Relationship mortgage discounts for moving a million assets

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craiggsean
Posts: 179
Joined: Wed Nov 27, 2013 4:47 pm

Re: Relationship mortgage discounts for moving a million assets

Post by craiggsean »

Which of these rates would you choose? Are they competitive?
.5% discount after moving the new assets of over 825K
and processing fee discount - up to $1,150
Will the rates change if I increase or decrease the amount? 548K is the conforming loan cap.
Below are all conforming loans of 548K.

30yr A
Interest Rate: 2.990% (2.490% after discount)
Loan Term: 360
LTV: 73.067%
Points: -0.267%
APR: 2.997% (2.497% after discount)

30yr B (+ $2.8K more in closing cost than others)
Interest Rate: 2.875% (2.375% after discount)
Loan Term: 360
LTV: 73.067%
Points: 0.239%
APR: 2.921% (2.421% after discount)

20yr
Interest Rate: 2.625% (2.125% after discount)
Loan Term: 240
LTV: 73.067%
Points: 0.054%
APR: 2.670% (2.170% after discount)

15yr
Interest Rate: 2.490% (1.99% after discount)
Loan Term: 180
LTV: 73.067%
Points: -0.450%
APR: 2.490% (1.99% after discount)
Last edited by craiggsean on Wed Oct 27, 2021 10:32 pm, edited 1 time in total.
jarjarM
Posts: 2511
Joined: Mon Jul 16, 2018 1:21 pm

Re: Relationship mortgage discounts for moving a million assets

Post by jarjarM »

craiggsean wrote: Wed Oct 27, 2021 10:08 pm Which of these rates would you choose? Are they competitive?
.5% discount after moving the new assets of over 825K
and processing fee discount - up to $1,150
Will the rates change if I increase or decrease the amount? 548K is the conforming loan cap.
Below are all conforming loans of 548K.

30yr A
Interest Rate: 2.990% (2.490% after discount)
Loan Term: 360
LTV: 73.067%
Points: -0.267%
APR: 2.997% (2.497% after discount)

30yr B
Interest Rate: 2.875% (2.375% after discount)
Loan Term: 360
LTV: 73.067%
Points: 0.239%
APR: 2.921% (2.421% after discount)

20yr
Interest Rate: 2.625% (2.125% after discount)
Loan Term: 240
LTV: 73.067%
Points: 0.054%
APR: 2.670% (2.170% after discount)

15yr
Interest Rate: 2.490% (1.99% after discount)
Loan Term: 180
LTV: 73.067%
Points: -0.450%
APR: 2.490% (1.99% after discount)
Why not look into ARM (I saw your other post as well)? Sometime it's not about how long you'll be in the house but it's also about when will be the next interest rate drop. If you have enough to cover the mortgage at any point, then a 10/1 ARM gives you a lot more options and lower starting rate. If you want fixed rate only, then I would go for 30yr A, less monthly payment means more flexibility on your side, either to pay down principal or invest (maybe 10yr yield will be higher than 3% in the future).
craiggsean
Posts: 179
Joined: Wed Nov 27, 2013 4:47 pm

Re: Relationship mortgage discounts for moving a million assets

Post by craiggsean »

Thank you I wasn't planning on moving soon but here are the ARM rates:
Comparing APR rates is apples-to-apples, right?

10yr/6mo Conforming ARM
Interest Rate: 2.750% (2.25% after discount)
Loan Term: 360
LTV: 73.067%
Points: -0.095%
APR: 2.789% (2.289% after discount)


7yr/6mo Conforming ARM
Interest Rate: 2.375% (1.875% after discount)
Loan Term: 360
LTV: 73.067%
Points: 0.160%
APR: 2.647% (2.147% after discount)

5yr/6mo Conforming ARM
Interest Rate: 2.375% (1.875% after discount)
Loan Term: 360
LTV: 73.067%
Points: 0.010%
APR: 2.682% (2.182% after discount)
craiggsean
Posts: 179
Joined: Wed Nov 27, 2013 4:47 pm

Re: Relationship mortgage discounts for moving a million assets

Post by craiggsean »

In this case, wouldn't 15 yr fixed be better than any ARM?
Count of Notre Dame
Posts: 448
Joined: Fri Oct 11, 2013 1:08 pm

Re: Relationship mortgage discounts for moving a million assets

Post by Count of Notre Dame »

Just received an updated quote from B of A, rates have risen about .5% from my last quote in September. Guess I should have locked then!
zagguru
Posts: 30
Joined: Sat May 23, 2020 11:02 pm

Re: Relationship mortgage discounts for moving a million assets

Post by zagguru »

They were down last week on Monday / Tuesday and then shot back up end of the week
SobeCane
Posts: 283
Joined: Mon Oct 25, 2010 11:13 am

Re: Relationship mortgage discounts for moving a million assets

Post by SobeCane »

30 Year Fixed Jumbo Loan for Primary Residence 20% down and 800+ credit score:

Bank of America 2.75% with 1/8 discount for each $250k

Wells Fargo 2.85% with 1/8 discount for each $250k


Before I go with BOA, does anyone think it can be beat?
krillnu
Posts: 8
Joined: Sat Nov 20, 2021 8:37 am

Re: Relationship mortgage discounts for moving a million assets

Post by krillnu »

SobeCane wrote: Fri Nov 19, 2021 9:38 pm 30 Year Fixed Jumbo Loan for Primary Residence 20% down and 800+ credit score:

Bank of America 2.75% with 1/8 discount for each $250k

Wells Fargo 2.85% with 1/8 discount for each $250k


Before I go with BOA, does anyone think it can be beat?
I think BofA discount tops out at 0.375% while Wells tops out at 0.500% - did you hear differently? If so Wells could be a bit lower.

