Relationship mortgage discounts for moving a million assets

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anilj
Posts: 12
Joined: Mon Oct 14, 2019 1:24 pm

Re: Relationship mortgage discounts for moving a million assets

Post by anilj »

I had >1M in assets ready to be used to get these discounts but it didn't workout in the end. I am so upset. I was working with WFC, PNC, and BofA (but never pursued BofA offering and never pulled my score).

TLDR; Lesson of this story is stay away from WFC if you have some "nuance" situations. Sorry have to rant a little because I am not happy with how this turned out. Here's the story:

My credit score is around 781-785.
I had a rental I bought in 2020. Not all banks accept this rentals < 2 years.

Feb 2021: Tried to get an approval letter from WFC, a top broker in the Bay Area. They straight out rejected my request for a loan with 80% LTV. They didn't offer anything else either. Didn't ask me. Dinged my credit score for a wasted check.
Meanwhile, PNC at the same time offered 70% LTV or 80% (if I rent my departure home)

April 2021: I run across another WFC loan officer. He boasts how great he is (with his upper management connections at WFC) and he assures me that I can get a loan I want. He convinced me to do another credit check. He throws an initial letter at 60% LTV (huge 40% down payment). To know for sure and to see if they can count more of my income/assets, he suggests I do an underwriter review. 2 weeks go by, no update.

May 2021: We suddenly get into a contract on an offer for a 2.45M home in Bay Area. I go back to WFC and see where we stand. No update. Loan officer becomes unresponsive, says they are having a "baby"; I ask if there is anyone else I can work with. He says no. I specifically told him that I am only going to go with WFC if they can give me at minimum a 70% LTV (a 30% down maximum or less). He takes another 24 hours and wastes my time, citing reasons like "WFC recently started accepting rental incomes, for people with large assets" etc. Makes up stupid reasons to drag this along.

In the end he comes back with and says, the best they can do is 50% LTV! (50% down payment).

Meanwhile, my score is right around the 780 market (because of multiple credit checks the past few months), where a lot of banks have a threshold for good rates. BofA verbally offered a 2.5% for 70% LTV and 500K in assets moved to them (more if I had previous account with them). Because my score was at a the cut off, I didn't really push for BofA so late in the game.

I ended up having to go with PNC at 30Y 2.75%. Because of the "stress" and [expletive removed by admin LadyGeek] from WFC, I wasn't able to shop around for rates. Too late to go with BofA.

2.75% is still good but I missed out getting an even better rate.

Moral of the story: Get an underwriter review from 2+ banks early in the game! Don't go with WFC if you have any nuances in your financing requests. Since Feb the home prices have shot up so I did have to increase my loan size ... I was looking at 1.9M purchase but ended up with 2.45M purchase. But still, WFC is stupid for wasting my time.
CAorTX
Posts: 9
Joined: Thu Aug 06, 2020 3:38 pm

Re: Relationship mortgage discounts for moving a million assets

Post by CAorTX »

A few data points for those following this thread. I'm now rate lock for my 3rd refi in 3 years... 2.375% on a 30yr fixed 70LTV jumbo (1.9M loan balance) in the bay area, 0 points ~5k in closing costs. I seem to have hit a sweet spot with BOA had $1M+ with them already and can transfer over 500k resulting in the rate, a previous post outlined the discounts. Citibank was 3% after new money in bonuses... chase was 2.75% after moving 2.4M in to them, my wells contact just didn't respond after I told him the chase rate. Surprised how much better BoA was compared to everyone else. In 3 yrs I went from 3.5% with wells - 3.375% BoA - 3% better.com - 2.375% with boa
Galun
Posts: 17
Joined: Thu Jul 28, 2016 12:01 am

Re: Relationship mortgage discounts for moving a million assets

Post by Galun »

CAorTX wrote: Thu Jun 10, 2021 10:30 pm A few data points for those following this thread. I'm now rate lock for my 3rd refi in 3 years... 2.375% on a 30yr fixed 70LTV jumbo (1.9M loan balance) in the bay area, 0 points ~5k in closing costs. I seem to have hit a sweet spot with BOA had $1M+ with them already and can transfer over 500k resulting in the rate, a previous post outlined the discounts. Citibank was 3% after new money in bonuses... chase was 2.75% after moving 2.4M in to them, my wells contact just didn't respond after I told him the chase rate. Surprised how much better BoA was compared to everyone else. In 3 yrs I went from 3.5% with wells - 3.375% BoA - 3% better.com - 2.375% with boa
I spoke with bofa today and the best they can do is 2.5% -0.5 points. I have some money at baml, not $1mm, and all they offered was 25bps discount with $500k new money. I offered to move enough new money over to have $1.5mm but can’t seem to get that final 0.125% with 1mm existing. I guess I don’t have $1mm existing now but that can be fixed quickly with a transfer. However the loan officer haven’t heard of this program. It would be a refi of $1.6mm loan amount at 45% ltv also in Bay Area. Would you mind sharing the contact of your loan officer (if that’s allowed here)?

