Relationship mortgage discounts for moving a million assets

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jarjarM
Posts: 2502
Joined: Mon Jul 16, 2018 1:21 pm

Re: Relationship mortgage discounts for moving a million assets

Post by jarjarM »

Cashking wrote: Wed Aug 11, 2021 6:45 pm I’m locked with BofA at 2.375% 30 year fixed for $2.7 million mortgage with approx 65% loan to value. The rate assumes $3m in new money moving to BofA. Has anyone seen lower 30 year fixed rates?
You can try to push schwab on this a bit with the $3mil new money in (they'll also give you a bonus for moving the $$$ over). But 2.375% for 30yr fixed on jumbo is pretty decent so not sure if you'll get anything better.
robocop
Posts: 255
Joined: Fri Jan 27, 2012 8:44 pm

Re: Relationship mortgage discounts for moving a million assets

Post by robocop »

Looking for a new purchase 30 year fixed at lowest rate possible. Purchase price $1.2M, NYC suburb. 20% down.

Anyone have thoughts on who might be best?

And anyone willing to send me their contacts for:

B of A
Wells Fargo
Citi
Chase
Quicken/Scwhab
First Republic
PNC

I also have a decent but not huge amount in savings/brokerage/retirement accounts. Mostly with Vanguard, but one retirement account at Schwab and one at Fidelity. If that affects anything.
aegywn
Posts: 14
Joined: Thu Aug 05, 2021 5:10 pm

Re: Relationship mortgage discounts for moving a million assets

Post by aegywn »

Cosign to robocop's request for good contacts!
gotrojan
Posts: 9
Joined: Mon Jul 05, 2021 1:14 am

Re: Relationship mortgage discounts for moving a million assets

Post by gotrojan »

antmn wrote: Wed Aug 11, 2021 2:27 pm Data point:

Just locked on refinance of primary home with BofA. Worked with their private bank and had them match a competitor. Got a 0.25% rate discount for bringing $500k in assets over to their no fee brokerage (Merrill Edge). Rates below include the new asset discount

Mortgage Balance: $1.7M
Loan type: 10/1 ARM
Rate: 1.75%

Also had the option of a 30 year fixed at 2.375%. But choosing to go with the ARM.

How does the rates for the 10/1 ARM look? Feels like I can't get this any lower but looking for data points to show me otherwise
Was the 30yr 2.375% before or after the $500k discount?
gotrojan
Posts: 9
Joined: Mon Jul 05, 2021 1:14 am

Re: Relationship mortgage discounts for moving a million assets

Post by gotrojan »

Cashking wrote: Wed Aug 11, 2021 6:45 pm I’m locked with BofA at 2.375% 30 year fixed for $2.7 million mortgage with approx 65% loan to value. The rate assumes $3m in new money moving to BofA. Has anyone seen lower 30 year fixed rates?
I’m locked with BofA at 2.625 no points or fees before the relationship discount with 55% LTV. Yours sounds like is at 2.75 with 65% LTV. So seems similar? DM me to discuss.
xerxes101
Posts: 534
Joined: Sat Oct 14, 2017 11:25 am

Re: Relationship mortgage discounts for moving a million assets

Post by xerxes101 »

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
skibummer
Posts: 59
Joined: Wed Aug 07, 2019 5:44 pm

Re: Relationship mortgage discounts for moving a million assets

Post by skibummer »

antmn wrote: Wed Aug 11, 2021 2:22 pm
skibummer wrote: Mon Aug 02, 2021 5:31 pm DP:

I just got 1.99% for a 10 yr fixed for $550K with a 75% LTV cash out refinance with Schwab/Quicken. I was eligible for the 0.5% discount Schwab asset pricing Quicken tier, but this was a better deal than the asset pricing options. Closing costs are covered with Schwab and Quicken credits. No escrow required. Very happy.
Was this on a primary residence?
Yes, primary residence.
skibummer
Posts: 59
Joined: Wed Aug 07, 2019 5:44 pm

Re: Relationship mortgage discounts for moving a million assets

Post by skibummer »

jcricket73 wrote: Wed Aug 11, 2021 6:11 pm Anyone have a good contact for a HELOC? Seems like they're hard to come by these days. I just like having them for liquidity and the pledged asset line feature at Schwab is a PITA to set up (need a separate account, need to take out $70k to start with, etc).
The PAL account at Schwab was an easy online app and took about 3 weeks to set up. I negotiated with Schwab using IBKR margin rates as a competitor and they gave me SOFR+1.25% spread (SOFR is 0.05%, so that is a current APR of 1.3% total) on a LOC of at least $700,000 (with a 70% lend that is a asset balance of $1M). No fees, free wires and the initial withdrawal has to be at least $70,000, but they said you can pull out the $70,000 into your Schwab checking and then transfer back what you don't need. No requirement to keep the initial draw of $70,000 out. Super deal at 1.3% APR. Obviously it is a variable rate, but the best rate I could get for a HELOC was Prime - 0.50% (currently 2.75% APR) from JPM PB and that required $3M+ in the pledge account. The Schwab PAL seems like a much better deal and they were great to work with to set it up.
skibummer
Posts: 59
Joined: Wed Aug 07, 2019 5:44 pm

