Relationship mortgage discounts for moving a million assets

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Startled Cat
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Re: Relationship mortgage discounts for moving a million assets

Post by Startled Cat » Sat Feb 29, 2020 2:47 pm

modernist wrote:
Fri Feb 28, 2020 2:13 am
I've gotten extremely aggressive pricing from Citi.

2.375% on a 10/1 with $1M in assets, no closing credits. Mortgage balance approx $1.5M.

They're also offering a 30-year fixed, where the first ten years interest-only for 3.25%. That's a product I didn't even know existed. It's the upside of an interest-only loan with pretty significant long-term rate protection.
Got the same quote from Citi. 2.375% on a 10/1 ARM with $1M AUM. No closing costs. There is a possibility of dropping down to 2.25% with FICO > 780, but no promises.

The interest only option would be 2.5%. Probably worth the rate differential, IMHO. With the interest-only project, $200k of the value counted towards AUM needs to be cash rather than securities. But after closing, the $200k no longer needs to be held in cash.

Need to decide whether to lock the rate over the weekend or wait and see what happens next week. The panic doesn't seem to be over and I could definitely imagine rates falling even more.

Econberkeley
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Re: Relationship mortgage discounts for moving a million assets

Post by Econberkeley » Mon Mar 02, 2020 11:31 am

I received 2.75% 30 year refinance rate from Citi. Loan is for $500k. I need to keep $1 million with Citi until 15 days after the close date in order to get that rate. Otherwise, it is 3.25%.

modernist
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Re: Relationship mortgage discounts for moving a million assets

Post by modernist » Mon Mar 02, 2020 8:58 pm

Startled Cat wrote:
Sat Feb 29, 2020 2:47 pm
modernist wrote:
Fri Feb 28, 2020 2:13 am
I've gotten extremely aggressive pricing from Citi.

2.375% on a 10/1 with $1M in assets, no closing credits. Mortgage balance approx $1.5M.

They're also offering a 30-year fixed, where the first ten years interest-only for 3.25%. That's a product I didn't even know existed. It's the upside of an interest-only loan with pretty significant long-term rate protection.
Got the same quote from Citi. 2.375% on a 10/1 ARM with $1M AUM. No closing costs. There is a possibility of dropping down to 2.25% with FICO > 780, but no promises.

The interest only option would be 2.5%. Probably worth the rate differential, IMHO. With the interest-only project, $200k of the value counted towards AUM needs to be cash rather than securities. But after closing, the $200k no longer needs to be held in cash.

Need to decide whether to lock the rate over the weekend or wait and see what happens next week. The panic doesn't seem to be over and I could definitely imagine rates falling even more.
My Citi loan officer has been incredibly slow to send over the loan package with all discounts factored in. If you’ve found someone speedy, if you could DM me that would be great.

thrownothingaway
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Re: Relationship mortgage discounts for moving a million assets

Post by thrownothingaway » Thu Mar 05, 2020 6:41 pm

Just joined bogleheads specifically to thank everyone for the knowledge in this thread.

We just closed on a purchase loan, 30-year fixed at 2.875% with 0 points, jumbo ($2 million minus 20% down) at Bank of America in California.

Started the process about a month ago before the recent rate cut so who knows what it could be now.

First offer was 3.25% with roughly 0.4 points. I was very direct with the loan officer that this had to be very cheap money or I would move on. She knew exactly what I was looking for.

Using a competitive offer at 3.25% with no points at a local mortgage broker she was able to remove the points. Then $3 million asset move triggered the 0.375% relationship discount. At the time I looked, it seemed like only Wells Fargo had a chance of matching and no one could beat it.

Moving the assets was a complete fiasco. The ML Edge rep sent me the wrong paperwork twice and then did nothing with the third set. I ended up forcing the transfer through from the other brokerage and hoping for the best.

The one wrinkle compared to what others reported is that there was a recent policy change that the relationship assets transferred CANNOT include the down payment or any of the closing costs. We ended up needing to transfer just over $3.4 million to make it work.

Thanks again to everyone here... saved us an incredible amount of money.

nepats
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Re: Relationship mortgage discounts for moving a million assets

Post by nepats » Fri Mar 06, 2020 9:52 am

Anyone reach out for refinance quotes with the recent rate drops? Also, does WF count new money and/or existing money for relationship discount?

drekin
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Re: Relationship mortgage discounts for moving a million assets

Post by drekin » Fri Mar 06, 2020 1:51 pm

Awesome thread. I am personally seeing an increase in mortgage rates; lenders are saying its due to uptick in demand. This is reflected on the wells fargo website where the margin between purchase and refi for jumbo loans now is 0.75% https://www.wellsfargorelo.com/relo/tod ... ompany1096.