EDIT - on a closer read of your post, are you at 0 points and have to pay $5k in closing cost? I would get 0.5 points in rebate which would be $6400 ish. So it’s an $11.5k swing if I read it correctly, which might be enough to buy down 0.125%
investor231i
Posts: 107
Joined: Mon Dec 30, 2019 7:56 pm

Re: Relationship mortgage discounts for moving a million assets

Post by investor231i »

Galun wrote: Thu Jun 10, 2021 10:39 pm
CAorTX wrote: Thu Jun 10, 2021 10:30 pm A few data points for those following this thread. I'm now rate lock for my 3rd refi in 3 years... 2.375% on a 30yr fixed 70LTV jumbo (1.9M loan balance) in the bay area, 0 points ~5k in closing costs. I seem to have hit a sweet spot with BOA had $1M+ with them already and can transfer over 500k resulting in the rate, a previous post outlined the discounts. Citibank was 3% after new money in bonuses... chase was 2.75% after moving 2.4M in to them, my wells contact just didn't respond after I told him the chase rate. Surprised how much better BoA was compared to everyone else. In 3 yrs I went from 3.5% with wells - 3.375% BoA - 3% better.com - 2.375% with boa
I spoke with bofa today and the best they can do is 2.5% -0.5 points. I have some money at baml, not $1mm, and all they offered was 25bps discount with $500k new money. I offered to move enough new money over to have $1.5mm but can’t seem to get that final 0.125% with 1mm existing. I guess I don’t have $1mm existing now but that can be fixed quickly with a transfer. However the loan officer haven’t heard of this program. It would be a refi of $1.6mm loan amount at 45% ltv also in Bay Area. Would you mind sharing the contact of your loan officer (if that’s allowed here)?

EDIT - on a closer read of your post, are you at 0 points and have to pay $5k in closing cost? I would get 0.5 points in rebate which would be $6400 ish. So it’s an $11.5k swing if I read it correctly, which might be enough to buy down 0.125%
Did you check other places like Quicken etc. Seems they are giving good rates if you have relationship with Schwab etc.
Galun
Posts: 17
Joined: Thu Jul 28, 2016 12:01 am

Re: Relationship mortgage discounts for moving a million assets

Post by Galun »

investor231i wrote: Fri Jun 11, 2021 1:01 am
Galun wrote: Thu Jun 10, 2021 10:39 pm
CAorTX wrote: Thu Jun 10, 2021 10:30 pm A few data points for those following this thread. I'm now rate lock for my 3rd refi in 3 years... 2.375% on a 30yr fixed 70LTV jumbo (1.9M loan balance) in the bay area, 0 points ~5k in closing costs. I seem to have hit a sweet spot with BOA had $1M+ with them already and can transfer over 500k resulting in the rate, a previous post outlined the discounts. Citibank was 3% after new money in bonuses... chase was 2.75% after moving 2.4M in to them, my wells contact just didn't respond after I told him the chase rate. Surprised how much better BoA was compared to everyone else. In 3 yrs I went from 3.5% with wells - 3.375% BoA - 3% better.com - 2.375% with boa
I spoke with bofa today and the best they can do is 2.5% -0.5 points. I have some money at baml, not $1mm, and all they offered was 25bps discount with $500k new money. I offered to move enough new money over to have $1.5mm but can’t seem to get that final 0.125% with 1mm existing. I guess I don’t have $1mm existing now but that can be fixed quickly with a transfer. However the loan officer haven’t heard of this program. It would be a refi of $1.6mm loan amount at 45% ltv also in Bay Area. Would you mind sharing the contact of your loan officer (if that’s allowed here)?