Re: Relationship mortgage discounts for moving a million assets

Post by skibummer »

skibummer wrote: Fri Aug 13, 2021 8:11 pm
jcricket73 wrote: Wed Aug 11, 2021 6:11 pm Anyone have a good contact for a HELOC? Seems like they're hard to come by these days. I just like having them for liquidity and the pledged asset line feature at Schwab is a PITA to set up (need a separate account, need to take out $70k to start with, etc).
The PAL account at Schwab was an easy online app and took about 3 weeks to set up. I negotiated with Schwab using IBKR margin rates as a competitor and they gave me SOFR+1.25% spread (SOFR is 0.05%, so that is a current APR of 1.3% total) on a LOC of at least $700,000 (with a 70% lend that is a asset balance of $1M). No fees, free wires and the initial withdrawal has to be at least $70,000, but they said you can pull out the $70,000 into your Schwab checking and then transfer back what you don't need. No requirement to keep the initial draw of $70,000 out. Super deal at 1.3% APR. Obviously it is a variable rate, but the best rate I could get for a HELOC was Prime - 0.50% (currently 2.75% APR) from JPM PB and that required $3M+ in the pledge account. The Schwab PAL seems like a much better deal and they were great to work with to set it up.
[ quote fixed by admin LadyGeek]
They also have an unadvertised transfer bonus of $1200 for $500K, $2000 for $1M, and $2500 for $2M, which you can use to fund the PAL.
Average Investor
Posts: 377
Joined: Fri Jul 13, 2012 11:27 am

Re: Relationship mortgage discounts for moving a million assets

Post by Average Investor »

Cashking wrote: Wed Aug 11, 2021 6:45 pm I’m locked with BofA at 2.375% 30 year fixed for $2.7 million mortgage with approx 65% loan to value. The rate assumes $3m in new money moving to BofA. Has anyone seen lower 30 year fixed rates?
That’s a great rate.

FWIW, I locked 2.375% fixed 30 asset-based conforming after discounts at Chase for moving $1M in assets and $50k in cash.

I ended up going with 1.875% fixed 15 asset-based at Schwab with no asset move or cash required. Closing costs were about $3000 on both.
Tomorrow never knows.
Amarecat
Posts: 17
Joined: Mon Aug 27, 2018 10:56 pm

Re: Relationship mortgage discounts for moving a million assets

Post by Amarecat »

I moved assets to chase private client for the relationship discount.

I've already closed on the house. I don't really like the interface and the information from investments doesn't load easily to TurboTax or personal capital. I'd like to consolidate accounts by closing the chase private client brokerage.
Two people from Chase have told me I can do this and it won't effect my mortgage rate which was based on a discount from relationship pricing. Can anyone confirm this?

-paranoid
jcricket73
Posts: 47
Joined: Thu Jan 21, 2021 10:48 am

Re: Relationship mortgage discounts for moving a million assets

Post by jcricket73 »

skibummer wrote: Fri Aug 13, 2021 8:11 pm
jcricket73 wrote: Wed Aug 11, 2021 6:11 pm Anyone have a good contact for a HELOC? Seems like they're hard to come by these days. I just like having them for liquidity and the pledged asset line feature at Schwab is a PITA to set up (need a separate account, need to take out $70k to start with, etc).
The PAL account at Schwab was an easy online app and took about 3 weeks to set up. I negotiated with Schwab using IBKR margin rates as a competitor and they gave me SOFR+1.25% spread (SOFR is 0.05%, so that is a current APR of 1.3% total) on a LOC of at least $700,000 (with a 70% lend that is a asset balance of $1M). No fees, free wires and the initial withdrawal has to be at least $70,000, but they said you can pull out the $70,000 into your Schwab checking and then transfer back what you don't need. No requirement to keep the initial draw of $70,000 out. Super deal at 1.3% APR. Obviously it is a variable rate, but the best rate I could get for a HELOC was Prime - 0.50% (currently 2.75% APR) from JPM PB and that required $3M+ in the pledge account. The Schwab PAL seems like a much better deal and they were great to work with to set it up.
Hey that's great, I'll look into that. Sadly you have to create a new brokerage account that doesn't have transfer in/out (of Schwab) privileges. Not sure why. Morgan Stanley wasn't like that. Wonder why Schwab is like that.
xerxes101
Posts: 534
Joined: Sat Oct 14, 2017 11:25 am

