Relationship mortgage discounts for moving a million assets

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Savingscaptain
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Re: Relationship mortgage discounts for moving a million assets

Post by Savingscaptain »

investorhead wrote: Thu Oct 15, 2020 2:21 pm
Savingscaptain wrote: Thu Oct 15, 2020 11:11 am
investorhead wrote: Thu Oct 15, 2020 10:54 am I'm getting quoted 2.875% 10/1, interest-only, no points/closing costs/other fees/etc at WF w/ $1M assets moved over.
They can do better. I also learned a trick, lock a regular 10/1 (it apparently locks a pricing tier). Apply your relationship discount, then ask for product switchnto 10/1 interest only. You will get a lower rate as your pricing tier will be better.

It's like you go to a car dealership and just walk in to buy a car, vs do your research get your discount certificates, loan approval etc and then just negotiate before ever walking in.
Thanks -- just want to make sure I understand. You're saying I should lock in a regular 10/1, then ask to switch to a 10/1 interest only and that should give me a better rate? I'm already getting the relationship discount, just trying to understand what the trick is....
Ya the LO told me the pricing is like a tier, tier 1, 2 ,3 etc. If you are locked into a tier all product changes happen in that tier. IO loans tend to get a tier lower than regular jumbo. I unfortunately couldn't meet 1M post purchase for IO so not doing it.
Savingscaptain
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Re: Relationship mortgage discounts for moving a million assets

Post by Savingscaptain »

fyre4ce wrote: Thu Oct 15, 2020 1:07 pm
Savingscaptain wrote: Thu Oct 15, 2020 10:33 am
fyre4ce wrote: Mon Sep 28, 2020 5:12 pm
Goal33 wrote: Mon Sep 28, 2020 4:55 pm
fyre4ce wrote: Mon Sep 28, 2020 4:53 pm I just locked a 2.375% with 0.5 points on a 30 year fixed with Wells Fargo, on a jumbo loan in California. That includes 0.375% relationship discount for $750k+ in relationship assets. Could have gone another 0.125% lower with another $250k in qualifying assets.
Just curious, how big is your jumbo? if its 800k or so, you might find it more favorable to just get a smaller loan at 765k and get that rate without paying points with one of the lenders noted in the refinance mega thread.
$1.5M :shock:

I'm also getting a rebate from my agent that I need to soak up. I'll probably end up at 2.25% with 1.0 points.

I signed the letter of intent today, but if someone knows of a better deal, it's not too late to unwind this deal.
Did you close yet? If not I would look for another WF loan officer your file will transfer as is. You can get much better rate if you have 800+ credit.
Can you give any evidence to support the "much better deal"? I thought 2.25% with 1 point on a 30 year fixed was screaming. I also can't meet $1M in asset transfers without using a gift, which they do not allow. Was able to do $750k though. PM me please if you know something I don't.
Evidence? No, not without posting my loan letter. What was your pre-relationship rate? If it was higher than 2.75, you are locked in higher. My base 30 year was 2.75 at -.125 points. I am now going through a 10/1 switch (not enough assets for IO). 10/1 should come in at 1.750 with -.375 points when all is said and done as the rates are now lower then when I locked so get slightly more credit.
fyre4ce
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Re: Relationship mortgage discounts for moving a million assets

Post by fyre4ce »

Savingscaptain wrote: Thu Oct 15, 2020 10:50 pm
fyre4ce wrote: Thu Oct 15, 2020 1:07 pm
Savingscaptain wrote: Thu Oct 15, 2020 10:33 am
fyre4ce wrote: Mon Sep 28, 2020 5:12 pm
Goal33 wrote: Mon Sep 28, 2020 4:55 pm

Just curious, how big is your jumbo? if its 800k or so, you might find it more favorable to just get a smaller loan at 765k and get that rate without paying points with one of the lenders noted in the refinance mega thread.
$1.5M :shock:

I'm also getting a rebate from my agent that I need to soak up. I'll probably end up at 2.25% with 1.0 points.

I signed the letter of intent today, but if someone knows of a better deal, it's not too late to unwind this deal.
Did you close yet? If not I would look for another WF loan officer your file will transfer as is. You can get much better rate if you have 800+ credit.
Can you give any evidence to support the "much better deal"? I thought 2.25% with 1 point on a 30 year fixed was screaming. I also can't meet $1M in asset transfers without using a gift, which they do not allow. Was able to do $750k though. PM me please if you know something I don't.
Evidence? No, not without posting my loan letter. What was your pre-relationship rate? If it was higher than 2.75, you are locked in higher. My base 30 year was 2.75 at -.125 points. I am now going through a 10/1 switch (not enough assets for IO). 10/1 should come in at 1.750 with -.375 points when all is said and done as the rates are now lower then when I locked so get slightly more credit.
Technically I locked at 2.75% at +0.625 points, on Sept 29. I'm told that once the relationship discount is applied, I get 0.375 points off the rate, and the points drops to +0.5. So with the relationship rate I'm at 2.375% at +0.5 points. I want to buy around 1 point (to soak a credit from my agent) and I'm hoping for 2.25% with 1.0 point, but I'm being told that until the assets are actually transferred the rate table won't go that low.