EDIT - on a closer read of your post, are you at 0 points and have to pay $5k in closing cost? I would get 0.5 points in rebate which would be $6400 ish. So it’s an $11.5k swing if I read it correctly, which might be enough to buy down 0.125%
Did you check other places like Quicken etc. Seems they are giving good rates if you have relationship with Schwab etc.
I did. Their 7/6 arm is indeed the best deal around, but I decided to go with 30 fixed.
presto987
Posts: 487
Joined: Sun Aug 30, 2020 10:58 pm

Re: Relationship mortgage discounts for moving a million assets

Post by presto987 »

BofA might even be better than Schwab on the 7y ARM. BofA also has a 10y ARM that is worth considering unless you're confident that you're really going to keep the house for longer than a decade.

YMMV, but I got a jumbo purchase quote from BofA a few weeks ago which was 2.625% for 30y fixed, 2.25% for 10y ARM, 2% for 7y ARM, and 1.875% for 5y ARM. All of these included a lender credit of -0.25% to -0.4%, and these rates are before any relationship discounts.

With the 0.25% rate discount for bringing in $500m of new assets, these rates would drop to 2.375% for 30y fixed, 2% for 10y ARM, 1.75% for 7y ARM, and 1.625% for 5y ARM. Again, with negative points.
smby
Posts: 88
Joined: Wed May 30, 2018 12:14 pm

Re: Relationship mortgage discounts for moving a million assets

Post by smby »

Wow...can't believe Bofa is better than Schwab for 5 year ARM. Can u please DM me your contact at Bofa who is offering this rate. Thanks
jimjam600
Posts: 20
Joined: Thu Mar 25, 2021 2:25 pm

Re: Relationship mortgage discounts for moving a million assets

Post by jimjam600 »

Does anyone have a good loan officer at Bank of America and/or Wells Fargo in the Bay Area (East Bay-ideally, but doesn't matter) that they'd be willing to share? And who could work fast?

Thank you very much.
CAorTX
Posts: 9
Joined: Thu Aug 06, 2020 3:38 pm

Re: Relationship mortgage discounts for moving a million assets

Post by CAorTX »

Galun wrote: Thu Jun 10, 2021 10:39 pm
CAorTX wrote: Thu Jun 10, 2021 10:30 pm A few data points for those following this thread. I'm now rate lock for my 3rd refi in 3 years... 2.375% on a 30yr fixed 70LTV jumbo (1.9M loan balance) in the bay area, 0 points ~5k in closing costs. I seem to have hit a sweet spot with BOA had $1M+ with them already and can transfer over 500k resulting in the rate, a previous post outlined the discounts. Citibank was 3% after new money in bonuses... chase was 2.75% after moving 2.4M in to them, my wells contact just didn't respond after I told him the chase rate. Surprised how much better BoA was compared to everyone else. In 3 yrs I went from 3.5% with wells - 3.375% BoA - 3% better.com - 2.375% with boa
I spoke with bofa today and the best they can do is 2.5% -0.5 points. I have some money at baml, not $1mm, and all they offered was 25bps discount with $500k new money. I offered to move enough new money over to have $1.5mm but can’t seem to get that final 0.125% with 1mm existing. I guess I don’t have $1mm existing now but that can be fixed quickly with a transfer. However the loan officer haven’t heard of this program. It would be a refi of $1.6mm loan amount at 45% ltv also in Bay Area. Would you mind sharing the contact of your loan officer (if that’s allowed here)?

EDIT - on a closer read of your post, are you at 0 points and have to pay $5k in closing cost? I would get 0.5 points in rebate which would be $6400 ish. So it’s an $11.5k swing if I read it correctly, which might be enough to buy down 0.125%
Yes I'm paying $5k in closing if I went with 2.5% it would have been a credit back of ~$2k.

The 7/1 would have been 1.875 with ~$2k in closing costs after the discounts.
CAorTX
Posts: 9
Joined: Thu Aug 06, 2020 3:38 pm

Re: Relationship mortgage discounts for moving a million assets

Post by CAorTX »

jimjam600 wrote: Fri Jun 11, 2021 6:21 pm Does anyone have a good loan officer at Bank of America and/or Wells Fargo in the Bay Area (East Bay-ideally, but doesn't matter) that they'd be willing to share? And who could work fast?

