarM
Posts: 2502
Joined: Mon Jul 16, 2018 1:21 pm

Re: Relationship mortgage discounts for moving a million assets

Post by jarjarM »

fogalog wrote: Wed Oct 20, 2021 7:10 pm Thanks for the link. It looks like 3.125% for a 10/1 I/O which becomes 2.375% (subtract 0.75%) if I move $5M or 2.125% (subtract 1.0%) if I move $10M. I don't see sub 2%? What am I missing?
Rate moved up significantly in the last month or so. It was much better than that before. For example, I got a 10/6 months ARM with schwab Jumbo for 1.625% (this is back in Jun with 0.75% discount). At the time, 10/1 I/O with discount was sub 2% as well.
zagguru
Posts: 30
Joined: Sat May 23, 2020 11:02 pm

Re: Relationship mortgage discounts for moving a million assets

Post by zagguru »

Count of Notre Dame wrote: Tue Oct 19, 2021 11:44 am
zagguru wrote: Mon Oct 18, 2021 10:14 pm Offered 2.75 for 30 year fixed or 2.125 10 year arm or 1.75 for for 7 year arm. Which would you take? Really hard to know if I would still be in the property for more than 10 years or not. Loan amount 1.1 Million
If you're not thinking it's your "forever" home, then I'd take the 7-year. Personally I'm in my home before we downsize during retirement home, and I'm eyeing the 10-year.

Which bank and how much of an AUM discount does this include? Mind sharing the details?
modernist wrote: Tue Oct 19, 2021 10:20 am
zagguru wrote: Mon Oct 18, 2021 10:14 pm Offered 2.75 for 30 year fixed or 2.125 10 year arm or 1.75 for for 7 year arm. Which would you take? Really hard to know if I would still be in the property for more than 10 years or not. Loan amount 1.1 Million
Can you say which bank offered these amounts?
Sure, its TD Bank. I am actually getting a physician loan and only putting 10% down on a 1.3 Million House. My loan officer is very aggressive, got me cleared to close is under 3 weeks, however, he is telling me he is tapped out on all possible discounts. He said 2.75 with 1/8 (around $3k) would be the lowest he would be able to go. The ARM rates he says are much more aggressive. I just dont want to be in a position in 10 years where rates are double and I regret my decision not to lock it at these bottom low rates. Then again, having a 2.125 rate for 10/1 is really, really hard to say no to.

If you want my loan officer's information, PM me and I will share
zagguru
Posts: 30
Joined: Sat May 23, 2020 11:02 pm

Re: Relationship mortgage discounts for moving a million assets

Post by zagguru »

jarjarM wrote: Tue Oct 19, 2021 12:54 pm
zagguru wrote: Sun Oct 17, 2021 12:12 pm Does anyone know if TD Bank does such discounts? My mortgage broker seems to say no, but he says on occasion exceptions are made for 750k+. I haven't been able to see anything published online at all

Also, am i correct in assuming that the banks wont care if the money you bring is money from family? I.e. 250k for 2-3 siblings each. What is the best way to transfer the money w/o raising any flags? wiring it?
Not all discounts and rates are published online, some advisors do have some flexibility and muscle to move the discounts depending on amount AUM that one will bring in.

As for the money source, they won't care if it's transferred from your account but if it's from family, the underwriter is most likely going to ask questions and may request proof that money is NOT a loan. Also that may run afoul with IRS rule, so best not to do it if you able to do this without borrowing money from family. Now, if your advisor is good, they may be able to justify discount via family AUM but that very much so depends on bank/brokerage firms.
My loan officer is saying discounts start 750K. I would only be able to bring 500k
fogalog
Posts: 414
Joined: Sat Nov 07, 2015 10:31 am

Re: Relationship mortgage discounts for moving a million assets

Post by fogalog »

jarjarM wrote: Wed Oct 20, 2021 7:17 pm
fogalog wrote: Wed Oct 20, 2021 7:10 pm Thanks for the link. It looks like 3.125% for a 10/1 I/O which becomes 2.375% (subtract 0.75%) if I move $5M or 2.125% (subtract 1.0%) if I move $10M. I don't see sub 2%? What am I missing?
Rate moved up significantly in the last month or so. It was much better than that before. For example, I got a 10/6 months ARM with schwab Jumbo for 1.625% (this is back in Jun with 0.75% discount). At the time, 10/1 I/O with discount was sub 2% as well.
I'll keep an eye out - thanks.

One thing I was confused by: are the assets moved across AUM? ie will I be expected to pay a management fee on what I move over? I can't tell from the Schwab link posted earlier.

Thanks in advance.
jarjarM
Posts: 2502
Joined: Mon Jul 16, 2018 1:21 pm

Re: Relationship mortgage discounts for moving a million assets

Post by jarjarM »

fogalog wrote: Wed Oct 20, 2021 7:52 pm
jarjarM wrote: Wed Oct 20, 2021 7:17 pm
fogalog wrote: Wed Oct 20, 2021 7:10 pm Thanks for the link. It looks like 3.125% for a 10/1 I/O which becomes 2.375% (subtract 0.75%) if I move $5M or 2.125% (subtract 1.0%) if I move $10M. I don't see sub 2%? What am I missing?
Rate moved up significantly in the last month or so. It was much better than that before. For example, I got a 10/6 months ARM with schwab Jumbo for 1.625% (this is back in Jun with 0.75% discount). At the time, 10/1 I/O with discount was sub 2% as well.
I'll keep an eye out - thanks.

One thing I was confused by: are the assets moved across AUM? ie will I be expected to pay a management fee on what I move over? I can't tell from the Schwab link posted earlier.

Thanks in advance.
Don't have to sign up with their management service. They just want your holding in their brokerage.
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