AFAIK, here are the the current relationship rules for each lender:
BoA: New money since application, $250k 0.125% reduction, $500k 0.25% reduction, $3M 0.375% reduction
Wells: Total money, $250k 0.125% reduction, $500k 0.25% reduction, $750k 0.375% reduction, $1M 0.50% reduction, $3M 0.625% reduction
Citi: Total money, has a nice link https://online.citi.com/US/JRS/portal/t ... ng_landing. $50k 0.125% reduction, $200k 0.25% reduction, $500k 0.375% reduction, $1M 0.50% reduction, $2M 0.625% reduction
US Bank: no benefit
HSBC: Total money: 250k 0.125% reduction, $500k 0.25% reduction, $1M 0.3% reduction

AFAIK, all of the above can include cash, CD, brokerage, and IRA accounts.

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softwaregeek
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Re: Relationship mortgage discounts for moving a million assets

Post by softwaregeek » Fri Mar 06, 2020 6:31 pm

I just used the Citi $2M offer to get BofA to match. And I didn't have to move the assets, since they were already at BofA Of course, I would have moved the assets to save an eighth, I just didn't want to.

gnarsed
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Re: Relationship mortgage discounts for moving a million assets

Post by gnarsed » Sat Mar 07, 2020 10:36 am

here is my current experience:

playing the citi vs bofa game. got a quote from citi, which was promptly matched by bofa (though bofa needs me to move 3MM to get to the same rate). this was back when 10yr yield was 1.4%. it is down to .7% now, but rates have not budged much. am now in limbo with a lock in bofa, but i am hesitant to proceed because i think citi will drop further.
Last edited by gnarsed on Fri May 29, 2020 12:14 am, edited 1 time in total.

grp2c
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Re: Relationship mortgage discounts for moving a million assets

Post by grp2c » Wed Mar 11, 2020 2:31 pm

glad I found this thread. locked in 2.625% with no closing costs with Citi after they price matched a local CU on a 10 yr arm with moving 500k to get relationship pricing. Probably could have got it down to 2.5% last week.

plumeria
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Re: Relationship mortgage discounts for moving a million assets

Post by plumeria » Wed Mar 11, 2020 3:56 pm

grp2c wrote:
Wed Mar 11, 2020 2:31 pm
glad I found this thread. locked in 2.625% with no closing costs with Citi after they price matched a local CU on a 10 yr arm with moving 500k to get relationship pricing. Probably could have got it down to 2.5% last week.
[ quote fixed by admin LadyGeek]

So happy I found this thread as well. Do mind sharing your contact at Citi? I can't get anyone on the phone to speak to and I don't live near a Citi to walk in. Thanks! And thank you to everyone for all their knowledge. Have learned so much

grp2c
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Re: Relationship mortgage discounts for moving a million assets

Post by grp2c » Thu Mar 12, 2020 12:40 am

plumeria wrote:
Wed Mar 11, 2020 3:56 pm
So happy I found this thread as well. Do mind sharing your contact at Citi? I can't get anyone on the phone to speak to and I don't live near a Citi to walk in. Thanks! And thank you to everyone for all their knowledge. Have learned so much
PM'd you.

KMB
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Location: Chicago-ish, IL

Re: Relationship mortgage discounts for moving a million assets

Post by KMB » Thu Mar 12, 2020 6:35 am

grp2c wrote:
Wed Mar 11, 2020 2:31 pm
glad I found this thread. locked in 2.625% with no closing costs with Citi after they price matched a local CU on a 10 yr arm with moving 500k to get relationship pricing. Probably could have got it down to 2.5% last week.
We did refi with WF fairly recently (locked rate back in 10/2019 and closed about 2 months ago. Any chance you can pass along your Citi contact to me as well? I am interested in checking out current rates and would consider asset transfer. Thanks in advance!

dellfanboy
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Re: Relationship mortgage discounts for moving a million assets