I am in a similar boat and asking Citi / Chase / Rocket what they can do. Schwab/Rocket has the biggest relationship discounts (up to 1%).
SobeCane
Posts: 283
Joined: Mon Oct 25, 2010 11:13 am

Re: Relationship mortgage discounts for moving a million assets

Post by SobeCane »

Schwab’s base rate prior to discounts is much higher at 3.375

Let me know what you hear from Citi and Chase
krillnu
Posts: 8
Joined: Sat Nov 20, 2021 8:37 am

Re: Relationship mortgage discounts for moving a million assets

Post by krillnu »

SobeCane wrote: Sat Nov 20, 2021 1:29 pm Schwab’s base rate prior to discounts is much higher at 3.375

Let me know what you hear from Citi and Chase
Yes Schwab’s 30 yr base rate is quite high - trying to see if they’ll match and then take relationship discount on top. Their ARM rates seem quite competitive if you’re open to a 10/6.

Hoping to hear back from everyone Monday, was also interested in First Republic based on comments here and what I’ve heard.
SobeCane
Posts: 283
Joined: Mon Oct 25, 2010 11:13 am

Re: Relationship mortgage discounts for moving a million assets

Post by SobeCane »

krillnu wrote: Sat Nov 20, 2021 8:46 am
SobeCane wrote: Fri Nov 19, 2021 9:38 pm 30 Year Fixed Jumbo Loan for Primary Residence 20% down and 800+ credit score:

Bank of America 2.75% with 1/8 discount for each $250k

Wells Fargo 2.85% with 1/8 discount for each $250k


Before I go with BOA, does anyone think it can be beat?
I think BofA discount tops out at 0.375% while Wells tops out at 0.500% - did you hear differently? If so Wells could be a bit lower.

I am in a similar boat and asking Citi / Chase / Rocket what they can do. Schwab/Rocket has the biggest relationship discounts (up to 1%).
I confirmed today, and you are spot-on. BOA tops out at 0.375% discount for $1mil and Wells is at 0.500% for $1mil.

Anybody have recent rates from Citi?
krillnu
Posts: 8
Joined: Sat Nov 20, 2021 8:37 am

Re: Relationship mortgage discounts for moving a million assets

Post by krillnu »

I didn't hear back from Citi after an initial conversation - at the time (~3 wks ago) they were quoting about 0.125% higher than Wells / BoA + 0.125 points on 30y fixed.

Sharing findings from my research (relationship discount tiers and availability of online rate calculators):

BofA
$250k | 0.125%
$500k | 0.250%
$3MM+ | 0.375%
(source: loan officer)
Rate calculator: https://www.bankofamerica.com/mortgage/home-mortgage/

Wells Fargo
$250k | .125%
$500k | .250%
$750k | .375%
$1MM+| .500%
(source: loan officer)
Rate calculator: https://www.wellsfargo.com/mortgage/rates/customize/

Chase
As % of Loan Amount
37.5% | 0.125%
75% | 0.250%
112.5%| 0.375%
150% | 0.500%
(source: https://www.chase.com/personal/mortgage ... ediscounts)
Rate calculator: https://www.chase.com/personal/mortgage ... calculator

Citi
$50k | 0.125%
$200k | 0.250%
$500k | 0.375%
$1MM | 0.500%
$2MM | 0.625%
(source: https://online.citi.com/US/JRS/portal/t ... ng_landing)
Didn't find a good online rate calculator

Schwab/Rocket
$250k | 0.25%
$1MM | 0.50%
$5MM | 0.75%
$10MM | 1.00%
(source: https://www.schwab.com/mortgages)
Rate calculator: https://www.schwab.com/mortgages/rate-calculator

First Republic: not much published - need to call

Other handy resource - CFPB government rate explorer for your state: https://www.consumerfinance.gov/owning- ... ore-rates/
Last edited by krillnu on Thu Dec 09, 2021 12:48 am, edited 1 time in total.
sc9182
Posts: 2178
Joined: Wed Aug 17, 2016 7:43 pm

Re: Relationship mortgage discounts for moving a million assets

Post by sc9182 »

krillnu wrote: Tue Nov 30, 2021 1:44 am I didn't hear back from Citi after an initial conversation - at the time (~3 wks ago) they were quoting about 0.125% higher than Wells / BoA + 0.125 points on 30y fixed.

Sharing findings from my research (relationship discount tiers and availability of online rate calculators):

BofA
$250k | 0.125%
$500k | 0.250%
$3MM+ | 0.375%
(source: loan officer)
Rate calculator: https://www.bankofamerica.com/mortgage/home-mortgage/

Wells Fargo
$250k | .125%
$500k | .250%
$750k | .375%
$1MM+| .500%
(source: loan officer)
Rate calculator: https://www.wellsfargo.com/mortgage/rates/customize/

Chase
As % of Loan Amount
37.5% | 0.125%
75% | 0.250%
112.5%| 0.375%
150% | 0.500%
(source: https://www.chase.com/personal/mortgage ... ediscounts)
Rate calculator: https://www.chase.com/personal/mortgage ... calculator

Citi
$50k | 0.125%
$200k | 0.250%
$500k | 0.375%
$1MM | 0.500%
$2MM | 0.625%
(source: https://online.citi.com/US/JRS/portal/t ... ng_landing)
Didn't find a good online rate calculator

Schwab/Rocket
$250k | 0.25%
$500k | 0.50%
$750k | 0.75%
$1MM | 1.00%
(source: https://www.schwab.com/mortgages)
Rate calculator: https://www.schwab.com/mortgages/rate-calculator

First Republic: not much published - need to call

Other handy resource - CFPB government rate explorer for your state: https://www.consumerfinance.gov/owning- ... ore-rates/
Thanks for good Summary post.