How did you lock at 2.75% with -0.125? Was it with Wells Fargo? Did you match rates with them from another lender?
Savingscaptain
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Re: Relationship mortgage discounts for moving a million assets

Post by Savingscaptain »

fyre4ce wrote: Fri Oct 16, 2020 9:11 am
Savingscaptain wrote: Thu Oct 15, 2020 10:50 pm
fyre4ce wrote: Thu Oct 15, 2020 1:07 pm
Savingscaptain wrote: Thu Oct 15, 2020 10:33 am
fyre4ce wrote: Mon Sep 28, 2020 5:12 pm

$1.5M :shock:

I'm also getting a rebate from my agent that I need to soak up. I'll probably end up at 2.25% with 1.0 points.

I signed the letter of intent today, but if someone knows of a better deal, it's not too late to unwind this deal.
Did you close yet? If not I would look for another WF loan officer your file will transfer as is. You can get much better rate if you have 800+ credit.
Can you give any evidence to support the "much better deal"? I thought 2.25% with 1 point on a 30 year fixed was screaming. I also can't meet $1M in asset transfers without using a gift, which they do not allow. Was able to do $750k though. PM me please if you know something I don't.
Evidence? No, not without posting my loan letter. What was your pre-relationship rate? If it was higher than 2.75, you are locked in higher. My base 30 year was 2.75 at -.125 points. I am now going through a 10/1 switch (not enough assets for IO). 10/1 should come in at 1.750 with -.375 points when all is said and done as the rates are now lower then when I locked so get slightly more credit.
Technically I locked at 2.75% at +0.625 points, on Sept 29. I'm told that once the relationship discount is applied, I get 0.375 points off the rate, and the points drops to +0.5. So with the relationship rate I'm at 2.375% at +0.5 points. I want to buy around 1 point (to soak a credit from my agent) and I'm hoping for 2.25% with 1.0 point, but I'm being told that until the assets are actually transferred the rate table won't go that low.

How did you lock at 2.75% with -0.125? Was it with Wells Fargo? Did you match rates with them from another lender?
I found a post on slickdeals. Got a quote from BBVA and they matched it
Topic Author
softwaregeek
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Re: Relationship mortgage discounts for moving a million assets

Post by softwaregeek »

Was this for purchase or refi?
Savingscaptain
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Re: Relationship mortgage discounts for moving a million assets

Post by Savingscaptain »

softwaregeek wrote: Sat Oct 17, 2020 11:08 pm Was this for purchase or refi?
Purchase. Refi has some solid deals but you need 500k or more
sp226
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Re: Relationship mortgage discounts for moving a million assets

Post by sp226 »

I'm in year 8 of a 15 yr 3% mortgage with about $425K balance.
Looked around but couldn't find any refi that made sense after fees, but that was without relationship discount.
Most of the movable funds are in TD Ameritrade and VG, $3M+.
Any bank that you know where a refi of a mid-term 3% mortgage might make sense?
Savingscaptain
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Re: Relationship mortgage discounts for moving a million assets

Post by Savingscaptain »

sp226 wrote: Sun Oct 18, 2020 4:14 pm I'm in year 8 of a 15 yr 3% mortgage with about $425K balance.
Looked around but couldn't find any refi that made sense after fees, but that was without relationship discount.
Most of the movable funds are in TD Ameritrade and VG, $3M+.
Any bank that you know where a refi of a mid-term 3% mortgage might make sense?
That much assets, morgan stanley or bank of america. 3m+ they will basically give you any rate you want add long as you make your loan amount a jumbo. Take cash out then immediately turn around and pay.
Topic Author
softwaregeek
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Re: Relationship mortgage discounts for moving a million assets

Post by softwaregeek »

For non-jumbo try Schwab bank with asset transfer. They are one of the few to do relationship loans on conforming. You can do whatever is cheapest since you are paying it down so fast. A 7/1 Arm would be perfect.
Topic Author
softwaregeek
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Re: Relationship mortgage discounts for moving a million assets

Post by softwaregeek »

Savingscaptain wrote: Mon Oct 19, 2020 10:22 am
sp226 wrote: Sun Oct 18, 2020 4:14 pm I'm in year 8 of a 15 yr 3% mortgage with about $425K balance.
Looked around but couldn't find any refi that made sense after fees, but that was without relationship discount.
Most of the movable funds are in TD Ameritrade and VG, $3M+.
Any bank that you know where a refi of a mid-term 3% mortgage might make sense?
That much assets, morgan stanley or bank of america. 3m+ they will basically give you any rate you want add long as you make your loan amount a jumbo. Take cash out then immediately turn around and pay.
No, that would be a cash out and would be at a higher rate.
Gum12345
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Re: Relationship mortgage discounts for moving a million assets

Post by Gum12345 »

Savingcaptain,

Where did you get this rate if you don't mind sharing? I just got 1.875% and no point on jumbo 10/1 I/o purchase but with moving $2m over. If I read your rate correctly, you are getting paid 37.5bps and get 1.75?!