Post by dellfanboy » Thu Mar 12, 2020 7:10 am

grp2c wrote:
Thu Mar 12, 2020 12:40 am
plumeria wrote:
Wed Mar 11, 2020 3:56 pm
So happy I found this thread as well. Do mind sharing your contact at Citi? I can't get anyone on the phone to speak to and I don't live near a Citi to walk in. Thanks! And thank you to everyone for all their knowledge. Have learned so much
PM'd you.
Can you PM me as well?

chutchins
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Re: Relationship mortgage discounts for moving a million assets

Post by chutchins » Wed Mar 18, 2020 9:50 am

grp2c wrote:
Wed Mar 11, 2020 2:31 pm
glad I found this thread. locked in 2.625% with no closing costs with Citi after they price matched a local CU on a 10 yr arm with moving 500k to get relationship pricing. Probably could have got it down to 2.5% last week.
Would appreciate a PM as well, thanks!

notabene
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Re: Relationship mortgage discounts for moving a million assets

Post by notabene » Mon Mar 23, 2020 3:08 pm

Question re: the relationship mortgage.

On Citi (I'm sure WF has similar condition), there's a tiered set of $$ that allows you predefined rate discount. This amounts to depositing those $$ amount to some deposit accounts (checking, saving, trading etc). Question is, how long do you need to maintain that balance? Having $200k deposit to Citi for closing is fine, but after closing, I wonder how long you'd need to keep that money with Citi.

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softwaregeek
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Re: Relationship mortgage discounts for moving a million assets

Post by softwaregeek » Mon Mar 23, 2020 11:24 pm

notabene wrote:
Mon Mar 23, 2020 3:08 pm
Question re: the relationship mortgage.

On Citi (I'm sure WF has similar condition), there's a tiered set of $$ that allows you predefined rate discount. This amounts to depositing those $$ amount to some deposit accounts (checking, saving, trading etc). Question is, how long do you need to maintain that balance? Having $200k deposit to Citi for closing is fine, but after closing, I wonder how long you'd need to keep that money with Citi.
The longest I have seen is a month. However, BofA offered me incentives to stay 9 months. First time was 1200 for 500k.

I don’t know how they profit but they bought my business. I don’t chase this and I am not a huge lover of the the bank or Merrill Edge, As I think Schwab is better in every way, but hard to argue with cold cash.

boglewow
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Re: Relationship mortgage discounts for moving a million assets

Post by boglewow » Tue Mar 24, 2020 7:01 am

notabene wrote:
Mon Mar 23, 2020 3:08 pm
Question re: the relationship mortgage.

On Citi (I'm sure WF has similar condition), there's a tiered set of $$ that allows you predefined rate discount. This amounts to depositing those $$ amount to some deposit accounts (checking, saving, trading etc). Question is, how long do you need to maintain that balance? Having $200k deposit to Citi for closing is fine, but after closing, I wonder how long you'd need to keep that money with Citi.
My CITI REFI experience: No need to keep the moved money in for more than a few days. You can move it anytime after the loan closes. (Received .25% discount)

I would double/triple check with the loan officer though.

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softwaregeek
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Re: Relationship mortgage discounts for moving a million assets

Post by softwaregeek » Tue Mar 24, 2020 2:45 pm

And I should add, at most of these banks you can use a discount brokerage account so no need to sell or take capital gains

Econberkeley
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Re: Relationship mortgage discounts for moving a million assets

Post by Econberkeley » Mon Apr 06, 2020 3:23 pm

I need to move $1 million to citi in order get the 0.5% discount. Did any of you make a wire transfer for million or more? Are there any risks for moving such a big dollar amount? Can anything go wrong with the wire?

mervinj7
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Re: Relationship mortgage discounts for moving a million assets

Post by mervinj7 » Mon Apr 06, 2020 3:25 pm

Econberkeley wrote:
Mon Apr 06, 2020 3:23 pm
I need to move $1 million to citi in order get the 0.5% discount. Did any of you make a wire transfer for million or more? Are there any risks for moving such a big dollar amount? Can anything go wrong with the wire?
A wire transfer is for moving cash. I believe many folks are doing transfer in kind of assets. For example, a $1M of VTI.