The best Relationship-discount magic comes when: the person shops around, gets best no-cost/near-zero-cost estimate written-offer — most-likely from a local mortgage broker, take it to one of these big institutions Relationship mortgage officer — have them Match that offer — then throw the Relationship-discount on-top ., Sweet !! (Please note they usually say, they can do either rate-match or Relationship-discount ., but, not both; that’s when your Nego skills and Relationship officer’s exception-handling skills could help to bring success !! Not saying this is easy, but has been done with some level of success with us, and multiple others who reported on this thread. So, nego hard, and go reward yourself!!)
Count of Notre Dame
Posts: 448
Joined: Fri Oct 11, 2013 1:08 pm

Re: Relationship mortgage discounts for moving a million assets

Post by Count of Notre Dame »

I'm actually having trouble getting an actual loan estimate from Union Bank without filling out a full application and authorizing a credit check. I'm currently locked with BofA but trying to get them to match Union Bank. Do I really have to proceed with two different applications to play the matching game?
User avatar
CalculatedRisk
Posts: 274
Joined: Tue Sep 11, 2018 8:04 pm

Re: Relationship mortgage discounts for moving a million assets

Post by CalculatedRisk »

Count of Notre Dame wrote: Mon Dec 06, 2021 3:26 pm I'm actually having trouble getting an actual loan estimate from Union Bank without filling out a full application and authorizing a credit check. I'm currently locked with BofA but trying to get them to match Union Bank. Do I really have to proceed with two different applications to play the matching game?
In my very limited experience, bank will quote you an estimated rate without requiring a credit check. To get an official Loan Estimate, they need to do the credit check. I was also told that for Bank A to beat/match the rate from Bank B, I would need a lock with Bank B. I locked multiple rates, then started to play them against each other. One of the banks would not provide an updated Loan Estimate after beating the other bank (I think because they knew I wanted to take that rate to another bank). If you have the credit checks done within a week or two of each other, it does not negatively affect your credit score because lenders know you are just shopping around (please double-check the duration by searching online).
krillnu
Posts: 8
Joined: Sat Nov 20, 2021 8:37 am

Re: Relationship mortgage discounts for moving a million assets

Post by krillnu »

Depending on the credit check model I think you have 14-30 day window for multiple pulls to count as one. I tried to get my credit checks run within the 14 day window.

I’d also found it helpful to call the lender when asking for quotes, then ask them to follow up with a written offer.

B of A was pickier about getting a true loan estimate worksheet while Wells Fargo and Schwab were a bit more lax on matching as long as there was a document with terms spellled out.

First Republic was also quite competitive if you’re looking for a 30 yr fixed and willing to put more down (25%+).

I’d take the best offer to Wells, Citi, and Schwab, then try to apply their relationship discount post match.
Count of Notre Dame
Posts: 448
Joined: Fri Oct 11, 2013 1:08 pm

Re: Relationship mortgage discounts for moving a million assets

Post by Count of Notre Dame »

Thank you for the replies. Had I known about the multiple credit checks being counted as one if I applied at the same time I would have. As it is I obtained a closing cost statement which BofA accepted as a "loan estimate" even though it's technically not the same document. It just needed to look official.
aaflygirl
Posts: 28
Joined: Thu Apr 14, 2016 10:33 am

Re: Relationship mortgage discounts for moving a million assets

Post by aaflygirl »

Are there any long term ties to the assets moved to Bank of America or any other fine print details that I should be aware of? They are giving me .25% discount rate of 2.625% on 30 yr. Sorry if I'm reposting, but there were 22 pages to read on this topic and my time is limited this morning.
Count of Notre Dame
Posts: 448
Joined: Fri Oct 11, 2013 1:08 pm

Re: Relationship mortgage discounts for moving a million assets

Post by Count of Notre Dame »

aaflygirl wrote: Thu Dec 16, 2021 5:30 am Are there any long term ties to the assets moved to Bank of America or any other fine print details that I should be aware of? They are giving me .25% discount rate of 2.625% on 30 yr. Sorry if I'm reposting, but there were 22 pages to read on this topic and my time is limited this morning.
They sent me a letter after I locked a rate. You have to transfer at leaste $250k in new balances from a verified non-Bank of America account, and provide verification of the transfer at least 10 days prior to closing. Gifted, borrowed, or business funds, 401k retirement accounts, HELOCs don't count.

As far as I can tell there are no terms about how long the money has to stay with BofA after your mortgage closing. Legally, they can't prevent you from transferring that money right after closing.
Count of Notre Dame
Posts: 448
Joined: Fri Oct 11, 2013 1:08 pm

Re: Relationship mortgage discounts for moving a million assets

Post by Count of Notre Dame »

Just finished a cash out refinance. I know have over $600k in liquid assets to qualify for a higher AUM tier. Anyone do a mortgage refinance immediately after a cash out for a better rate?
remomnyc
Posts: 1055
Joined: Mon Jan 04, 2016 3:27 pm

Re: Relationship mortgage discounts for moving a million assets

Post by remomnyc »

Count of Notre Dame wrote: Thu Dec 16, 2021 9:48 am
aaflygirl wrote: Thu Dec 16, 2021 5:30 am Are there any long term ties to the assets moved to Bank of America or any other fine print details that I should be aware of? They are giving me .25% discount rate of 2.625% on 30 yr. Sorry if I'm reposting, but there were 22 pages to read on this topic and my time is limited this morning.
They sent me a letter after I locked a rate. You have to transfer at leaste $250k in new balances from a verified non-Bank of America account, and provide verification of the transfer at least 10 days prior to closing. Gifted, borrowed, or business funds, 401k retirement accounts, HELOCs don't count.

As far as I can tell there are no terms about how long the money has to stay with BofA after your mortgage closing. Legally, they can't prevent you from transferring that money right after closing.
This is correct. I moved $ to qualify for the mortgage reduction at BoA and used those funds at closing for our purchase, leaving just $17 of the transferred $ left in the account. Not only did I get my rate reduction, BoA extended my rate lock when seller wasn't ready to close on time.
Count of Notre Dame
Posts: 448
Joined: Fri Oct 11, 2013 1:08 pm

Re: Relationship mortgage discounts for moving a million assets

Post by Count of Notre Dame »

remomnyc wrote: Thu Dec 16, 2021 10:01 am
Count of Notre Dame wrote: Thu Dec 16, 2021 9:48 am
aaflygirl wrote: Thu Dec 16, 2021 5:30 am Are there any long term ties to the assets moved to Bank of America or any other fine print details that I should be aware of? They are giving me .25% discount rate of 2.625% on 30 yr. Sorry if I'm reposting, but there were 22 pages to read on this topic and my time is limited this morning.
They sent me a letter after I locked a rate. You have to transfer at leaste $250k in new balances from a verified non-Bank of America account, and provide verification of the transfer at least 10 days prior to closing. Gifted, borrowed, or business funds, 401k retirement accounts, HELOCs don't count.