Re: Relationship mortgage discounts for moving a million assets

Post by xerxes101 »

skibummer wrote: Fri Aug 13, 2021 8:14 pm
skibummer wrote: Fri Aug 13, 2021 8:11 pm
jcricket73 wrote: Wed Aug 11, 2021 6:11 pm Anyone have a good contact for a HELOC? Seems like they're hard to come by these days. I just like having them for liquidity and the pledged asset line feature at Schwab is a PITA to set up (need a separate account, need to take out $70k to start with, etc).
The PAL account at Schwab was an easy online app and took about 3 weeks to set up. I negotiated with Schwab using IBKR margin rates as a competitor and they gave me SOFR+1.25% spread (SOFR is 0.05%, so that is a current APR of 1.3% total) on a LOC of at least $700,000 (with a 70% lend that is a asset balance of $1M). No fees, free wires and the initial withdrawal has to be at least $70,000, but they said you can pull out the $70,000 into your Schwab checking and then transfer back what you don't need. No requirement to keep the initial draw of $70,000 out. Super deal at 1.3% APR. Obviously it is a variable rate, but the best rate I could get for a HELOC was Prime - 0.50% (currently 2.75% APR) from JPM PB and that required $3M+ in the pledge account. The Schwab PAL seems like a much better deal and they were great to work with to set it up.
[ quote fixed by admin LadyGeek]
They also have an unadvertised transfer bonus of $1200 for $500K, $2000 for $1M, and $2500 for $2M, which you can use to fund the PAL.
Question for you, can a PAL account at Schwab be linked to an IRA Rollover or does it have to be a taxable account?
Average Investor
Posts: 377
Joined: Fri Jul 13, 2012 11:27 am

Re: Relationship mortgage discounts for moving a million assets

Post by Average Investor »

Amarecat wrote: Sat Aug 14, 2021 6:32 pm I moved assets to chase private client for the relationship discount.

I've already closed on the house. I don't really like the interface and the information from investments doesn't load easily to TurboTax or personal capital. I'd like to consolidate accounts by closing the chase private client brokerage.
Two people from Chase have told me I can do this and it won't effect my mortgage rate which was based on a discount from relationship pricing. Can anyone confirm this?

-paranoid
That’s what Chase told me as well, after close one can move funds out.
Tomorrow never knows.
skibummer
Posts: 59
Joined: Wed Aug 07, 2019 5:44 pm

Re: Relationship mortgage discounts for moving a million assets

Post by skibummer »

xerxes101 wrote: Sun Aug 15, 2021 1:12 pm
skibummer wrote: Fri Aug 13, 2021 8:14 pm
skibummer wrote: Fri Aug 13, 2021 8:11 pm
jcricket73 wrote: Wed Aug 11, 2021 6:11 pm Anyone have a good contact for a HELOC? Seems like they're hard to come by these days. I just like having them for liquidity and the pledged asset line feature at Schwab is a PITA to set up (need a separate account, need to take out $70k to start with, etc).
The PAL account at Schwab was an easy online app and took about 3 weeks to set up. I negotiated with Schwab using IBKR margin rates as a competitor and they gave me SOFR+1.25% spread (SOFR is 0.05%, so that is a current APR of 1.3% total) on a LOC of at least $700,000 (with a 70% lend that is a asset balance of $1M). No fees, free wires and the initial withdrawal has to be at least $70,000, but they said you can pull out the $70,000 into your Schwab checking and then transfer back what you don't need. No requirement to keep the initial draw of $70,000 out. Super deal at 1.3% APR. Obviously it is a variable rate, but the best rate I could get for a HELOC was Prime - 0.50% (currently 2.75% APR) from JPM PB and that required $3M+ in the pledge account. The Schwab PAL seems like a much better deal and they were great to work with to set it up.
[ quote fixed by admin LadyGeek]
They also have an unadvertised transfer bonus of $1200 for $500K, $2000 for $1M, and $2500 for $2M, which you can use to fund the PAL.
Question for you, can a PAL account at Schwab be linked to an IRA Rollover or does it have to be a taxable account?
PAL collateral account has to be a taxable individual, joint or revocable trust account because it is collateral that they can sell to cover the loan if needed. You can't do that with a retirement account such as a IRA.
karwosts
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Joined: Tue Jan 29, 2019 9:42 am

Re: Relationship mortgage discounts for moving a million assets

Post by karwosts »

Who are you all getting in touch with at BoA for the discount for moving assets?

