Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Considering ditching my checking account with brick and mortar bank (BoA) in favor of an online high interest checking, most likely through Ally.
I know there's various factors to consider, but I'm specifically interested in how this might affect mortgage rates if I did that through BoA. Now I probably won't be buying a home within the next 5 years, but I currently have a checking account and a credit card with a good 15 years of history. Only looking at closing out the checking, but keeping that history intact has been why I've stuck around so long despite some frustrations with them.
Would I get a sweater deal from Bank of America mortgage for having that history with them and should I then leave it open for that reason? It's never been a high value account, typically <2,000 over the history. Another thing to consider is maybe BoA wouldn't be competitive at all with mortgages vs online banks anyway? (as is the case with it's savings, money market, and CD returns)
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You might get a small break for using direct withdrawal from your account, but you could probably get the same break from any mortgage provider if you let them dip into your account each month for direct payment.
BofA has, I dunno, maybe 100 million customers? How are they going to give a killer deal to each and every one?
When I looked for a mortgage, I just went to a local mortgage broker who had competitive deals from financial institutions all over the country.
So my advice is use an online bank if you want and don't worry about losing out.
"have more than thou showest, | speak less than thou knowest" -- The Fool in King Lear
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B of A isn't going to give you a break on a mortgage because you've had a small account with them for years.
If you were a private banking client (U.S. Trust) -- perhaps -- but you aren't.
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When I shopped for my first mortgage, I got quotes from every bank in the city. The banks I had relationships with were no better than those I did not. However, I learned that it does pay to shop. There was significant differences in rates and terms.
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