As far as I can tell there are no terms about how long the money has to stay with BofA after your mortgage closing. Legally, they can't prevent you from transferring that money right after closing.
This is correct. I moved $ to qualify for the mortgage reduction at BoA and used those funds at closing for our purchase, leaving just $17 of the transferred $ left in the account. Not only did I get my rate reduction, BoA extended my rate lock when seller wasn't ready to close on time.
Did you move the funds prior to signing your closing documents?
SobeCane
Posts: 283
Joined: Mon Oct 25, 2010 11:13 am

Re: Relationship mortgage discounts for moving a million assets

Post by SobeCane »

Wanted to report back as I just purchased my first house (primary residence) and am appreciative of the guidance and shared knowledge in this thread.

By following the recommendations here I was able to shop the base rates and later tack on the relationship pricing discounts and received a 2.125% APY (2.160% APR) on a 30 year fixed jumbo loan with WF.
remomnyc
Posts: 1055
Joined: Mon Jan 04, 2016 3:27 pm

Re: Relationship mortgage discounts for moving a million assets

Post by remomnyc »

SobeCane wrote: Mon Jan 03, 2022 2:41 pm Wanted to report back as I just purchased my first house (primary residence) and am appreciative of the guidance and shared knowledge in this thread.

By following the recommendations here I was able to shop the base rates and later tack on the relationship pricing discounts and received a 2.125% APY (2.160% APR) on a 30 year fixed jumbo loan with WF.
Congrats!
rajeshlh
Posts: 10
Joined: Wed Aug 05, 2020 10:31 am

Re: Relationship mortgage discounts for moving a million assets

Post by rajeshlh »

Hi,
Could please DM me the contact info for the Wells Fargo lender that you worked with? I am also looking to lower my rate through relationship discounts.

Thanks!!
rajeshlh
Posts: 10
Joined: Wed Aug 05, 2020 10:31 am

Re: Relationship mortgage discounts for moving a million assets

Post by rajeshlh »

Count of Notre Dame wrote: Sun Jan 02, 2022 7:10 pm
remomnyc wrote: Thu Dec 16, 2021 10:01 am
Count of Notre Dame wrote: Thu Dec 16, 2021 9:48 am
aaflygirl wrote: Thu Dec 16, 2021 5:30 am Are there any long term ties to the assets moved to Bank of America or any other fine print details that I should be aware of? They are giving me .25% discount rate of 2.625% on 30 yr. Sorry if I'm reposting, but there were 22 pages to read on this topic and my time is limited this morning.
They sent me a letter after I locked a rate. You have to transfer at leaste $250k in new balances from a verified non-Bank of America account, and provide verification of the transfer at least 10 days prior to closing. Gifted, borrowed, or business funds, 401k retirement accounts, HELOCs don't count.

As far as I can tell there are no terms about how long the money has to stay with BofA after your mortgage closing. Legally, they can't prevent you from transferring that money right after closing.
This is correct. I moved $ to qualify for the mortgage reduction at BoA and used those funds at closing for our purchase, leaving just $17 of the transferred $ left in the account. Not only did I get my rate reduction, BoA extended my rate lock when seller wasn't ready to close on time.
Did you move the funds prior to signing your closing documents?
So, does this mean BofA counted your down-payment amount to meet the tier requirements for rare reduction? That's awesome if they did that
krillnu
Posts: 8
Joined: Sat Nov 20, 2021 8:37 am

Re: Relationship mortgage discounts for moving a million assets

Post by krillnu »

SobeCane wrote: Mon Jan 03, 2022 2:41 pm Wanted to report back as I just purchased my first house (primary residence) and am appreciative of the guidance and shared knowledge in this thread.

By following the recommendations here I was able to shop the base rates and later tack on the relationship pricing discounts and received a 2.125% APY (2.160% APR) on a 30 year fixed jumbo loan with WF.
Congratulations! Enjoy the new home :)
proudowner333
Posts: 90
Joined: Sun Jan 16, 2022 6:50 pm

Re: Relationship mortgage discounts for moving a million assets

Post by proudowner333 »

Hello,

I am new here and this is my first post.
I signed a contract to buy a first new home late last that will be ready in next few months this year 2022. I am working with Wells Faro, but I just found out about relationship mortgage discount through this forum. I have a portfolio account with them and after reading this thread I assume that I am eligible for the rate discount.
Can someone tell me how much discount to expect - let say from $250K to $1M portfolio?

Also, can someone help me with the following questions -

1. I see that WF has higher mortgage rate compared to other lenders - for example, other lenders are offering 3.125% when WF is offering 3.375% for 30 yrs fixed Jumbo loan here in California. How do I negotiate to get them to 3.125% and offer me discount based on my amount in portfolio account.

2. I also noticed that WF processing fees are quite higher compared to other lenders, what are the tricks to negotiate this fees and get discount if possible.

3. Is there any rate discount for putting more towards down payment - such as 25% down payment instead of 20% ?

4. I also heard from other people that if I manage my own escrow such as property tax, property insurance, I can get discount on the rate too, is it also true?

I am getting them to lock my rate soon as I am worried that the rate may shoot up more and my house closing is most likely will be in May 2022.

Any other things that I should be talking to WF loan officer to get me a nice discount ?

Looking forward to your input, suggestion, and help.
Thank you in advance.
krillnu
Posts: 8
Joined: Sat Nov 20, 2021 8:37 am

Re: Relationship mortgage discounts for moving a million assets

Post by krillnu »

proudowner333 wrote: Sun Jan 16, 2022 7:01 pm Hello,

I am new here and this is my first post.
I signed a contract to buy a first new home late last that will be ready in next few months this year 2022. I am working with Wells Faro, but I just found out about relationship mortgage discount through this forum. I have a portfolio account with them and after reading this thread I assume that I am eligible for the rate discount.
Can someone tell me how much discount to expect - let say from $250K to $1M portfolio?