HEDGEFUNDIE
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Re: Relationship mortgage discounts for moving a million assets

Post by HEDGEFUNDIE » Mon Apr 06, 2020 3:31 pm

mervinj7 wrote:
Mon Apr 06, 2020 3:25 pm
Econberkeley wrote:
Mon Apr 06, 2020 3:23 pm
I need to move $1 million to citi in order get the 0.5% discount. Did any of you make a wire transfer for million or more? Are there any risks for moving such a big dollar amount? Can anything go wrong with the wire?
A wire transfer is for moving cash. I believe many folks are doing transfer in kind of assets. For example, a $1M of VTI.
Maybe Econberkeley has a mil in cash :shock:

mervinj7
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Re: Relationship mortgage discounts for moving a million assets

Post by mervinj7 » Mon Apr 06, 2020 4:01 pm

HEDGEFUNDIE wrote:
Mon Apr 06, 2020 3:31 pm
mervinj7 wrote:
Mon Apr 06, 2020 3:25 pm
Econberkeley wrote:
Mon Apr 06, 2020 3:23 pm
I need to move $1 million to citi in order get the 0.5% discount. Did any of you make a wire transfer for million or more? Are there any risks for moving such a big dollar amount? Can anything go wrong with the wire?
A wire transfer is for moving cash. I believe many folks are doing transfer in kind of assets. For example, a $1M of VTI.
Maybe Econberkeley has a mil in cash :shock:
:dollar :oops:
Now, I feel dumb that I didn't even consider that.

HEDGEFUNDIE
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Re: Relationship mortgage discounts for moving a million assets

Post by HEDGEFUNDIE » Tue Apr 07, 2020 7:42 pm

Mailer from BoA outlining the terms of the relationship mortgage:

Image

Image

[Image links added by admin LadyGeek. Click on the image to view full size.]

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softwaregeek
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Re: Relationship mortgage discounts for moving a million assets

Post by softwaregeek » Wed Apr 08, 2020 1:20 am

Yup. I got that mailer from BofA. Used to be 1M got you half a percent.

Still, I closed at 2.75 today with BofA on a 30 yr fixed with a 0.5 lender credit. I can’t believe it. And 1800 in account move bonuses. If they could get service to remotely approach their competitors I would be a dedicated customer for life. partly I think it was repeat business from the same loan team I used six months ago.

Afty
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Re: Relationship mortgage discounts for moving a million assets

Post by Afty » Wed Apr 08, 2020 11:27 am

I also received that exact mailer.

I posted earlier in this thread (or maybe the refinance thread?) that Chase offered a rate reduction to 2.875% on my current 30 year FRM, compared to 2.75% for the 15 year FR refinance (2.5% with $500k asset transfer) from BofA that I currently have in process. I've been negotiating with BofA to lower their rate, but they are having trouble matching. If BofA cannot do better, I will probably cancel the refinance. I'll lose the appraisal fee if I do that.

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softwaregeek
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Re: Relationship mortgage discounts for moving a million assets

Post by softwaregeek » Wed Apr 08, 2020 7:20 pm

Chase has never been competitive for me. And Their discount brokerage sucks. But for a sub 3 rate I would take it and pay off as slow as possible.

Downtwn
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Re: Relationship mortgage discounts for moving a million assets

Post by Downtwn » Thu Apr 09, 2020 12:01 am

About to close on my refi: BofA 10/1 ARM at 2.625%, with .5% points and moving $500k to Merrill. Wish I had read this thread first since I obviously could have negotiated a better deal! Thanks for the great info.

E90Tony
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Re: Relationship mortgage discounts for moving a million assets

Post by E90Tony » Thu Apr 09, 2020 9:50 pm

softwaregeek wrote:
Wed Apr 08, 2020 1:20 am
Yup. I got that mailer from BofA. Used to be 1M got you half a percent.

Still, I closed at 2.75 today with BofA on a 30 yr fixed with a 0.5 lender credit. I can’t believe it. And 1800 in account move bonuses. If they could get service to remotely approach their competitors I would be a dedicated customer for life. partly I think it was repeat business from the same loan team I used six months ago.
Wow, great rate! Do you have a loan officer contact, and was the original rate 3.25 dropped to 2.75 with assets moved?

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softwaregeek
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Re: Relationship mortgage discounts for moving a million assets

Post by softwaregeek » Fri Apr 10, 2020 3:06 am

E90Tony wrote:
Thu Apr 09, 2020 9:50 pm
softwaregeek wrote:
Wed Apr 08, 2020 1:20 am
Yup. I got that mailer from BofA. Used to be 1M got you half a percent.