Thank you very much.
I have been happy with both my Wells Fargo (used for original purchase) and my BoA contacts (now using for the 2nd) time... both bay area (Santa Clara/Fremont) happy to provide if you still need contacts, DM me if so.
wildcat123
Posts: 25
Joined: Thu Oct 31, 2019 5:29 pm

Re: Relationship mortgage discounts for moving a million assets

Post by wildcat123 »

I recently closed with Wells Fargo on a purchase, 1.96M loan, 80% LTV, with a relationship discount of 0.5%, I got 2.5% @ 30years fixed.

Has anyone refinanced recently to get a better rate than that? Some of you have mentioned 2.375 with BofA, do you know if that would be available for a refinance?
I can share my wells fargo contact if anyone needs it.
CAorTX
Posts: 9
Joined: Thu Aug 06, 2020 3:38 pm

Re: Relationship mortgage discounts for moving a million assets

Post by CAorTX »

wildcat123 wrote: Sat Jun 12, 2021 12:01 am I recently closed with Wells Fargo on a purchase, 1.96M loan, 80% LTV, with a relationship discount of 0.5%, I got 2.5% @ 30years fixed.

Has anyone refinanced recently to get a better rate than that? Some of you have mentioned 2.375 with BofA, do you know if that would be available for a refinance?
I can share my wells fargo contact if anyone needs it.
my BOA 2.375 was a refi but 70LTV and had 5k CC. From what I've seen you are not going to beat a Wells Fargo new purchase 30yr jumbo rates (assuming you get the 0.5% off) unless you knock down the LTV to 70% and then get lucky. 30yr Jumbo's are still higher at most of the big banks that do relationship pricing (commentary subject to change as interest rate change). 2.5 is a solid rate... covid really flipped the jumbo rates I couldnt get lower than 3% 9 months ago on a 30yr
xerxes101
Posts: 534
Joined: Sat Oct 14, 2017 11:25 am

Re: Relationship mortgage discounts for moving a million assets

Post by xerxes101 »

Who are the main contenders in this space,
so far I have:

B of A
Wells Fargo
Citi
Chase
Quicken / Charles Schwab

In my experience B of A has been very competitive, but I was wondering if there are any other honorable mentions.
I seem to recall there was another player which was in the Bay Area only (Fremont Bank maybe?)
user59
Posts: 2
Joined: Sat Dec 26, 2020 7:07 pm

Re: Relationship mortgage discounts for moving a million assets

Post by user59 »

CAorTX wrote: Fri Jun 11, 2021 10:19 pm I have been happy with both my Wells Fargo (used for original purchase) and my BoA contacts (now using for the 2nd) time... both bay area (Santa Clara/Fremont) happy to provide if you still need contacts, DM me if so.
I am interested in refinancing a jumbo mortgage. Could you please DM me your contacts? Thank you.
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 »

xerxes101 wrote: Sun Jun 13, 2021 9:56 am
I seem to recall there was another player which was in the Bay Area only (Fremont Bank maybe?)
first republic
wildcat123
Posts: 25
Joined: Thu Oct 31, 2019 5:29 pm

Re: Relationship mortgage discounts for moving a million assets

Post by wildcat123 »

CAorTX wrote: Sun Jun 13, 2021 8:08 am
wildcat123 wrote: Sat Jun 12, 2021 12:01 am I recently closed with Wells Fargo on a purchase, 1.96M loan, 80% LTV, with a relationship discount of 0.5%, I got 2.5% @ 30years fixed.

Has anyone refinanced recently to get a better rate than that? Some of you have mentioned 2.375 with BofA, do you know if that would be available for a refinance?
I can share my wells fargo contact if anyone needs it.
my BOA 2.375 was a refi but 70LTV and had 5k CC. From what I've seen you are not going to beat a Wells Fargo new purchase 30yr jumbo rates (assuming you get the 0.5% off) unless you knock down the LTV to 70% and then get lucky. 30yr Jumbo's are still higher at most of the big banks that do relationship pricing (commentary subject to change as interest rate change). 2.5 is a solid rate... covid really flipped the jumbo rates I couldnt get lower than 3% 9 months ago on a 30yr
Thanks for the information. With $5k CC, it will be 3+ years for the payoff if my rate reduces to 2.375. I will reach out and see what's available right now.
Lucky2Invest
Posts: 125
Joined: Wed Mar 23, 2016 6:07 pm

Re: Relationship mortgage discounts for moving a million assets

Post by Lucky2Invest »

I noticed rates have dropped again and I want to lock in. Trying to decide between 10yr and 7yr Interest Only. Schwab/Quicken has 10yr Interest Only at 2.5% vs 7Yr at 2.125% with $1M in assets. Looking at a mortgage around $1M.