Also, can someone help me with the following questions -

1. I see that WF has higher mortgage rate compared to other lenders - for example, other lenders are offering 3.125% when WF is offering 3.375% for 30 yrs fixed Jumbo loan here in California. How do I negotiate to get them to 3.125% and offer me discount based on my amount in portfolio account.

2. I also noticed that WF processing fees are quite higher compared to other lenders, what are the tricks to negotiate this fees and get discount if possible.

3. Is there any rate discount for putting more towards down payment - such as 25% down payment instead of 20% ?

4. I also heard from other people that if I manage my own escrow such as property tax, property insurance, I can get discount on the rate too, is it also true?

I am getting them to lock my rate soon as I am worried that the rate may shoot up more and my house closing is most likely will be in May 2022.

Any other things that I should be talking to WF loan officer to get me a nice discount ?

Looking forward to your input, suggestion, and help.
Thank you in advance.
Hi welcome!

#1 get a full loan estimate worksheet (ideally) or at least written terms from competing lenders and ask WF to match. Should have at least property zip code/address, purchase price, down payment %, loan type, interest rate, loan origination costs/points. They usually make a price match request and it takes a few days for approval.

#2 doesn’t hurt to just ask, but getting a written offer from another lender will make negotiation position much stronger (show that origination fee/points are lower elsewhere)

#3 I think 25% and 30% down will often provide a slightly better rate - ask about this when you’re getting quotes

In terms of relationship discounts there’s a summary a few posts prior based on Nov research comparing lenders. WF should get you 0.125%-0.500% d/c based on what you suggested.

Wells Fargo
$250k | .125%
$500k | .250%
$750k | .375%
$1MM+| .500%

As mentioned in other posts, the optimal scenario is 1) get written offer terms from multiple lenders 2) ask lender of choice/WF to match terms 3) if they match, ask about relationship discount (try to get this applied post-match so you’re discounting the best rate further, WF was ok doing this)

Goes without saying but be courteous and try not to come off as aggressively playing lenders off each (eg I wouldn’t go back to lenders multiple times and try to continually bid them against each other - rather take the best initial offer and ask your preferred lender to match).

Contrary to what I’ve heard here I had a good experience with WF. Their underwriting team asked for a lot (too much) but the people I interacted with were very kind and responsive.

Good luck!
proudowner333
Posts: 90
Joined: Sun Jan 16, 2022 6:50 pm

Re: Relationship mortgage discounts for moving a million assets

Post by proudowner333 »

krillnu wrote: Thu Jan 20, 2022 12:34 pm
proudowner333 wrote: Sun Jan 16, 2022 7:01 pm Hello,

I am new here and this is my first post.
I signed a contract to buy a first new home late last that will be ready in next few months this year 2022. I am working with Wells Faro, but I just found out about relationship mortgage discount through this forum. I have a portfolio account with them and after reading this thread I assume that I am eligible for the rate discount.
Can someone tell me how much discount to expect - let say from $250K to $1M portfolio?

Also, can someone help me with the following questions -

1. I see that WF has higher mortgage rate compared to other lenders - for example, other lenders are offering 3.125% when WF is offering 3.375% for 30 yrs fixed Jumbo loan here in California. How do I negotiate to get them to 3.125% and offer me discount based on my amount in portfolio account.

2. I also noticed that WF processing fees are quite higher compared to other lenders, what are the tricks to negotiate this fees and get discount if possible.

3. Is there any rate discount for putting more towards down payment - such as 25% down payment instead of 20% ?

4. I also heard from other people that if I manage my own escrow such as property tax, property insurance, I can get discount on the rate too, is it also true?

I am getting them to lock my rate soon as I am worried that the rate may shoot up more and my house closing is most likely will be in May 2022.

Any other things that I should be talking to WF loan officer to get me a nice discount ?

Looking forward to your input, suggestion, and help.
Thank you in advance.
Hi welcome!

#1 get a full loan estimate worksheet (ideally) or at least written terms from competing lenders and ask WF to match. Should have at least property zip code/address, purchase price, down payment %, loan type, interest rate, loan origination costs/points. They usually make a price match request and it takes a few days for approval.

#2 doesn’t hurt to just ask, but getting a written offer from another lender will make negotiation position much stronger (show that origination fee/points are lower elsewhere)

#3 I think 25% and 30% down will often provide a slightly better rate - ask about this when you’re getting quotes

In terms of relationship discounts there’s a summary a few posts prior based on Nov research comparing lenders. WF should get you 0.125%-0.500% d/c based on what you suggested.

Wells Fargo
$250k | .125%
$500k | .250%
$750k | .375%
$1MM+| .500%

As mentioned in other posts, the optimal scenario is 1) get written offer terms from multiple lenders 2) ask lender of choice/WF to match terms 3) if they match, ask about relationship discount (try to get this applied post-match so you’re discounting the best rate further, WF was ok doing this)

Goes without saying but be courteous and try not to come off as aggressively playing lenders off each (eg I wouldn’t go back to lenders multiple times and try to continually bid them against each other - rather take the best initial offer and ask your preferred lender to match).

Contrary to what I’ve heard here I had a good experience with WF. Their underwriting team asked for a lot (too much) but the people I interacted with were very kind and responsive.

Good luck!
Thank you for your kind response.
krillnu
Posts: 8
Joined: Sat Nov 20, 2021 8:37 am

Re: Relationship mortgage discounts for moving a million assets

Post by krillnu »

One sweet spot could be getting a loan estimate / post-discount terms in writing, then getting a lender to match that and applying their relationship discount on top of it.