10/1 should come in at 1.750 with -.375 points when all is said and done as the rates are now lower then when I locked so get slightly more credit.
Savingscaptain
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Re: Relationship mortgage discounts for moving a million assets

Post by Savingscaptain »

Gum12345 wrote: Tue Oct 20, 2020 11:37 am Savingcaptain,

Where did you get this rate if you don't mind sharing? I just got 1.875% and no point on jumbo 10/1 I/o purchase but with moving $2m over. If I read your rate correctly, you are getting paid 37.5bps and get 1.75?!

10/1 should come in at 1.750 with -.375 points when all is said and done as the rates are now lower then when I locked so get slightly more credit.
I got it at Wells Fargo with 1m asset pre-purchase moved over. Initial rate was with $1500 lender fee which got waived and rates went lower so they charged a 1/8th point fee and gave credit for the rest (standard process apparently). Ended up with the final credit set. Pre relationship, do you have a competing quote? Try bbva
Gum12345
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Re: Relationship mortgage discounts for moving a million assets

Post by Gum12345 »

Savingscaptain wrote: Tue Oct 20, 2020 2:08 pm
Gum12345 wrote: Tue Oct 20, 2020 11:37 am Savingcaptain,

Where did you get this rate if you don't mind sharing? I just got 1.875% and no point on jumbo 10/1 I/o purchase but with moving $2m over. If I read your rate correctly, you are getting paid 37.5bps and get 1.75?!

10/1 should come in at 1.750 with -.375 points when all is said and done as the rates are now lower then when I locked so get slightly more credit.
I got it at Wells Fargo with 1m asset pre-purchase moved over. Initial rate was with $1500 lender fee which got waived and rates went lower so they charged a 1/8th point fee and gave credit for the rest (standard process apparently). Ended up with the final credit set. Pre relationship, do you have a competing quote? Try bbva
Where are you based? Can you share LO contact?
pduan87
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Re: Relationship mortgage discounts for moving a million assets

Post by pduan87 »

Wanted to share a data point.

Went with WF, $1.4M loan, 80% LTV, 30 year fixed, 3% (pre-relationship), with 0.625% credit, no points. Previously, the best rate they could get was 0.375% credit, but I matched with BBVA which got the additional 0.25% credit.

Our mortgage agent has been amazing, super responsive and on top of things. PM for her contact info.
fyre4ce
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Re: Relationship mortgage discounts for moving a million assets

Post by fyre4ce »

In escrow with WF, I reached out to BBVA to see if they would give me a good base rate I could use to leverage, but their rates were not good: 3.5% with 0.125 credit, or 3.25% with 0.875 points. Still tracking to a rate around 2.25% at 1 point, but hasn't been finalized until assets are moved.
Savingscaptain
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Re: Relationship mortgage discounts for moving a million assets

Post by Savingscaptain »

LFKB wrote: Mon Sep 28, 2020 5:27 pm When I Refi’d with BofA I got 0.5% off for moving over $1M the first time, then 0.25% off my second refi for adding another $500k (which was the max amount / discount). They also gave me a total of about $7k in cash incentives for moving the assets over, so long as I left them there for 9 months.

Currently at 2.375% on a 10 year jumbo interest only
Can you provide details of the 7k imcentive? I might move money there now that the loan is closed to get some incentives.
Savingscaptain
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Re: Relationship mortgage discounts for moving a million assets

Post by Savingscaptain »

fyre4ce wrote: Wed Oct 21, 2020 10:27 am In escrow with WF, I reached out to BBVA to see if they would give me a good base rate I could use to leverage, but their rates were not good: 3.5% with 0.125 credit, or 3.25% with 0.875 points. Still tracking to a rate around 2.25% at 1 point, but hasn't been finalized until assets are moved.
Bbva has terrible advertised rates. You have to find a loan officer willing to submit your quote to pricing team to beat.
LFKB
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Re: Relationship mortgage discounts for moving a million assets

Post by LFKB »

Savingscaptain wrote: Wed Oct 21, 2020 2:05 pm
LFKB wrote: Mon Sep 28, 2020 5:27 pm When I Refi’d with BofA I got 0.5% off for moving over $1M the first time, then 0.25% off my second refi for adding another $500k (which was the max amount / discount). They also gave me a total of about $7k in cash incentives for moving the assets over, so long as I left them there for 9 months.

Currently at 2.375% on a 10 year jumbo interest only
Can you provide details of the 7k imcentive? I might move money there now that the loan is closed to get some incentives.
I don't recall all the particulars but it was something like this

Move $2M over (my account) - $4k
Move $400k over (Wife's account) - $900
Move multiple IRAs over - $500
Mover over $700k (this was later) - $1k
sp226
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Re: Relationship mortgage discounts for moving a million assets

Post by sp226 »

LFKB wrote: Thu Oct 22, 2020 11:53 am
Savingscaptain wrote: Wed Oct 21, 2020 2:05 pm
LFKB wrote: Mon Sep 28, 2020 5:27 pm When I Refi’d with BofA I got 0.5% off for moving over $1M the first time, then 0.25% off my second refi for adding another $500k (which was the max amount / discount). They also gave me a total of about $7k in cash incentives for moving the assets over, so long as I left them there for 9 months.