Still, I closed at 2.75 today with BofA on a 30 yr fixed with a 0.5 lender credit. I can’t believe it. And 1800 in account move bonuses. If they could get service to remotely approach their competitors I would be a dedicated customer for life. partly I think it was repeat business from the same loan team I used six months ago.
Wow, great rate! Do you have a loan officer contact, and was the original rate 3.25 dropped to 2.75 with assets moved?
BofA matched a relationship rate to Citi (with asset move) which was 3.0. Since most of my assets are currently at BofA, but well above the total, they didn’t ask for the asset move. I would have moved to citi for an eighth, I just didn’t want to. Then I got the letter posted above offering another .25 for a 500k additional move. I called and they agreed to honor that offer too.

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mrspock
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Re: Relationship mortgage discounts for moving a million assets

Post by mrspock » Fri Apr 10, 2020 11:59 pm

Negotiating my own refinance right now based on the info in this thread. Similar to others, from Citi, I got initially quoted 2.625% w/ 25% down on a Jumbo 10/1 ARM w/ 0.625 discount w/ $2M in assets transferred, closing costs were sky high at $6800. My plan of attack right now is to call BofA and see what they can do, and Schwab (Quicken loans) after that, I have all my assets with Schwab right now, so I'm hoping they can be competitive. Goal is to get the closing costs waived and the assets transferred reduced to something a bit smaller (I really like Schwab).

Pretty insane, I'll be able to reduce my monthly payment by $1k/month, and have that rate fixed for 10 years. Wow. I'm disappointed that I didn't do this a few weeks earlier when I could have got 2.375% from Schwab Quicken on a 5/1 ARM :/ . Seems the rates have spiked up a bit in the last few weeks.

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mrspock
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Re: Relationship mortgage discounts for moving a million assets

Post by mrspock » Sat Apr 11, 2020 5:50 pm

grp2c wrote:
Wed Mar 11, 2020 2:31 pm
glad I found this thread. locked in 2.625% with no closing costs with Citi after they price matched a local CU on a 10 yr arm with moving 500k to get relationship pricing. Probably could have got it down to 2.5% last week.
Was this CU in the Bay Area? If so, do you mind mentioning or PM'ing me which one? Thanks a bunch!

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Huygens
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Re: Relationship mortgage discounts for moving a million assets

Post by Huygens » Sat Apr 11, 2020 11:32 pm

I’m curious how to leverage this strategy for new home purchases. Would it make sense to get pre-approved with multiple lenders and then try negotiate after an offer is accepted? My recollection from our previous purchase is that we were in a rush to register the loan to close escrow on time. I suppose the other option is to close with one lender and then try to refinance afterwards.

HEDGEFUNDIE
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Re: Relationship mortgage discounts for moving a million assets

Post by HEDGEFUNDIE » Sun Apr 12, 2020 10:53 am

My new relationship mortgage with Bank of America was not only cost-free and at below market rates, I actually got paid $1400 to do it!

$600 Merrill Edge brokerage transfer bonus for moving $200k (x2)
$100 checking account bonus (x2)

[link formatted by admin LadyGeek]

grp2c
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Re: Relationship mortgage discounts for moving a million assets

Post by grp2c » Sun Apr 12, 2020 5:50 pm

follow up on my refi process. this turned into insanity. I currently have a 3.5% 30y fixed with 26 years remaining. I started with a credit union refi loan estimate of 3% with -.625 pts on a 980k, 10/1 arm loan (I have 20% equity). I had both citi and boa pricematch. I let them know I was pricematching with both and that I would go with the lowest rate. Citi pricematch took 7 days and came back at 2.5% and $2500 total closing cost with 500k relationship pricing. BOA pricematch took 8 days and came back that they would not accept the CU loan estimate because it was not "official" enough. Gave BOA the Citi official loan estimate and they took another 12 days and they came back with 2.25% with $4275 total closing costs with 500k relationship. I called Citi and planned to cancel. He said let him try to pricematch again, but the BOA offer was going to be hard to beat. Told him I had a BOA appraisal booked in 5 days so he had 4 days to match or I was going with BOA. Citi came back at 2.125% with $3700 total closing and 500k relationship. If citi can hold a non-prototype account for a self employed defined benefit plan, I might be able to get the rate down to 2%, $3700 total closing, and 1mil relationship. I got the citi appraisal thinking there's no way BOA can match and it would probably take too long anyway as Citi can close by 5/11/20. I emailed BOA to cancel. He's mad and wants a chance to pricematch again ...