My LO wasn't aware of any discounts like that for moving assets and told me to ask a relationship manager, but she wasn't aware of anything like that either, and just said they can give me $600 for Preferred Rewards, but nothing like a rate reduction in exchange for assets, and just told me to ask my Loan Officer. Does this program have a name or is your LO just making up some deal on the spot?
EnerJi
Posts: 163
Joined: Fri May 27, 2016 5:03 pm

Re: Relationship mortgage discounts for moving a million assets

Post by EnerJi »

antmn wrote: Wed Aug 11, 2021 2:27 pm Data point:

Just locked on refinance of primary home with BofA. Worked with their private bank and had them match a competitor. Got a 0.25% rate discount for bringing $500k in assets over to their no fee brokerage (Merrill Edge). Rates below include the new asset discount

Mortgage Balance: $1.7M
Loan type: 10/1 ARM
Rate: 1.75%

Also had the option of a 30 year fixed at 2.375%. But choosing to go with the ARM.

How does the rates for the 10/1 ARM look? Feels like I can't get this any lower but looking for data points to show me otherwise
2% prior to the discount for moving assets looks spectacular to me. Was that with 0 points? I've locked 2.25% for a 10/1 ARM with zero points from a credit union. I'm rate shopping furiously today but have yet to find anything even close at this point. Would you mind sharing which competitor got down to 2% which allowed BofA to match?
youknowjack
Posts: 3
Joined: Sun Oct 18, 2020 9:07 pm

Re: Relationship mortgage discounts for moving a million assets

Post by youknowjack »

karwosts wrote: Tue Aug 17, 2021 11:47 am Who are you all getting in touch with at BoA for the discount for moving assets?

My LO wasn't aware of any discounts like that for moving assets and told me to ask a relationship manager, but she wasn't aware of anything like that either, and just said they can give me $600 for Preferred Rewards, but nothing like a rate reduction in exchange for assets, and just told me to ask my Loan Officer. Does this program have a name or is your LO just making up some deal on the spot?
The LO is the right person - they should know about it. This document references the program: https://mlaem.fs.ml.com/content/dam/ML/ ... a-f-hr.pdf (footnote 6)
Amarecat
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Joined: Mon Aug 27, 2018 10:56 pm

Re: Relationship mortgage discounts for moving a million assets

Post by Amarecat »

Thanks

Did you actually move the funds out?
Average Investor wrote: Sun Aug 15, 2021 1:14 pm
Amarecat wrote: Sat Aug 14, 2021 6:32 pm I moved assets to chase private client for the relationship discount.

I've already closed on the house. I don't really like the interface and the information from investments doesn't load easily to TurboTax or personal capital. I'd like to consolidate accounts by closing the chase private client brokerage.
Two people from Chase have told me I can do this and it won't effect my mortgage rate which was based on a discount from relationship pricing. Can anyone confirm this?

-paranoid
That’s what Chase told me as well, after close one can move funds out.
Average Investor
Posts: 377
Joined: Fri Jul 13, 2012 11:27 am

Re: Relationship mortgage discounts for moving a million assets

Post by Average Investor »

Amarecat wrote: Fri Aug 20, 2021 1:45 am Thanks

Did you actually move the funds out?
Average Investor wrote: Sun Aug 15, 2021 1:14 pm
Amarecat wrote: Sat Aug 14, 2021 6:32 pm I moved assets to chase private client for the relationship discount.

I've already closed on the house. I don't really like the interface and the information from investments doesn't load easily to TurboTax or personal capital. I'd like to consolidate accounts by closing the chase private client brokerage.
Two people from Chase have told me I can do this and it won't effect my mortgage rate which was based on a discount from relationship pricing. Can anyone confirm this?

-paranoid
That’s what Chase told me as well, after close one can move funds out.
Ended up doing the refi with Rocket instead as no asset move was required and rates were similar. Closing next week!
Tomorrow never knows.
xerxes101
Posts: 534
Joined: Sat Oct 14, 2017 11:25 am

Re: Relationship mortgage discounts for moving a million assets

Post by xerxes101 »

karwosts wrote: Tue Aug 17, 2021 11:47 am Who are you all getting in touch with at BoA for the discount for moving assets?