Currently at 2.375% on a 10 year jumbo interest only
Can you provide details of the 7k imcentive? I might move money there now that the loan is closed to get some incentives.
I don't recall all the particulars but it was something like this

Move $2M over (my account) - $4k
Move $400k over (Wife's account) - $900
Move multiple IRAs over - $500
Mover over $700k (this was later) - $1k
Unrelated but looking to move assets to a brokerage in response to promo.
Etrade is $2500 for $1M. If you talk to a new account rep, they may offer to stack the offers (ie $5000 for $2M, etc)
oracle101
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Re: Relationship mortgage discounts for moving a million assets

Post by oracle101 »

Does anyone have suggestions for jumbo loan lenders that are NOT wells fargo. I used them last time and want to avoid banking with them because they are horrible

Will First Republic meet Wells Fargo rate with $1M relationship discount?
Savingscaptain
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Re: Relationship mortgage discounts for moving a million assets

Post by Savingscaptain »

oracle101 wrote: Sat Oct 24, 2020 3:58 pm Does anyone have suggestions for jumbo loan lenders that are NOT wells fargo. I used them last time and want to avoid banking with them because they are horrible

Will First Republic meet Wells Fargo rate with $1M relationship discount?
I was in the same boat as you, and hoping chase or another lender could beat, for a new purchase, no one can come close.
Bobby206
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Re: Relationship mortgage discounts for moving a million assets

Post by Bobby206 »

oracle101 wrote: Sat Oct 24, 2020 3:58 pm Does anyone have suggestions for jumbo loan lenders that are NOT wells fargo. I used them last time and want to avoid banking with them because they are horrible

Will First Republic meet Wells Fargo rate with $1M relationship discount?
I recently worked with Zions who has subsidiaries in different states. .5% off for moving $750k over to brokerage account. No need to have actively managed account or any of that garbage. Just $35 a year fee but it's not a discount brokerage so best for money you don't plan to change investment allocation on. They have 7 and 10 year Arms. Rate was 3.125% (before discount) for jumbo when I used them a couple months ago.
RBON190
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Re: Relationship mortgage discounts for moving a million assets

Post by RBON190 »

Just want to add to this thread our current offer from Chase:
1.2 million loan, 70%LTV
30 year fixed refi
About $1800 total closing costs (includes $800 credit)
3.0% will go to 2.75% after moving $1 million in assets (so 0.25% discount).
We have talked to BofA (not even close), Citi, Fifth Third and CIBC and thus far this is best we can do...
Any feedback would be welcomed! We are going from 3.375% 30 year (just refi into this about 8 months ago from an ARM).
grp2c
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Re: Relationship mortgage discounts for moving a million assets

Post by grp2c »

Can you get BOA, citi, wells, schwab to match chase's 3.0%. If so the 1 million relationship will get you a lower interest rate. Just make sure you get it in writing that you can do the pricematch and relationship.
lucky_tech_guy
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Re: Relationship mortgage discounts for moving a million assets

Post by lucky_tech_guy »

I'm at 2.625% after relationship discount on a 7/1 I/O ARM through BofA. $1.925M loan on a $3.05M property.

I've talked to Chase, Schwab, BofA and Wells, and I can't seem to do any better than that. Anyone got anything better?
Savingscaptain
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Re: Relationship mortgage discounts for moving a million assets

Post by Savingscaptain »

lucky_tech_guy wrote: Wed Oct 28, 2020 12:51 am I'm at 2.625% after relationship discount on a 7/1 I/O ARM through BofA. $1.925M loan on a $3.05M property.

I've talked to Chase, Schwab, BofA and Wells, and I can't seem to do any better than that. Anyone got anything better?

try WF. thats attrocious pricing for a 7/1.
Savingscaptain
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Re: Relationship mortgage discounts for moving a million assets

Post by Savingscaptain »

RBON190 wrote: Tue Oct 27, 2020 4:09 pm Just want to add to this thread our current offer from Chase:
1.2 million loan, 70%LTV
30 year fixed refi
About $1800 total closing costs (includes $800 credit)
3.0% will go to 2.75% after moving $1 million in assets (so 0.25% discount).
We have talked to BofA (not even close), Citi, Fifth Third and CIBC and thus far this is best we can do...
Any feedback would be welcomed! We are going from 3.375% 30 year (just refi into this about 8 months ago from an ARM).
Get that quote to WF they will match hand over fist. right now its best to get a 10/1. Also if you move the $1 WF will discount rate by 0.50.
BuckeyeState
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Re: Relationship mortgage discounts for moving a million assets

Post by BuckeyeState »