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softwaregeek
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Re: Relationship mortgage discounts for moving a million assets

Post by softwaregeek » Sun Apr 12, 2020 6:23 pm

Damn. I thought 2.75 for a 30yr fixed with a 5k lender credit was good. But if someone offered me 2.125 I would probably take that. Inflation probably running 2% and probably going higher.

grp2c
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Re: Relationship mortgage discounts for moving a million assets

Post by grp2c » Sun Apr 12, 2020 6:57 pm

If inflation does go up significantly, you could be better off with the 30y fixed at 2.75% vs a 10/1 arm. Part of the reason I went with the 10/1 arm is that I will likely sell within 10 years

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mrspock
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Re: Relationship mortgage discounts for moving a million assets

Post by mrspock » Sun Apr 12, 2020 11:17 pm

grp2c wrote:
Sun Apr 12, 2020 5:50 pm
follow up on my refi process. this turned into insanity. I currently have a 3.5% 30y fixed with 26 years remaining. I started with a credit union refi loan estimate of 3% with -.625 pts on a 980k, 10/1 arm loan (I have 20% equity). I had both citi and boa pricematch. I let them know I was pricematching with both and that I would go with the lowest rate. Citi pricematch took 7 days and came back at 2.5% and $2500 total closing cost with 500k relationship pricing. BOA pricematch took 8 days and came back that they would not accept the CU loan estimate because it was not "official" enough. Gave BOA the Citi official loan estimate and they took another 12 days and they came back with 2.25% with $4275 total closing costs with 500k relationship. I called Citi and planned to cancel. He said let him try to pricematch again, but the BOA offer was going to be hard to beat. Told him I had a BOA appraisal booked in 5 days so he had 4 days to match or I was going with BOA. Citi came back at 2.125% with $3700 total closing and 500k relationship. If citi can hold a non-prototype account for a self employed defined benefit plan, I might be able to get the rate down to 2%, $3700 total closing, and 1mil relationship. I got the citi appraisal thinking there's no way BOA can match and it would probably take too long anyway as Citi can close by 5/11/20. I emailed BOA to cancel. He's mad and wants a chance to pricematch again ...
How recent was all this? Within the last 7 days? BofA was less than impressive out the gates (3.25 10/1), though I’m going to have them (try to) match Citi’s 2.625% 10/1 offer.

Was there somebody specific you talked to at BofA or just a standard loans officer?
Last edited by mrspock on Mon Apr 13, 2020 12:31 am, edited 1 time in total.

grp2c
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Re: Relationship mortgage discounts for moving a million assets

Post by grp2c » Mon Apr 13, 2020 12:01 am

I started this process around the beginning of march when rates had just bottomed out. At BOA just walked into my local branch and spoke to the loan officer. Price match required multiple signatures to be approved.

bleuspeed
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Re: Relationship mortgage discounts for moving a million assets

Post by bleuspeed » Thu Apr 16, 2020 10:43 pm

Huygens wrote:
Sat Apr 11, 2020 11:32 pm
I’m curious how to leverage this strategy for new home purchases. Would it make sense to get pre-approved with multiple lenders and then try negotiate after an offer is accepted? My recollection from our previous purchase is that we were in a rush to register the loan to close escrow on time. I suppose the other option is to close with one lender and then try to refinance afterwards.
Yeah you get pre-approved and also submit all documents for underwriting which results in you having a conditional approval / loan commitment. The letter you have from the bank with the conditional approval shows you as a more serious and more financially secure buyer than just the initial pre approval letter. At this point the banks can also offer a shorter closing timeline. You can then shop around for the best rate after your offer is accepted.

You can have multiple banks do this for you. All of them will run your credit for this and if all of the credit pulls happen within two weeks I believe the credit bureaus will not ding you for multiple credit pulls.

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Huygens
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Re: Relationship mortgage discounts for moving a million assets

Post by Huygens » Thu Apr 16, 2020 11:48 pm

bleuspeed wrote:
Thu Apr 16, 2020 10:43 pm
Huygens wrote:
Sat Apr 11, 2020 11:32 pm
I’m curious how to leverage this strategy for new home purchases. Would it make sense to get pre-approved with multiple lenders and then try negotiate after an offer is accepted? My recollection from our previous purchase is that we were in a rush to register the loan to close escrow on time. I suppose the other option is to close with one lender and then try to refinance afterwards.
Yeah you get pre-approved and also submit all documents for underwriting which results in you having a conditional approval / loan commitment. The letter you have from the bank with the conditional approval shows you as a more serious and more financially secure buyer than just the initial pre approval letter. At this point the banks can also offer a shorter closing timeline. You can then shop around for the best rate after your offer is accepted.