I think I will be in this home for 5-10 years. Is it worth paying an extra ~$3K a year to get the 10yr vs the 7yr?
sc9182
Posts: 2165
Joined: Wed Aug 17, 2016 7:43 pm

Re: Relationship mortgage discounts for moving a million assets

Post by sc9182 »

Lucky2Invest wrote: Tue Jun 15, 2021 1:03 pm I noticed rates have dropped again and I want to lock in. Trying to decide between 10yr and 7yr Interest Only. Schwab/Quicken has 10yr Interest Only at 2.5% vs 7Yr at 2.125% with $1M in assets. Looking at a mortgage around $1M.

I think I will be in this home for 5-10 years. Is it worth paying an extra ~$3K a year to get the 10yr vs the 7yr?
Better approach would be to see if some other lenders out there willing to beat Schwab's rates, and get a quote -- give it to Schwab in-turn, and have them match that competitor's rate -- then layer Relationship discount(s) on top ..

I/O mortgage-loan is good - if you already have solid footing/savings, and solid job with potential additional income growth .. if you checked all those -- I/O payment is likely to be cheaper than paying for Rent in surrounding area(s).
amrp
Posts: 14
Joined: Tue Mar 26, 2019 10:39 am

Re: Relationship mortgage discounts for moving a million assets

Post by amrp »

Can anyone DM me contact I for for a BofA loan officer that they have had a good experience with? Probably going to do the 7 year Jumbo ARM. I’m in Florida if that makes a difference.
jimjam600
Posts: 20
Joined: Thu Mar 25, 2021 2:25 pm

Re: Relationship mortgage discounts for moving a million assets

Post by jimjam600 »

sc9182 wrote: Tue Jun 15, 2021 1:10 pm
Lucky2Invest wrote: Tue Jun 15, 2021 1:03 pm I noticed rates have dropped again and I want to lock in. Trying to decide between 10yr and 7yr Interest Only. Schwab/Quicken has 10yr Interest Only at 2.5% vs 7Yr at 2.125% with $1M in assets. Looking at a mortgage around $1M.

I think I will be in this home for 5-10 years. Is it worth paying an extra ~$3K a year to get the 10yr vs the 7yr?
Better approach would be to see if some other lenders out there willing to beat Schwab's rates, and get a quote -- give it to Schwab in-turn, and have them match that competitor's rate -- then layer Relationship discount(s) on top ..

I/O mortgage-loan is good - if you already have solid footing/savings, and solid job with potential additional income growth .. if you checked all those -- I/O payment is likely to be cheaper than paying for Rent in surrounding area(s).
I'm trying to get Wells to match BofA's rate (2.75 with 25% down on a 30-year fixed in the Bay Area) and then layer Well's superior relationship discount on top of it to get all the way down to 2.25%. My guy at Wells Fargo says he thinks it should be possible, but anyone here have recent experience doing so?

Thank you!
presto987
Posts: 487
Joined: Sun Aug 30, 2020 10:58 pm

Re: Relationship mortgage discounts for moving a million assets

Post by presto987 »

^ Great idea.

It would be helpful to have all the relationship discounts in one place. Not sure if that exists. Below is my attempt; please correct me if this is wrong.

Schwab:
0.25% for $250,000
0.5% for $1M
0.75% for $5M

Wells Fargo / Chase / Citi:
0.125% for $250,000
0.25% for $500,000
0.375% for $750,000
0.5% for $1M

BofA:
0.125% for $250,000
0.25% for $500,000

It would also be good to know the following:

1. Which of these banks are willing to stack the relationship discount after they price match another lender?

2. Which of these lenders include the relationship discount in their Loan Estimate? I read in this thread that Citi does it. Which I believe means that you can tell Citi you're moving in $1M, get an LE that reflects the reduced rate, and then go try to get another lender to match it. If the second lender matches it with no strings attached, then you can essentially get relationship pricing without moving any assets. Or if you're very fortunate, maybe they will stack their relationship discount on top of the matched pricing (per #1 above).
Galun
Posts: 17
Joined: Thu Jul 28, 2016 12:01 am

Re: Relationship mortgage discounts for moving a million assets

Post by Galun »

You can stack relationship discounts. They all work with a base rate / points in the loan estimate, and then later on they apply the relationship discount on whatever was quoted on the loan estimate. The key is to find someone who will give you a loan estimate with that lower base rate with the relationship discount already applied. Most loan officers quote the normal base rate in the loan estimate and then in a follow up email they will say how much discount if you bring this much over. That won’t work, the competing bank will match the normal base rate and apply their own relationship discount.