My LO wasn't aware of any discounts like that for moving assets and told me to ask a relationship manager, but she wasn't aware of anything like that either, and just said they can give me $600 for Preferred Rewards, but nothing like a rate reduction in exchange for assets, and just told me to ask my Loan Officer. Does this program have a name or is your LO just making up some deal on the spot?
Unfortunately, I find B of A LOs to be uninformed and also very busy...I resort to do-it-yourself digging and research.

This is based on my latest understanding:
There is currently a rate reduction deal for moving in *new* assets to Merrill Edge:
250K - <500K ---->0.125% rate red.
500K and above ---->0.25% rate red.
I am not aware of other tiers
newtofire
Posts: 1
Joined: Mon Aug 23, 2021 7:19 pm

Re: Relationship mortgage discounts for moving a million assets

Post by newtofire »

antmn wrote: Wed Aug 11, 2021 2:27 pm Data point:

Just locked on refinance of primary home with BofA. Worked with their private bank and had them match a competitor. Got a 0.25% rate discount for bringing $500k in assets over to their no fee brokerage (Merrill Edge). Rates below include the new asset discount

Mortgage Balance: $1.7M
Loan type: 10/1 ARM
Rate: 1.75%

Also had the option of a 30 year fixed at 2.375%. But choosing to go with the ARM.

How does the rates for the 10/1 ARM look? Feels like I can't get this any lower but looking for data points to show me otherwise
Can you please DM the loan officer's contact at BoFA? The ones I called are quoting 2.75% no fees/points before relationship discount which is 1/8th higher. I am new to the forum and would appreciate contacts at other banks too. I am looking to do a Jumbo refi of my primary home in California
spacecadet610
Posts: 116
Joined: Sun Aug 26, 2012 1:41 pm

Re: Relationship mortgage discounts for moving a million assets

Post by spacecadet610 »

I got the relationship mortgage discount through Chase and moved out all of my assets from Chase right after I got the mortgage.

Once the mortgage is secured, no one cares and no one checks whether the assets stay there.

Amarecat wrote: Fri Aug 20, 2021 1:45 am Thanks

Did you actually move the funds out?
Average Investor wrote: Sun Aug 15, 2021 1:14 pm
Amarecat wrote: Sat Aug 14, 2021 6:32 pm I moved assets to chase private client for the relationship discount.

I've already closed on the house. I don't really like the interface and the information from investments doesn't load easily to TurboTax or personal capital. I'd like to consolidate accounts by closing the chase private client brokerage.
Two people from Chase have told me I can do this and it won't effect my mortgage rate which was based on a discount from relationship pricing. Can anyone confirm this?

-paranoid
That’s what Chase told me as well, after close one can move funds out.
gotrojan
Posts: 9
Joined: Mon Jul 05, 2021 1:14 am

Re: Relationship mortgage discounts for moving a million assets

Post by gotrojan »

Also, are there any promotions for signing up for Meryl lynch / BofA or WellsTrade /WF trading platform?
Topic Author
softwaregeek
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Re: Relationship mortgage discounts for moving a million assets

Post by softwaregeek »

gotrojan wrote: Tue Aug 24, 2021 6:35 pm Also, are there any promotions for signing up for Meryl lynch / BofA or WellsTrade /WF trading platform?
Usually you need a checking account, so bonus with that. Also, Merrill frequently runs bonuses if you google or call them for it.
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 »

newtofire wrote: Mon Aug 23, 2021 7:27 pm
antmn wrote: Wed Aug 11, 2021 2:27 pm Data point:

Just locked on refinance of primary home with BofA. Worked with their private bank and had them match a competitor. Got a 0.25% rate discount for bringing $500k in assets over to their no fee brokerage (Merrill Edge). Rates below include the new asset discount

Mortgage Balance: $1.7M
Loan type: 10/1 ARM
Rate: 1.75%

Also had the option of a 30 year fixed at 2.375%. But choosing to go with the ARM.

How does the rates for the 10/1 ARM look? Feels like I can't get this any lower but looking for data points to show me otherwise
Can you please DM the loan officer's contact at BoFA? The ones I called are quoting 2.75% no fees/points before relationship discount which is 1/8th higher. I am new to the forum and would appreciate contacts at other banks too. I am looking to do a Jumbo refi of my primary home in California
What LTV?
dyangu
Posts: 204
Joined: Wed Nov 03, 2010 4:25 pm

Re: Relationship mortgage discounts for moving a million assets

Post by dyangu »