I had success with getting a written offer from First Republic and then WF matching/beating and applying relationship on top. I believe FRB does some “gentlemen’s handshake” relationship terms (eg 10% of loan value in assets with them) but I’m not positive and it wasn’t written into the quote they provided. The rep I spoke with there was very friendly.
Count of Notre Dame
Posts: 448
Joined: Fri Oct 11, 2013 1:08 pm

Re: Relationship mortgage discounts for moving a million assets

Post by Count of Notre Dame »

Just got a quote today for a HELOC with BofA up to 80% LTV at 3.25%. I have my primary mortage with BofA. That's with a $250k AUM discount of 0.375% and 1% promotional offer discount (need to full draw for 6 months but then the discount is guaranteed for the life of the loan).
proudowner333
Posts: 90
Joined: Sun Jan 16, 2022 6:50 pm

Re: Relationship mortgage discounts for moving a million assets

Post by proudowner333 »

Count of Notre Dame wrote: Mon Jan 24, 2022 5:48 pm Just got a quote today for a HELOC with BofA up to 80% LTV at 3.25%. I have my primary mortage with BofA. That's with a $250k AUM discount of 0.375% and 1% promotional offer discount (need to full draw for 6 months but then the discount is guaranteed for the life of the loan).
If I am reading your post correctly, does it mean you will receive 1.375% discount overall?
Is the 1% promotional discount for anyone or is it a special in your case?
Count of Notre Dame
Posts: 448
Joined: Fri Oct 11, 2013 1:08 pm

Re: Relationship mortgage discounts for moving a million assets

Post by Count of Notre Dame »

proudowner333 wrote: Mon Jan 24, 2022 8:43 pm
Count of Notre Dame wrote: Mon Jan 24, 2022 5:48 pm Just got a quote today for a HELOC with BofA up to 80% LTV at 3.25%. I have my primary mortage with BofA. That's with a $250k AUM discount of 0.375% and 1% promotional offer discount (need to full draw for 6 months but then the discount is guaranteed for the life of the loan).
If I am reading your post correctly, does it mean you will receive 1.375% discount overall?
Is the 1% promotional discount for anyone or is it a special in your case?
You need to have an existing primary mortage with BofA and $250k in assets deposited in a checking or brokerage account with them.
Count of Notre Dame
Posts: 448
Joined: Fri Oct 11, 2013 1:08 pm

Re: Relationship mortgage discounts for moving a million assets

Post by Count of Notre Dame »

Do you think I’ll have any issues during a refinance with transferring a large amount of money to my mother? I borrowed money for a down payment a few years ago, and I paid her back with my most recent refinance. I’m looking at adding a HELOC within a month of refinancing my primary mortgage and have enough cash to qualify after paying my mother back.
proudowner333
Posts: 90
Joined: Sun Jan 16, 2022 6:50 pm

Re: Relationship mortgage discounts for moving a million assets

Post by proudowner333 »

DEBTINATOR wrote: Wed Jun 05, 2019 10:56 am Question for those that have done this before. My wife has an 810 credit score. I don't know, but suspect I'm closer to 780-800 (they use the mortgage lending model which is hard to find w/out paying myFICO.com). I may add myself but it'll reduce lender credits and possibly rate, which kind of defeats the purpose of moving the money in the first place.

My questions:

1. If my wife was alone on the mortgage, does that mean only her assets can count toward the $500k of assets? (e.g. cannot count my IRA, but can count hers + joint brokerage)

2. If I'm on the title, does that matter (for purposes of asset counting)?

3. The mortgage guy seemed a bit loose on the details regarding relationship pricing, but basically said it would show up later in the process.

The part that concerns me is that we have had money at Merrill Edge for 2 mos, so we should at least qualify for Platinum ($400 origination discount). He is seeing no status for preferred rewards (which contradicts what I was initially told). Thoughts?

4. Is the 500k strictly "NEW" money? Should my ~100k in Merrill Edge for 2 mos. count?
I have the exact same situation. Can someone shed the light on this one pls?
proudowner333
Posts: 90
Joined: Sun Jan 16, 2022 6:50 pm

Re: Relationship mortgage discounts for moving a million assets

Post by proudowner333 »

proudowner333 wrote: Thu Jan 27, 2022 11:35 am
DEBTINATOR wrote: Wed Jun 05, 2019 10:56 am Question for those that have done this before. My wife has an 810 credit score. I don't know, but suspect I'm closer to 780-800 (they use the mortgage lending model which is hard to find w/out paying myFICO.com). I may add myself but it'll reduce lender credits and possibly rate, which kind of defeats the purpose of moving the money in the first place.

My questions:

1. If my wife was alone on the mortgage, does that mean only her assets can count toward the $500k of assets? (e.g. cannot count my IRA, but can count hers + joint brokerage)

2. If I'm on the title, does that matter (for purposes of asset counting)?

3. The mortgage guy seemed a bit loose on the details regarding relationship pricing, but basically said it would show up later in the process.

The part that concerns me is that we have had money at Merrill Edge for 2 mos, so we should at least qualify for Platinum ($400 origination discount). He is seeing no status for preferred rewards (which contradicts what I was initially told). Thoughts?

4. Is the 500k strictly "NEW" money? Should my ~100k in Merrill Edge for 2 mos. count?
I have the exact same situation. Can someone shed the light on this one pls?
Well I got an answer from Wells Fargo for such question. If you have shared account(s), they will consider your half share in everything that has both of your name. For example, 100K brokerage on spouse accounts will have 50K each.
It looks like its better to get a loan on both spouse name rather one to make the process simple.
bleuspeed
Posts: 14
Joined: Sat Nov 25, 2017 5:33 pm

Re: Relationship mortgage discounts for moving a million assets

Post by bleuspeed »

proudowner333 wrote: Thu Jan 27, 2022 11:35 am
DEBTINATOR wrote: Wed Jun 05, 2019 10:56 am Question for those that have done this before. My wife has an 810 credit score. I don't know, but suspect I'm closer to 780-800 (they use the mortgage lending model which is hard to find w/out paying myFICO.com). I may add myself but it'll reduce lender credits and possibly rate, which kind of defeats the purpose of moving the money in the first place.