You can have multiple banks do this for you. All of them will run your credit for this and if all of the credit pulls happen within two weeks I believe the credit bureaus will not ding you for multiple credit pulls.
Thanks. This is helpful.

hooverhome
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Re: Relationship mortgage discounts for moving a million assets

Post by hooverhome » Fri Apr 17, 2020 11:05 am

grp2c wrote:
Sun Apr 12, 2020 5:50 pm
follow up on my refi process. this turned into insanity. I currently have a 3.5% 30y fixed with 26 years remaining. I started with a credit union refi loan estimate of 3% with -.625 pts on a 980k, 10/1 arm loan (I have 20% equity). I had both citi and boa pricematch. I let them know I was pricematching with both and that I would go with the lowest rate. Citi pricematch took 7 days and came back at 2.5% and $2500 total closing cost with 500k relationship pricing. BOA pricematch took 8 days and came back that they would not accept the CU loan estimate because it was not "official" enough. Gave BOA the Citi official loan estimate and they took another 12 days and they came back with 2.25% with $4275 total closing costs with 500k relationship. I called Citi and planned to cancel. He said let him try to pricematch again, but the BOA offer was going to be hard to beat. Told him I had a BOA appraisal booked in 5 days so he had 4 days to match or I was going with BOA. Citi came back at 2.125% with $3700 total closing and 500k relationship. If citi can hold a non-prototype account for a self employed defined benefit plan, I might be able to get the rate down to 2%, $3700 total closing, and 1mil relationship. I got the citi appraisal thinking there's no way BOA can match and it would probably take too long anyway as Citi can close by 5/11/20. I emailed BOA to cancel. He's mad and wants a chance to pricematch again ...
could you please PM me the citi contact and also know what CU you are talking about? Thank you

modernist
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Re: Relationship mortgage discounts for moving a million assets

Post by modernist » Mon Apr 20, 2020 12:53 pm

For a datapoint, I closed last week on a 10/1 ARM at 2.25% with BofA.

Loan ~ $1.6M
Property ~ $2.3M

Originally, Citi offered me 2.375% for moving $1M in assets. BofA offered to match without moving new assets (I had roughly $650K with them). BofA then sent a mailer offering .125% for moving 250K (the same letter shown earlier in this thread).

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Re: Relationship mortgage discounts for moving a million assets

Post by oldcomputerguy » Tue Apr 21, 2020 6:21 am

New member howardde has a question regarding paying points at refi to lower his interest rate, his question has been split off to separate topic [Pay points for lower interest rate?].
"I’ve come around to this: If you’re dumb, surround yourself with smart people; and if you’re smart, surround yourself with smart people who disagree with you." (Aaron Sorkin)

Afty
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Re: Relationship mortgage discounts for moving a million assets

Post by Afty » Mon Apr 27, 2020 12:53 pm

Afty wrote:
Wed Apr 08, 2020 11:27 am
I posted earlier in this thread (or maybe the refinance thread?) that Chase offered a rate reduction to 2.875% on my current 30 year FRM, compared to 2.75% for the 15 year FR refinance (2.5% with $500k asset transfer) from BofA that I currently have in process. I've been negotiating with BofA to lower their rate, but they are having trouble matching. If BofA cannot do better, I will probably cancel the refinance. I'll lose the appraisal fee if I do that.
After several weeks' delay and very poor communication, Bank of America was able to match the Chase offer. With the relationship discount, I'll be at 2.625% for a 30-year refinance with no closing costs!

iridum
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Re: Relationship mortgage discounts for moving a million assets

Post by iridum » Mon Apr 27, 2020 10:16 pm

Afty wrote:
Mon Apr 27, 2020 12:53 pm
Afty wrote:
Wed Apr 08, 2020 11:27 am
I posted earlier in this thread (or maybe the refinance thread?) that Chase offered a rate reduction to 2.875% on my current 30 year FRM, compared to 2.75% for the 15 year FR refinance (2.5% with $500k asset transfer) from BofA that I currently have in process. I've been negotiating with BofA to lower their rate, but they are having trouble matching. If BofA cannot do better, I will probably cancel the refinance. I'll lose the appraisal fee if I do that.
After several weeks' delay and very poor communication, Bank of America was able to match the Chase offer. With the relationship discount, I'll be at 2.625% for a 30-year refinance with no closing costs!
that is an awesome rate for 30 fixed. I am working with boa as well and getting to 2.875 for 30 fixed after .25% relationship discount. Chase could not match and Wells Fargo told me they are not doing Jumbo right now. Anyone have a contact at Citi I can reach out to so that I can get their rates and hopefully get a better rate? I’d appreciate. Thanks.