I learned in my recent experience with BofA that LTV (eg 60% vs 70%) and exact credit score (e.g. 760 vs 800) does make a slight difference. At least for jumbo ARM. When loan size is large, I guess even a 0.25% lender credit on a million $ loan comes to $2500 in credits. If I had planned better, I probably could have gotten my credit score up to 800 and gotten a bit more lender credit, and prepared the house more for the appraisal. We are going to pay down like $10k in order to bring LTV to 60 and get ~$1400 additional lender credit, so pretty good return on that $10k.
I went with BofA 7 yr ARM, 2%, with an additional 0.25% rate discount for moving $500k.
I was unable to get similar rates for 15 yr fixed.
User avatar
Huygens
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Re: Relationship mortgage discounts for moving a million assets

Post by Huygens »

dyangu wrote: Wed Aug 25, 2021 3:15 pm I learned in my recent experience with BofA that LTV (eg 60% vs 70%) and exact credit score (e.g. 760 vs 800) does make a slight difference. At least for jumbo ARM. When loan size is large, I guess even a 0.25% lender credit on a million $ loan comes to $2500 in credits. If I had planned better, I probably could have gotten my credit score up to 800 and gotten a bit more lender credit, and prepared the house more for the appraisal. We are going to pay down like $10k in order to bring LTV to 60 and get ~$1400 additional lender credit, so pretty good return on that $10k.
I went with BofA 7 yr ARM, 2%, with an additional 0.25% rate discount for moving $500k.
I was unable to get similar rates for 15 yr fixed.
Are you suggesting that there's a formula for lender credits based on credit score and loan amount?
There are the haves, have-nots, and have-yachts.
silvergga
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Re: Relationship mortgage discounts for moving a million assets

Post by silvergga »

Just did a $0 cost re-fi for a HCOL area "conforming" loan ($800k). 50% LTV.

30-y fixed 2.25% after transferring some assets.
jkr3
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Re: Relationship mortgage discounts for moving a million assets

Post by jkr3 »

I’m in the Bay Area and got offered 2.375% from Citi on a 30yr fixed, 20% down on $2.4m property, with bringing $500k to Citi. I don’t have the cash for $500k to remain at Citi post close, so am exploring other options.

I’m curious about how you are finding the right person at BofA or Wells to get this information. I’m new to the forum and so would appreciate any DMs with guidance.

And do you know if you can use any of the funds brought to Wells or BofA for down payment, or are they looking only at funds that remain after down payment?

Thanks!
mervinj7
Posts: 2496
Joined: Thu Mar 27, 2014 3:10 pm

Re: Relationship mortgage discounts for moving a million assets

Post by mervinj7 »

jkr3 wrote: Thu Aug 26, 2021 1:49 am I’m in the Bay Area and got offered 2.375% from Citi on a 30yr fixed, 20% down on $2.4m property, with bringing $500k to Citi. I don’t have the cash for $500k to remain at Citi post close, so am exploring other options.

I’m curious about how you are finding the right person at BofA or Wells to get this information. I’m new to the forum and so would appreciate any DMs with guidance.

And do you know if you can use any of the funds brought to Wells or BofA for down payment, or are they looking only at funds that remain after down payment?

Thanks!
For citi, do they permit you to count Roth IRAs or IRAs (if you have any)? That could help meet the asset minimum for you.
jkr3
Posts: 3
Joined: Thu Aug 26, 2021 1:27 am

Re: Relationship mortgage discounts for moving a million assets

Post by jkr3 »

mervinj7 wrote: Thu Aug 26, 2021 12:29 pm
jkr3 wrote: Thu Aug 26, 2021 1:49 am I’m in the Bay Area and got offered 2.375% from Citi on a 30yr fixed, 20% down on $2.4m property, with bringing $500k to Citi. I don’t have the cash for $500k to remain at Citi post close, so am exploring other options.

I’m curious about how you are finding the right person at BofA or Wells to get this information. I’m new to the forum and so would appreciate any DMs with guidance.

And do you know if you can use any of the funds brought to Wells or BofA for down payment, or are they looking only at funds that remain after down payment?

Thanks!
For citi, do they permit you to count Roth IRAs or IRAs (if you have any)? That could help meet the asset minimum for you.
They do. I have a 401(k) (won’t move) and traditional brokerage accounts at E*TRADE and vanguard; I would move some of those if possible, but also need assets in the brokerage to borrow against for the down payment (until I move and sell).
bogleheart2k
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Joined: Sat Oct 31, 2020 11:03 pm

Re: Relationship mortgage discounts for moving a million assets

Post by bogleheart2k »

newtofire wrote: Mon Aug 23, 2021 7:27 pm
antmn wrote: Wed Aug 11, 2021 2:27 pm Data point:

Just locked on refinance of primary home with BofA. Worked with their private bank and had them match a competitor. Got a 0.25% rate discount for bringing $500k in assets over to their no fee brokerage (Merrill Edge). Rates below include the new asset discount

Mortgage Balance: $1.7M
Loan type: 10/1 ARM
Rate: 1.75%

Also had the option of a 30 year fixed at 2.375%. But choosing to go with the ARM.