I am in the process of purchasing a home (to be my primary residence). My offer on a 30 year fixed jumbo from Wells Fargo is 2.625% with no points. Has anyone been able to get a better deal than this? The Wells Fargo mortgage rates page just updated today and shows 2.875% for a jumbo (possibly with some points), but my rep is telling me she can't go any lower than 2.625% no matter what, even with the relationship discount. Anyone else hearing the same thing?
RBON190
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Re: Relationship mortgage discounts for moving a million assets

Post by RBON190 »

Savingscaptain wrote: Wed Oct 28, 2020 7:16 pm
RBON190 wrote: Tue Oct 27, 2020 4:09 pm Just want to add to this thread our current offer from Chase:
1.2 million loan, 70%LTV
30 year fixed refi
About $1800 total closing costs (includes $800 credit)
3.0% will go to 2.75% after moving $1 million in assets (so 0.25% discount).
We have talked to BofA (not even close), Citi, Fifth Third and CIBC and thus far this is best we can do...
Any feedback would be welcomed! We are going from 3.375% 30 year (just refi into this about 8 months ago from an ARM).
Get that quote to WF they will match hand over fist. right now its best to get a 10/1. Also if you move the $1 WF will discount rate by 0.50.
So far, I have not heard back from our WF guy. We currently have our mortgage with them. Perhaps they can’t/won’t beat it because we already used a relationship discount on our current rate (but have since moved all monies back out)....?
Savingscaptain
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Re: Relationship mortgage discounts for moving a million assets

Post by Savingscaptain »

RBON190 wrote: Thu Oct 29, 2020 6:20 am
Savingscaptain wrote: Wed Oct 28, 2020 7:16 pm
RBON190 wrote: Tue Oct 27, 2020 4:09 pm Just want to add to this thread our current offer from Chase:
1.2 million loan, 70%LTV
30 year fixed refi
About $1800 total closing costs (includes $800 credit)
3.0% will go to 2.75% after moving $1 million in assets (so 0.25% discount).
We have talked to BofA (not even close), Citi, Fifth Third and CIBC and thus far this is best we can do...
Any feedback would be welcomed! We are going from 3.375% 30 year (just refi into this about 8 months ago from an ARM).
Get that quote to WF they will match hand over fist. right now its best to get a 10/1. Also if you move the $1 WF will discount rate by 0.50.
So far, I have not heard back from our WF guy. We currently have our mortgage with them. Perhaps they can’t/won’t beat it because we already used a relationship discount on our current rate (but have since moved all monies back out)....?
Sent you my guy
RBON190
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Re: Relationship mortgage discounts for moving a million assets

Post by RBON190 »

Savingscaptain wrote: Thu Oct 29, 2020 12:04 pm
RBON190 wrote: Thu Oct 29, 2020 6:20 am
Savingscaptain wrote: Wed Oct 28, 2020 7:16 pm
RBON190 wrote: Tue Oct 27, 2020 4:09 pm Just want to add to this thread our current offer from Chase:
1.2 million loan, 70%LTV
30 year fixed refi
About $1800 total closing costs (includes $800 credit)
3.0% will go to 2.75% after moving $1 million in assets (so 0.25% discount).
We have talked to BofA (not even close), Citi, Fifth Third and CIBC and thus far this is best we can do...
Any feedback would be welcomed! We are going from 3.375% 30 year (just refi into this about 8 months ago from an ARM).
Get that quote to WF they will match hand over fist. right now its best to get a 10/1. Also if you move the $1 WF will discount rate by 0.50.
So far, I have not heard back from our WF guy. We currently have our mortgage with them. Perhaps they can’t/won’t beat it because we already used a relationship discount on our current rate (but have since moved all monies back out)....?
Sent you my guy
Thanks for that Savingscaptain but I may not need it.

Update and a question for anyone regarding etiquette in this process:

I did hear back from WF just now. They came in a little high but said pricing team could likely match my 3.0% from Chase (I will just send Loan Estimate). They have, as I believe Savingscaptain mentioned above, better relationship discount tiers and will discount 0.125% for every $250,000 moved over up to max 0.50% for $1 million in assets. This would bring us to 2.5% which sounds great.

I did however just lock rate and start application with Chase yesterday (including signing inital loan application package). I have paid nothing and have not sent on any statements etc etc. So, is it a little slimy to now tell Chase to cancel (assuming they will not and cannot match my WF deal)? I did sign an intent to close/proceed letter however I had not heard back from WF until just now......?
grp2c
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Re: Relationship mortgage discounts for moving a million assets

Post by grp2c »

Don't feel slimy about it. Just tell chase you need them to beat wells or you'll have to withdraw the application. It's just business. Remember you're dealing with institutions that routinely settle fraud allegation cases.
RBON190
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Re: Relationship mortgage discounts for moving a million assets

Post by RBON190 »

grp2c wrote: Thu Oct 29, 2020 2:03 pm Don't feel slimy about it. Just tell chase you need them to beat wells or you'll have to withdraw the application. It's just business. Remember you're dealing with institutions that routinely settle fraud allegation cases.
Thanks! Very good points....
spacecadet610
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Re: Relationship mortgage discounts for moving a million assets

Post by spacecadet610 »

Another data point and some advice on best option:

I currently have 3.125% 30 year fixed, loan value $1.45 million.