I did not know this was possible but I stumbled upon it. I had a bank that matched a competitor to prevent me from refi-ing away from them and taking my assets along with it. They provided that loan estimate with that lower rate since I was not moving anything, their loan estimate was matching a competitor to prevent me from leaving. I went in really just looking to go with my existing bank if they can match as I hate moving stuff if I don’t have to. But as I was rate shopping a competing loan officer learned about this loan estimate with low base rate and suggested this method. It looks like it should work as the competing bank already matched the new lower base rate before the relationship discount.
CaptainCrunch
Posts: 4
Joined: Sun Mar 07, 2021 10:38 pm

Re: Relationship mortgage discounts for moving a million assets

Post by CaptainCrunch »

I just closed on a purchase in California: 2.75% - 30y fixed - 0pts with PNC on a $2m purchase (80% LTV).

They offered relationship discounts (0.25% $500k , 0.375% $1m, ...). I almost took it, but for external reasons could do do it in time for close.

If anyone needs a contact, DM me. My guy was fantastic.25 days close.
grp2c
Posts: 149
Joined: Sat Mar 08, 2014 4:51 pm

Re: Relationship mortgage discounts for moving a million assets

Post by grp2c »

FYI Chase has revised their relationship discounts:

Existing assets:
$150k = $500 fee waiver
$500k = 0.125% discount, full fee waiver up to $1150
$1M = 0.25% discount, full fee waiver up to $1150

New money as a % of loan amount:
37.5% = 0.125% discount
75% = 0.25% discount
112.5% = 0.375% discount
150% = 0.5% discount

Discounts above are stackable up to a max 0.5% discount + full fee waiver up to $1150
jarjarM
Posts: 2502
Joined: Mon Jul 16, 2018 1:21 pm

Re: Relationship mortgage discounts for moving a million assets

Post by jarjarM »

grp2c wrote: Tue Jun 22, 2021 10:46 am FYI Chase has revised their relationship discounts:

Existing assets:
$150k = $500 fee waiver
$500k = 0.125% discount, full fee waiver up to $1150
$1M = 0.25% discount, full fee waiver up to $1150

New money as a % of loan amount:
37.5% = 0.125% discount
75% = 0.25% discount
112.5% = 0.375% discount
150% = 0.5% discount

Discounts above are stackable up to a max 0.5% discount + full fee waiver up to $1150
Thanks for the info, chase is not too competitive for those with large loan.
grp2c
Posts: 149
Joined: Sat Mar 08, 2014 4:51 pm

Re: Relationship mortgage discounts for moving a million assets

Post by grp2c »

Chase was to able beat Schwab for me on a 900k loan. Chase only needs 80% LTV for best rates whereas I think Schwab needed 65%. This helpful if your appraisal comes back lower than expected.
gmang
Posts: 8
Joined: Mon May 10, 2021 5:08 pm

Re: Relationship mortgage discounts for moving a million assets

Post by gmang »

Does anyone know if the $6k statement credit on Amex Cards for new Jumbo mortgages at Rocket Mortgage also works with Schwab's relationship discounts? (https://www.americanexpress.com/en-us/l ... -mortgage/). When I try to apply it to my account, the website will not let me, but if these could be combined the offer would be next level!
gmang
Posts: 8
Joined: Mon May 10, 2021 5:08 pm

Re: Relationship mortgage discounts for moving a million assets

Post by gmang »

gmang wrote: Thu Jul 01, 2021 2:20 pm Does anyone know if the $6k statement credit on Amex Cards for new Jumbo mortgages at Rocket Mortgage also works with Schwab's relationship discounts? (https://www.americanexpress.com/en-us/l ... -mortgage/). When I try to apply it to my account, the website will not let me, but if these could be combined the offer would be next level!
Too bad. My agent tells me Schwab and AMEX discounts do not mix.
grp2c
Posts: 149
Joined: Sat Mar 08, 2014 4:51 pm