How does the rates for the 10/1 ARM look? Feels like I can't get this any lower but looking for data points to show me otherwise
Can you please DM the loan officer's contact at BoFA? The ones I called are quoting 2.75% no fees/points before relationship discount which is 1/8th higher. I am new to the forum and would appreciate contacts at other banks too. I am looking to do a Jumbo refi of my primary home in California
Could either of you DM that BofA loan officer's contact? Thanks.
aegywn
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Joined: Thu Aug 05, 2021 5:10 pm

Re: Relationship mortgage discounts for moving a million assets

Post by aegywn »

Hi Folks,

One follow-up question: how long does the money typically need to stay in the account to qualify? I assume you cannot have $0 on Day 0, $1,000,000 on Day 2, and $0 on day 3. Is the timing three months? Six months?

(Thinking of Wells and Citi specifically if that helps)

Thank you!
Last edited by aegywn on Thu Sep 16, 2021 12:52 pm, edited 1 time in total.
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 »

aegywn wrote: Sun Aug 29, 2021 3:39 pm Hi Folks,

One follow-up question: how long does the money typically need to stay in the account to qualify? I assume you cannot have $0 on Day 0, $1,000,000 on Day 2, and $0 on day 3. Is the timing three months? Six months?

(Thinking of Wells and Citi specifically if that helps)

Thank you!
Ya'ir
Usually about a week before to the day after signing, so less than two weeks, but most try to earn a bonus too, so stay longer.
jarjarM
Posts: 2502
Joined: Mon Jul 16, 2018 1:21 pm

Re: Relationship mortgage discounts for moving a million assets

Post by jarjarM »

As softwaregeek mentioned, usually a few week is sufficient but if you want bonus then it maybe 3-6 months depending on bonus condition.
Count of Notre Dame
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Re: Relationship mortgage discounts for moving a million assets

Post by Count of Notre Dame »

Anyone pooling family money or borrowing to do this? I suppose I could take out a HELOC, invest it in a brokerage, then refinance my primary and HELOC (under 80% LTV still) to get a lower rate?
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 »

dyangu wrote: Wed Aug 25, 2021 3:15 pm I learned in my recent experience with BofA that LTV (eg 60% vs 70%) and exact credit score (e.g. 760 vs 800) does make a slight difference. At least for jumbo ARM. When loan size is large, I guess even a 0.25% lender credit on a million $ loan comes to $2500 in credits. If I had planned better, I probably could have gotten my credit score up to 800 and gotten a bit more lender credit, and prepared the house more for the appraisal. We are going to pay down like $10k in order to bring LTV to 60 and get ~$1400 additional lender credit, so pretty good return on that $10k.
I went with BofA 7 yr ARM, 2%, with an additional 0.25% rate discount for moving $500k.
I was unable to get similar rates for 15 yr fixed.
Do you know what the I/O rates were for a higher LTV (~80)?
Amarecat
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Re: Relationship mortgage discounts for moving a million assets

Post by Amarecat »

spacecadet610 wrote: Mon Aug 23, 2021 8:21 pm I got the relationship mortgage discount through Chase and moved out all of my assets from Chase right after I got the mortgage.

Once the mortgage is secured, no one cares and no one checks whether the assets stay there.

Amarecat wrote: Fri Aug 20, 2021 1:45 am Thanks

Did you actually move the funds out?
Average Investor wrote: Sun Aug 15, 2021 1:14 pm
Amarecat wrote: Sat Aug 14, 2021 6:32 pm I moved assets to chase private client for the relationship discount.

I've already closed on the house. I don't really like the interface and the information from investments doesn't load easily to TurboTax or personal capital. I'd like to consolidate accounts by closing the chase private client brokerage.
Two people from Chase have told me I can do this and it won't effect my mortgage rate which was based on a discount from relationship pricing. Can anyone confirm this?

-paranoid
That’s what Chase told me as well, after close one can move funds out.