Chase mortgage gave me 2 options for a 30 year fixed refinance jumbo, after moving in $1 million for relationship discount:

Option 1:
rate 2.375%
0.413 points
APR 2.5855

Option 2:
rate 2.5%
0.121 points
APR 2.6610

How do i evaluate which of the 2 is best option? What would you do? We plan on staying in home probably 15-20 years.
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grabiner
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Re: Relationship mortgage discounts for moving a million assets

Post by grabiner »

spacecadet610 wrote: Sat Oct 31, 2020 2:28 pm Another data point and some advice on best option:

I currently have 3.125% 30 year fixed, loan value $1.45 million.

Chase mortgage gave me 2 options for a 30 year fixed refinance jumbo, after moving in $1 million for relationship discount:

Option 1:
rate 2.375%
0.413 points
APR 2.5855

Option 2:
rate 2.5%
0.121 points
APR 2.6610

How do i evaluate which of the 2 is best option? What would you do? We plan on staying in home probably 15-20 years.
Option 1 is better if you stay even three years. You are paying .292% of the loan amount to save .125% on the interest rate. In three years, you don't quite get back .375% of the loan amount since you are paying down principal, but you get close to that. Usually, 30-year loans charge a full point to get a reduction of .125%, which makes a break-even point around ten years.
Wiki David Grabiner
spacecadet610
Posts: 116
Joined: Sun Aug 26, 2012 1:41 pm

Re: Relationship mortgage discounts for moving a million assets

Post by spacecadet610 »

grabiner wrote: Sat Oct 31, 2020 8:30 pm
spacecadet610 wrote: Sat Oct 31, 2020 2:28 pm Another data point and some advice on best option:

I currently have 3.125% 30 year fixed, loan value $1.45 million.

Chase mortgage gave me 2 options for a 30 year fixed refinance jumbo, after moving in $1 million for relationship discount:

Option 1:
rate 2.375%
0.413 points
APR 2.5855

Option 2:
rate 2.5%
0.121 points
APR 2.6610

How do i evaluate which of the 2 is best option? What would you do? We plan on staying in home probably 15-20 years.
Option 1 is better if you stay even three years. You are paying .292% of the loan amount to save .125% on the interest rate. In three years, you don't quite get back .375% of the loan amount since you are paying down principal, but you get close to that. Usually, 30-year loans charge a full point to get a reduction of .125%, which makes a break-even point around ten years.
Appreciate the input. Seems like a no- brainer for option 1 then. I guess unless mortgage rates continue to drop and I decide to refinance in less than 3 years; in which case, option 2 would have been better. Probably not worth the risk though of rates jumping higher in next 2 years.

Should I shop around more for better rates or do you think option 1 is the best i can do for a jumbo? i haven't read of any better rates in this forum for 30 yr fixed jumbo refinance rates.
bogleheart2k
Posts: 3
Joined: Sat Oct 31, 2020 11:03 pm

Re: Relationship mortgage discounts for moving a million assets

Post by bogleheart2k »

spacecadet610 wrote: Sat Oct 31, 2020 11:08 pm
grabiner wrote: Sat Oct 31, 2020 8:30 pm
spacecadet610 wrote: Sat Oct 31, 2020 2:28 pm Another data point and some advice on best option:

I currently have 3.125% 30 year fixed, loan value $1.45 million.

Chase mortgage gave me 2 options for a 30 year fixed refinance jumbo, after moving in $1 million for relationship discount:

Option 1:
rate 2.375%
0.413 points
APR 2.5855

Option 2:
rate 2.5%
0.121 points
APR 2.6610

How do i evaluate which of the 2 is best option? What would you do? We plan on staying in home probably 15-20 years.
Option 1 is better if you stay even three years. You are paying .292% of the loan amount to save .125% on the interest rate. In three years, you don't quite get back .375% of the loan amount since you are paying down principal, but you get close to that. Usually, 30-year loans charge a full point to get a reduction of .125%, which makes a break-even point around ten years.
Appreciate the input. Seems like a no- brainer for option 1 then. I guess unless mortgage rates continue to drop and I decide to refinance in less than 3 years; in which case, option 2 would have been better. Probably not worth the risk though of rates jumping higher in next 2 years.

Should I shop around more for better rates or do you think option 1 is the best i can do for a jumbo? i haven't read of any better rates in this forum for 30 yr fixed jumbo refinance rates.
Hi spacecadet610,
Can you share your LO details with me? The best I got so far is 2.75% with WF (jumbo refi + relationship discount).