My questions:

1. If my wife was alone on the mortgage, does that mean only her assets can count toward the $500k of assets? (e.g. cannot count my IRA, but can count hers + joint brokerage)

2. If I'm on the title, does that matter (for purposes of asset counting)?

3. The mortgage guy seemed a bit loose on the details regarding relationship pricing, but basically said it would show up later in the process.

The part that concerns me is that we have had money at Merrill Edge for 2 mos, so we should at least qualify for Platinum ($400 origination discount). He is seeing no status for preferred rewards (which contradicts what I was initially told). Thoughts?

4. Is the 500k strictly "NEW" money? Should my ~100k in Merrill Edge for 2 mos. count?
I have the exact same situation. Can someone shed the light on this one pls?
You should check with the bank about their score tiers. Depending on how the bank does their credit score tiers, you both might still be in the same bucket. I have had similar situations too at various points but was told it’s not a big deal as long as you are >780. Keep in mind that the monthly debt-to-income ratio also is a big factor they look at. So if only one of you go on the application then the monthly income would likely also be reduced. That would likely reduce the maximum house price they would be willing to give you a mortgage for as well. I would think it’s probably easier for you to improve your score in the long run even with a higher rate and refinance at some point by applying as a couple, rather than get a smaller or less than ideal neighborhood house due to having only one applicant.
Savingscaptain
Posts: 115
Joined: Sun Oct 11, 2020 4:31 am

Re: Relationship mortgage discounts for moving a million assets

Post by Savingscaptain »

SobeCane wrote: Fri Nov 19, 2021 9:38 pm 30 Year Fixed Jumbo Loan for Primary Residence 20% down and 800+ credit score:

Bank of America 2.75% with 1/8 discount for each $250k

Wells Fargo 2.85% with 1/8 discount for each $250k


Before I go with BOA, does anyone think it can be beat?
Wells beats BA any day
Savingscaptain
Posts: 115
Joined: Sun Oct 11, 2020 4:31 am

Re: Relationship mortgage discounts for moving a million assets

Post by Savingscaptain »

Been away from this thread a while a couple tricks I learned in the closing process:

While lender credit is one thing, you can have your loan match all the lender fees from another lender so your credit goes further.

I saved about $700 on origination, $2200 on other fees like express docs fee etc.

Escrow fee: I went with lenders preferred escrow but made them match other escrow: saved about $900

Title insurance, made the title company shop this and match other rates as well as their own fee.

Overall I had a net savings of about $6.5k (some fees are loan amount dependent). That was just money that went towards prepaids and reduced cash needed which in turn allowed me to buy some automation gadgets
proudowner333
Posts: 90
Joined: Sun Jan 16, 2022 6:50 pm

Re: Relationship mortgage discounts for moving a million assets

Post by proudowner333 »

Savingscaptain wrote: Sun Jan 30, 2022 11:31 am Been away from this thread a while a couple tricks I learned in the closing process:

While lender credit is one thing, you can have your loan match all the lender fees from another lender so your credit goes further.

I saved about $700 on origination, $2200 on other fees like express docs fee etc.

Escrow fee: I went with lenders preferred escrow but made them match other escrow: saved about $900

Title insurance, made the title company shop this and match other rates as well as their own fee.

Overall I had a net savings of about $6.5k (some fees are loan amount dependent). That was just money that went towards prepaids and reduced cash needed which in turn allowed me to buy some automation gadgets
Thanks for the valuable input. Really helpful as I am starting my negotiation with few lenders.
proudowner333
Posts: 90
Joined: Sun Jan 16, 2022 6:50 pm

Re: Relationship mortgage discounts for moving a million assets

Post by proudowner333 »

I had call with WellsFargo and they said they can only match rate after the relationship discount (for example if I am getting 3 % rate after discount) then they will look at other lender rate and if its lower than that they will match or beat it.
This is almost impossible in this market to match or beat the rate after discount.
Any tips or tricks to negotiate hard to lower down my rate?
shanghaibebop
Posts: 1
Joined: Tue Feb 01, 2022 6:24 pm

Re: Relationship mortgage discounts for moving a million assets

Post by shanghaibebop »

proudowner333 wrote: Tue Feb 01, 2022 5:40 pm I had call with WellsFargo and they said they can only match rate after the relationship discount (for example if I am getting 3 % rate after discount) then they will look at other lender rate and if its lower than that they will match or beat it.
This is almost impossible in this market to match or beat the rate after discount.
Any tips or tricks to negotiate hard to lower down my rate?
You have to get them to match before you ask them about the relationship discount. I just finished this process, unfortunately caught the tail end of the bump in December, but am looking to close at 2.5% on 30 yr fix refi after .5% discount on 1MM asset.
proudowner333
Posts: 90
Joined: Sun Jan 16, 2022 6:50 pm

Re: Relationship mortgage discounts for moving a million assets

Post by proudowner333 »

shanghaibebop wrote: Tue Feb 01, 2022 6:26 pm
proudowner333 wrote: Tue Feb 01, 2022 5:40 pm I had call with WellsFargo and they said they can only match rate after the relationship discount (for example if I am getting 3 % rate after discount) then they will look at other lender rate and if its lower than that they will match or beat it.
This is almost impossible in this market to match or beat the rate after discount.
Any tips or tricks to negotiate hard to lower down my rate?
You have to get them to match before you ask them about the relationship discount. I just finished this process, unfortunately caught the tail end of the bump in December, but am looking to close at 2.5% on 30 yr fix refi after .5% discount on 1MM asset.
Ah I made a mistake by asking that first :(
proudowner333
Posts: 90
Joined: Sun Jan 16, 2022 6:50 pm

Re: Relationship mortgage discounts for moving a million assets

Post by proudowner333 »

proudowner333 wrote: Tue Feb 01, 2022 6:53 pm
shanghaibebop wrote: Tue Feb 01, 2022 6:26 pm
proudowner333 wrote: Tue Feb 01, 2022 5:40 pm I had call with WellsFargo and they said they can only match rate after the relationship discount (for example if I am getting 3 % rate after discount) then they will look at other lender rate and if its lower than that they will match or beat it.
This is almost impossible in this market to match or beat the rate after discount.
Any tips or tricks to negotiate hard to lower down my rate?
You have to get them to match before you ask them about the relationship discount. I just finished this process, unfortunately caught the tail end of the bump in December, but am looking to close at 2.5% on 30 yr fix refi after .5% discount on 1MM asset.
Ah I made a mistake by asking that first :(
And I sent my application too otherwise I would have talked to other mortgage agent in WF :(
krillnu
Posts: 8
Joined: Sat Nov 20, 2021 8:37 am