Thanks!
sc9182
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Re: Relationship mortgage discounts for moving a million assets

Post by sc9182 »

Count of Notre Dame wrote: Mon Aug 30, 2021 10:13 am Anyone pooling family money or borrowing to do this? I suppose I could take out a HELOC, invest it in a brokerage, then refinance my primary and HELOC (under 80% LTV still) to get a lower rate?
Guess you may be able to borrow from family to cross over some of the thresholds towards Relationship discounts. But, you may be better off following - Refinance Mega Thread — the rates are great as it is ..
Count of Notre Dame
Posts: 447
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Re: Relationship mortgage discounts for moving a million assets

Post by Count of Notre Dame »

sc9182 wrote: Tue Aug 31, 2021 9:27 pm
Count of Notre Dame wrote: Mon Aug 30, 2021 10:13 am Anyone pooling family money or borrowing to do this? I suppose I could take out a HELOC, invest it in a brokerage, then refinance my primary and HELOC (under 80% LTV still) to get a lower rate?
Guess you may be able to borrow from family to cross over some of the thresholds towards Relationship discounts. But, you may be better off following - Refinance Mega Thread — the rates are great as it is ..
Thank you for the reply! My mortgage is a jumbo one so most those rates in that thread won't apply to me however.
Count of Notre Dame
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Re: Relationship mortgage discounts for moving a million assets

Post by Count of Notre Dame »

I suppose none of these brokers are allowing cash out refinancing at these great rates? Is there a way around this? Let's say my LTV leaves enough room to take out a HELOC. If I borrow from the HELOC to increase my LTV, then when I refinance my primary mortgage they require that my HELOC is paid off (I know because I just refinanced a few months ago and they required me to close my HELOC) then that would effectively be a cash out refinance indirectly?
Count of Notre Dame
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Re: Relationship mortgage discounts for moving a million assets

Post by Count of Notre Dame »

For anyone interested in cash out refinances, Central Bank offered me a 7 year ARM at 2.625% no points, $2k lender credit. No interest only option available.
flarf
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Re: Relationship mortgage discounts for moving a million assets

Post by flarf »

I had my Wells banker run the numbers last week on a ~50% LTV mortgage for a currently unencumbered property, just out of curiosity. He was able to do a 7yr IO ARM at 2.00% with $1 million of new money (so 2.50% without the relationship discount).
Count of Notre Dame
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Re: Relationship mortgage discounts for moving a million assets

Post by Count of Notre Dame »

Just got a quote from Bank of America, no AUM discounts included -

2.25% 7-yr I/O with $4,275 cost
2.375% 7-yr I/O with $2,800 credit
2.375% 10-yr I/O no credit

Cash out refinance with $500k net of reserves and I/O option with enough net post closing liquidity.
UnderWater
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Re: Relationship mortgage discounts for moving a million assets

Post by UnderWater »

Count of Notre Dame wrote: Wed Sep 01, 2021 4:05 pm Just got a quote from Bank of America, no AUM discounts included -

2.25% 7-yr I/O with $4,275 cost
2.375% 7-yr I/O with $2,800 credit
2.375% 10-yr I/O no credit

Cash out refinance with $500k net of reserves and I/O option with enough net post closing liquidity.
Was this BofA private bank or regular retail? Do you mind messaging me the contact info for your mortgage banker?
drekin
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Re: Relationship mortgage discounts for moving a million assets

Post by drekin »

Count of Notre Dame wrote: Wed Sep 01, 2021 12:47 pm For anyone interested in cash out refinances, Central Bank offered me a 7 year ARM at 2.625% no points, $2k lender credit. No interest only option available.
Maybe a dumb question, but can't you do a regular refinance after a cash-out for lower rates? You could do no-cost on both and still be lower rate than a single cash out where you pay the fees.
Baldrekr
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Location: Seattle, WA

Re: Relationship mortgage discounts for moving a million ass

Post by Baldrekr »

Count of Notre Dame wrote: Wed Sep 01, 2021 4:05 pm Just got a quote from Bank of America, no AUM discounts included -

2.25% 7-yr I/O with $4,275 cost
2.375% 7-yr I/O with $2,800 credit
2.375% 10-yr I/O no credit

Cash out refinance with $500k net of reserves and I/O option with enough net post closing liquidity.
Could you message me contact info for your BoA loan officer? This is a good deal given that it’s before discounts!
Count of Notre Dame
Posts: 447
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Re: Relationship mortgage discounts for moving a million assets

Post by Count of Notre Dame »

drekin wrote: Wed Sep 01, 2021 4:43 pm
Count of Notre Dame wrote: Wed Sep 01, 2021 12:47 pm For anyone interested in cash out refinances, Central Bank offered me a 7 year ARM at 2.625% no points, $2k lender credit. No interest only option available.
Maybe a dumb question, but can't you do a regular refinance after a cash-out for lower rates? You could do no-cost on both and still be lower rate than a single cash out where you pay the fees.
You are right! I suppose refinancing is quick and fairly painless.
bogey44
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Re: Relationship mortgage discounts for moving a million assets

Post by bogey44 »

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.
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