Thanks
Savingscaptain
Posts: 115
Joined: Sun Oct 11, 2020 4:31 am

Re: Relationship mortgage discounts for moving a million assets

Post by Savingscaptain »

bogleheart2k wrote: Sat Oct 31, 2020 11:20 pm
spacecadet610 wrote: Sat Oct 31, 2020 11:08 pm
grabiner wrote: Sat Oct 31, 2020 8:30 pm
spacecadet610 wrote: Sat Oct 31, 2020 2:28 pm Another data point and some advice on best option:

I currently have 3.125% 30 year fixed, loan value $1.45 million.

Chase mortgage gave me 2 options for a 30 year fixed refinance jumbo, after moving in $1 million for relationship discount:

Option 1:
rate 2.375%
0.413 points
APR 2.5855

Option 2:
rate 2.5%
0.121 points
APR 2.6610

How do i evaluate which of the 2 is best option? What would you do? We plan on staying in home probably 15-20 years.
Option 1 is better if you stay even three years. You are paying .292% of the loan amount to save .125% on the interest rate. In three years, you don't quite get back .375% of the loan amount since you are paying down principal, but you get close to that. Usually, 30-year loans charge a full point to get a reduction of .125%, which makes a break-even point around ten years.
Appreciate the input. Seems like a no- brainer for option 1 then. I guess unless mortgage rates continue to drop and I decide to refinance in less than 3 years; in which case, option 2 would have been better. Probably not worth the risk though of rates jumping higher in next 2 years.

Should I shop around more for better rates or do you think option 1 is the best i can do for a jumbo? i haven't read of any better rates in this forum for 30 yr fixed jumbo refinance rates.
Hi spacecadet610,
Can you share your LO details with me? The best I got so far is 2.75% with WF (jumbo refi + relationship discount).

Thanks
Friend of mine just got a LE for 1.8M@ 75%LTV for 2.750 after price match to BBVA at WF. Relationship will put him at 2.250 with 1M.
bogleheart2k
Posts: 3
Joined: Sat Oct 31, 2020 11:03 pm

Re: Relationship mortgage discounts for moving a million assets

Post by bogleheart2k »

2.25% is amazing!. Can you PM the LO details? I'd like to give a try. (I spoke to BBVA and they quoted me 3.5% :( )
grp2c
Posts: 149
Joined: Sat Mar 08, 2014 4:51 pm

Re: Relationship mortgage discounts for moving a million assets

Post by grp2c »

Savingscaptain wrote: Sun Nov 01, 2020 12:30 pm Friend of mine just got a LE for 1.8M@ 75%LTV for 2.750 after price match to BBVA at WF. Relationship will put him at 2.250 with 1M.
Can you PM the LO details as well.
SFMarc
Posts: 19
Joined: Mon Nov 02, 2020 9:41 pm

Re: Relationship mortgage discounts for moving a million assets

Post by SFMarc »

Savingscaptain wrote: Sun Nov 01, 2020 12:30 pm Friend of mine just got a LE for 1.8M@ 75%LTV for 2.750 after price match to BBVA at WF. Relationship will put him at 2.250 with 1M.
Can you please PM me the LO details too?
Savingscaptain
Posts: 115
Joined: Sun Oct 11, 2020 4:31 am

Re: Relationship mortgage discounts for moving a million assets

Post by Savingscaptain »

Sent pms.

Good banks to get match quotes from for WF:
1. First Republic - 2.99 30yr refi and purchase product with 250k
2. BBVA 1.25 point reduction (use to to buy down rate and match with WF) with 250k
3. Citi rate reduction of .375 with 750k then match with WF.

It also works with reverse, get wf rate, 1M rate reduction then match to BBVA with point credits. Sometimes that works out better

Best rates I know people have found with 1M:
1. 1.75 10/1 ARM purchase
2. 2.25 with -.125 credit for 30yr fixed
3. 2.250 30yr refi <70%LTV
4. 2.500 30 YR fixed for 80%LTV
sgboggle
Posts: 37
Joined: Sat Jan 21, 2012 5:09 pm

Re: Relationship mortgage discounts for moving a million assets

Post by sgboggle »

A Chase loan officer told me that the relationship discount is different for loan amounts above or below $750k, and that new money needs to be moved in for some discounts. For my loan under $750k, being CPC gives 0.125 discount; adding $250k new money gives 0.25 total discount, $500k new money for 0.375, $750k new money for 0.5 discount. vs. for a loan above $750k, $1 million new money would be needed for the 0.5 discount.
Does that match everyone else's experience with Chase? Do these discount offers change, or is it always this same offer?

At what point do transfers into Chase count as "new money"? I have been talking to a loan officer about refinancing, but I haven't yet filled out an application. Do I need to submit an application online before transferring assets? There's a $500 good faith deposit; if my asset transfer posts before I pay that $500, will it still count as "new money"?

When do they ask for the $500 good faith deposit? Can I fill out an application and get a loan estimate before paying the $500?