Re: Relationship mortgage discounts for moving a million assets

Post by krillnu »

proudowner333 wrote: Tue Feb 01, 2022 6:55 pm
proudowner333 wrote: Tue Feb 01, 2022 6:53 pm
shanghaibebop wrote: Tue Feb 01, 2022 6:26 pm
proudowner333 wrote: Tue Feb 01, 2022 5:40 pm I had call with WellsFargo and they said they can only match rate after the relationship discount (for example if I am getting 3 % rate after discount) then they will look at other lender rate and if its lower than that they will match or beat it.
This is almost impossible in this market to match or beat the rate after discount.
Any tips or tricks to negotiate hard to lower down my rate?
You have to get them to match before you ask them about the relationship discount. I just finished this process, unfortunately caught the tail end of the bump in December, but am looking to close at 2.5% on 30 yr fix refi after .5% discount on 1MM asset.
Ah I made a mistake by asking that first :(
And I sent my application too otherwise I would have talked to other mortgage agent in WF :(
Are you looking for a relationship discount based on existing assets with them, or moving new assets over? If it’s new money you have leverage - ask them if they can match the competitor’s rate, and if they do, then move new money over for the relationship discount. If they don’t, you can go with the other loan provider (or signal that you will, and if they don’t match you can decide whether to still go ahead with WF). This is assuming the competitor rate doesn’t have a relationship discount explicitly written into the loan estimate terms.
Topic Author
softwaregeek
Posts: 951
Joined: Wed May 08, 2019 8:59 pm

Re: Relationship mortgage discounts for moving a million assets

Post by softwaregeek »

proudowner333 wrote: Thu Jan 27, 2022 11:35 am
DEBTINATOR wrote: Wed Jun 05, 2019 10:56 am Question for those that have done this before. My wife has an 810 credit score. I don't know, but suspect I'm closer to 780-800 (they use the mortgage lending model which is hard to find w/out paying myFICO.com). I may add myself but it'll reduce lender credits and possibly rate, which kind of defeats the purpose of moving the money in the first place.

My questions:

1. If my wife was alone on the mortgage, does that mean only her assets can count toward the $500k of assets? (e.g. cannot count my IRA, but can count hers + joint brokerage)

2. If I'm on the title, does that matter (for purposes of asset counting)?

3. The mortgage guy seemed a bit loose on the details regarding relationship pricing, but basically said it would show up later in the process.

The part that concerns me is that we have had money at Merrill Edge for 2 mos, so we should at least qualify for Platinum ($400 origination discount). He is seeing no status for preferred rewards (which contradicts what I was initially told). Thoughts?

4. Is the 500k strictly "NEW" money? Should my ~100k in Merrill Edge for 2 mos. count?
I have the exact same situation. Can someone shed the light on this one pls?
If you have a credit card with some major banks they give you a score for free. I get them from chase and BofA. But pay the thirty dollars or so. Coworker ended up paying an extra percent on the mortgage because macys had put some random thing on her credit. She’s cleaned it up and ready to refi, but rates are up. Whole thing probably cost her $50k because she didn’t pull her own credit.
proudowner333
Posts: 90
Joined: Sun Jan 16, 2022 6:50 pm

Re: Relationship mortgage discounts for moving a million assets

Post by proudowner333 »

Looking for a suggestion.
I locked my rate with WF and got the rate of 2.875% (2.922% APR) after relationship discount. I tried to negotiate hard to get some credit in my closing cost but could not do anything. WF contact said if I bring competitive rate from other lender, they can match or do something to keep my business with them.
I am thinking of taking this offer to Chase to see if they can beat it and get me any better offer.
Anyone have Chase contact who is willing to negotiate and work with his/her management to get me a better deal?
Do you guys have any other recommendation to take this rate to other lender who you think can negotiate to earn more business?
proudowner333
Posts: 90
Joined: Sun Jan 16, 2022 6:50 pm

Re: Relationship mortgage discounts for moving a million assets

Post by proudowner333 »

proudowner333 wrote: Tue Feb 08, 2022 11:30 pm Looking for a suggestion.
I locked my rate with WF and got the rate of 2.875% (2.922% APR) after relationship discount. I tried to negotiate hard to get some credit in my closing cost but could not do anything. WF contact said if I bring competitive rate from other lender, they can match or do something to keep my business with them.
I am thinking of taking this offer to Chase to see if they can beat it and get me any better offer.
Anyone have Chase contact who is willing to negotiate and work with his/her management to get me a better deal?
Do you guys have any other recommendation to take this rate to other lender who you think can negotiate to earn more business?
Any thoughts/ suggestion ?
gougou
Posts: 1317
Joined: Thu Sep 28, 2017 7:42 pm

Re: Relationship mortgage discounts for moving a million assets

Post by gougou »

proudowner333 wrote: Wed Feb 09, 2022 11:05 pm
proudowner333 wrote: Tue Feb 08, 2022 11:30 pm Looking for a suggestion.
I locked my rate with WF and got the rate of 2.875% (2.922% APR) after relationship discount. I tried to negotiate hard to get some credit in my closing cost but could not do anything. WF contact said if I bring competitive rate from other lender, they can match or do something to keep my business with them.
I am thinking of taking this offer to Chase to see if they can beat it and get me any better offer.
Anyone have Chase contact who is willing to negotiate and work with his/her management to get me a better deal?
Do you guys have any other recommendation to take this rate to other lender who you think can negotiate to earn more business?
Any thoughts/ suggestion ?
Chase has never been competitive for me. Maybe try Bank of America.
The sillier the market’s behavior, the greater the opportunity for the business like investor.
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