Almond
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Re: Relationship mortgage discounts for moving a million assets

Post by Almond » Tue Apr 28, 2020 12:21 pm

modernist wrote:
Mon Apr 20, 2020 12:53 pm
For a datapoint, I closed last week on a 10/1 ARM at 2.25% with BofA.

Loan ~ $1.6M
Property ~ $2.3M

Originally, Citi offered me 2.375% for moving $1M in assets. BofA offered to match without moving new assets (I had roughly $650K with them). BofA then sent a mailer offering .125% for moving 250K (the same letter shown earlier in this thread).

Wow when did you lock in. BOA today offered 3.65 on a 10 interest only jumbo with 8k in closing cost. discount for moving money. Looks like rates have shot up quite a bit

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Re: Relationship mortgage discounts for moving a million assets

Post by mrspock » Tue Apr 28, 2020 4:13 pm

Another data point: B of A countered Citi's 2.625% Jumbo 10/1 ARM offer @ 2.5% Jumbo 10/1 ARM, $800k-1M loan w/ $3.5k closing costs, this was last week. Citi and Quicken (Schwab "VIP" services) are seeing if they can match or beat, curious what they come back with.

So far B of A is the winner, though I'm not a huge fan of the closing costs, but do like the lower amount of assets I have to transfer (500k-1M), so hoping this final round of matching gets that wiped away to $0.

Curious how folks were able to wheel and deal it down to 2.25%! That's impressive.

iridum
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Re: Relationship mortgage discounts for moving a million assets

Post by iridum » Tue Apr 28, 2020 4:50 pm

grp2c wrote:
Wed Mar 11, 2020 2:31 pm
glad I found this thread. locked in 2.625% with no closing costs with Citi after they price matched a local CU on a 10 yr arm with moving 500k to get relationship pricing. Probably could have got it down to 2.5% last week.
Can I get the citi contact you have? Thanks.

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Re: Relationship mortgage discounts for moving a million assets

Post by HEDGEFUNDIE » Tue Apr 28, 2020 5:06 pm

mrspock wrote:
Tue Apr 28, 2020 4:13 pm
Another data point: B of A countered Citi's 2.625% Jumbo 10/1 ARM offer @ 2.5% Jumbo 10/1 ARM, $800k-1M loan w/ $3.5k closing costs, this was last week. Citi and Quicken (Schwab "VIP" services) are seeing if they can match or beat, curious what they come back with.

So far B of A is the winner, though I'm not a huge fan of the closing costs, but do like the lower amount of assets I have to transfer (500k-1M), so hoping this final round of matching gets that wiped away to $0.

Curious how folks were able to wheel and deal it down to 2.25%! That's impressive.
For this kind of thing BoA should be able to offer a large lender credit. My closing costs were only around $900.

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mrspock
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Re: Relationship mortgage discounts for moving a million assets

Post by mrspock » Tue Apr 28, 2020 7:53 pm

HEDGEFUNDIE wrote:
Tue Apr 28, 2020 5:06 pm
mrspock wrote:
Tue Apr 28, 2020 4:13 pm
Another data point: B of A countered Citi's 2.625% Jumbo 10/1 ARM offer @ 2.5% Jumbo 10/1 ARM, $800k-1M loan w/ $3.5k closing costs, this was last week. Citi and Quicken (Schwab "VIP" services) are seeing if they can match or beat, curious what they come back with.

So far B of A is the winner, though I'm not a huge fan of the closing costs, but do like the lower amount of assets I have to transfer (500k-1M), so hoping this final round of matching gets that wiped away to $0.

Curious how folks were able to wheel and deal it down to 2.25%! That's impressive.
For this kind of thing BoA should be able to offer a large lender credit. My closing costs were only around $900.
Did you just come out and ask if they could do better on the closing costs? Or did a counter offer have this from the start? I don’t have much leverage here, though I suppose asking is free.

My only play here is “commitment”, I could basically say if they drop the closing costs I’ll commit to their offer right there and then — giving them my word. Otherwise they risk losing the deal to another bank if somebody else swoops in with a better offer.

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