(I'm also doing the CPC upgrade $2000 bonus offer, so I'm planning to transfer $250k soon anyway; but I want to make sure that the transfer counts as "new money" for the refinance discount. If I do just one $750k transfer, will that work to trigger the CPC upgrade bonus and also count as $750k in new money?)
Savingscaptain
Posts: 115
Joined: Sun Oct 11, 2020 4:31 am

Re: Relationship mortgage discounts for moving a million assets

Post by Savingscaptain »

sgboggle wrote: Fri Nov 06, 2020 11:36 am A Chase loan officer told me that the relationship discount is different for loan amounts above or below $750k, and that new money needs to be moved in for some discounts. For my loan under $750k, being CPC gives 0.125 discount; adding $250k new money gives 0.25 total discount, $500k new money for 0.375, $750k new money for 0.5 discount. vs. for a loan above $750k, $1 million new money would be needed for the 0.5 discount.
Does that match everyone else's experience with Chase? Do these discount offers change, or is it always this same offer?

At what point do transfers into Chase count as "new money"? I have been talking to a loan officer about refinancing, but I haven't yet filled out an application. Do I need to submit an application online before transferring assets? There's a $500 good faith deposit; if my asset transfer posts before I pay that $500, will it still count as "new money"?

When do they ask for the $500 good faith deposit? Can I fill out an application and get a loan estimate before paying the $500?

(I'm also doing the CPC upgrade $2000 bonus offer, so I'm planning to transfer $250k soon anyway; but I want to make sure that the transfer counts as "new money" for the refinance discount. If I do just one $750k transfer, will that work to trigger the CPC upgrade bonus and also count as $750k in new money?)
At that money why not go with Citi or WF? For .375 off?
jfmiii
Posts: 130
Joined: Fri Apr 25, 2014 1:36 pm

Re: Relationship mortgage discounts for moving a million assets

Post by jfmiii »

With the recent rate move, what is everyone getting, pre-discount, from money center banks on 30yr fixed refis?
Savingscaptain
Posts: 115
Joined: Sun Oct 11, 2020 4:31 am

Re: Relationship mortgage discounts for moving a million assets

Post by Savingscaptain »

jfmiii wrote: Fri Nov 06, 2020 12:59 pm With the recent rate move, what is everyone getting, pre-discount, from money center banks on 30yr fixed refis?
Don't think WF has moved much in terms of rate sheet.
muffins14
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Joined: Wed Oct 26, 2016 4:14 am
Location: New York

Re: Relationship mortgage discounts for moving a million assets

Post by muffins14 »

I'm not in the market for buying now, but perhaps in 3-5 years.

I also have a chase credit card (no other accounts at chase currently), and I've had some credit card or checking/savings account with them off and on for about 10 years. I've wanted to close this card in an effort to simplify life, but that would leave me with no relationship at all with most big banks from whom I'd presumably ask for a jumbo mortgage in the future.

Is there a downside to closing this card, assuming that when I do want to buy and get a mortgage, I'm willing to move a lot of assets over to them?
Crom laughs at your Four Winds
User avatar
8foot7
Posts: 4426
Joined: Mon Jan 05, 2015 6:29 pm

Re: Relationship mortgage discounts for moving a million assets

Post by 8foot7 »

muffins14 wrote: Tue Nov 17, 2020 4:06 pm I'm not in the market for buying now, but perhaps in 3-5 years.

I also have a chase credit card (no other accounts at chase currently), and I've had some credit card or checking/savings account with them off and on for about 10 years. I've wanted to close this card in an effort to simplify life, but that would leave me with no relationship at all with most big banks from whom I'd presumably ask for a jumbo mortgage in the future.

Is there a downside to closing this card, assuming that when I do want to buy and get a mortgage, I'm willing to move a lot of assets over to them?
If you’re going to move a million bucks somewhere, having had or not having had a credit card with them won’t make a bit of difference. The million in new money you’re bringing will buy you the relationship
sgboggle
Posts: 37
Joined: Sat Jan 21, 2012 5:09 pm

Re: Relationship mortgage discounts for moving a million assets

Post by sgboggle »

8foot7 wrote: Tue Nov 17, 2020 4:29 pm If you’re going to move a million bucks somewhere, having had or not having had a credit card with them won’t make a bit of difference. The million in new money you’re bringing will buy you the relationship
I interpreted his question more like: To start the conversation with the bank about getting these discounts, do I need to already have an account at the bank?

I'm guessing it doesn't matter, but not sure if that's true for all banks.
Savingscaptain
Posts: 115
Joined: Sun Oct 11, 2020 4:31 am

Re: Relationship mortgage discounts for moving a million assets

Post by Savingscaptain »

sgboggle wrote: Tue Nov 17, 2020 4:43 pm
8foot7 wrote: Tue Nov 17, 2020 4:29 pm If you’re going to move a million bucks somewhere, having had or not having had a credit card with them won’t make a bit of difference. The million in new money you’re bringing will buy you the relationship
I interpreted his question more like: To start the conversation with the bank about getting these discounts, do I need to already have an account at the bank?

I'm guessing it doesn't matter, but not sure if that's true for all banks.
It doesn't martter, they are happy to have your business in any way possible.
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