Re: Relationship mortgage discounts for moving a million assets

Post by grp2c »

gmang wrote: Thu Jul 01, 2021 2:20 pm Does anyone know if the $6k statement credit on Amex Cards for new Jumbo mortgages at Rocket Mortgage also works with Schwab's relationship discounts? (https://www.americanexpress.com/en-us/l ... -mortgage/). When I try to apply it to my account, the website will not let me, but if these could be combined the offer would be next level!
unlikely ... schwab was unable to give me this 10% down jumbo product below that quicken/rocket mortgage has. And because I was a schwab customer, I was unable to get it from quicken/rocket ... dumb.

https://www.quickenloans.com/home-loans/jumbo-mortgage
drekin
Posts: 18
Joined: Sun Apr 01, 2018 1:51 pm

Re: Relationship mortgage discounts for moving a million assets

Post by drekin »

I’ve been getting denied refinance from BoA and Schwab the same house I purchased 2.5 years ago because I switched jobs and my RSU income (I work in tech) does not count yet (there are 2 year restrictions from a lot of lenders). This is despite having a substantially better financial state (I do have $1M to move around now) and more than twice the real income, but banks don’t want to touch me yet. Very frustrating.

Anyone know how underwriting works at each bank. Here are my data points:

Schwab counts salary, bonuses only if there is a 2 year history, and never counts RSUs. Very conservative on DTI. Wasn't even close.

BoA counts salary, bonuses (but for me they took bonuses granted only by new employer and divided by my tenure), and RSUs after 2 years, taking a minimum of last 2 years or W2 RSU numbers or future vesting numbers, all reduced by about 30% due to market fluctuations.

I refinanced with a local credit union after I first vested some stock with new employer. They had no issue counting RSUs across 2 employers.

I refinanced with Citi in 2020, they counted RSUs and bonuses with 2 year history. This was prior to employer change.

I refinanced with HSBC prior to employer change, they only counted salary and bonuses, but were aggressive on DTI (approved me with 49%).

I purchased with Wells, they counted RSUs and bonuses with 2 year history. This was prior to employer change.

All banks place a substantial margin on ARM loans (what I am interested in). BoA and Chase require you to qualify at the rate given + 2% as debt within their DTI restrictions.

Anyone have any more data points / insight?
Does any bank count RSUs if vested across multiple employers?
Does any bank have more relaxed margins on ARM loans or DTI levels?
Last edited by drekin on Tue Jul 06, 2021 1:21 am, edited 3 times in total.
anilj
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Re: Relationship mortgage discounts for moving a million assets

Post by anilj »

I think you might have to keep shopping around for one that is flexible… how about PNC? The 2 year rules suck but maybe it’s good. This whole market is a bit sketchy now though. If for some reason the stock market crashes, can people even afford the homes (and the subsequent RSUs value drop)?

I think if anything, banks should count RSUs at 50% or much much more conservatively. I don’t know, it’s feeling like a bubble.
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softwaregeek
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Re: Relationship mortgage discounts for moving a million assets

Post by softwaregeek »

Try first republic. Very conservative but at times they have offered competitive rates and they lend a lot in SF.
drekin
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Re: Relationship mortgage discounts for moving a million assets

Post by drekin »

If for some reason the stock market crashes, can people even afford the homes (and the subsequent RSUs value drop)?
I think most tech workers are conservative already, but the banks feel unreasonably so. Even if my company stock crashed 95% I would qualify for the loan if they counted that as equivalent to salary.
Try first republic. Very conservative but at times they have offered competitive rates and they lend a lot in SF.
How are their rates and do they have relationship discounts? I was locked at 1.75% with BoA and negative 0.5 points (they would pay me several grand).
triom6
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Re: Relationship mortgage discounts for moving a million assets

Post by triom6 »

drekin wrote: Tue Jul 06, 2021 1:18 am How are their rates and do they have relationship discounts? I was locked at 1.75% with BoA and negative 0.5 points (they would pay me several grand).
What rate are you at right now?
Which ARM are you looking at? IO?

Chase also has relationship discounts and I think they will match BofA and Schwab/Quicken. I think that is the only remaining player you haven't mentioned. I don't know how they treat RSUs.
drekin
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Re: Relationship mortgage discounts for moving a million assets

Post by drekin »

What rate are you at right now?
Which ARM are you looking at? IO?
I am at 2.25% 7/1 ARM with 6.5 years left. Looking for 5/1 or longer with lowest rate possible. IO would be nice but not willing to pay much of a premium, just lowest rate for the next few years to conserve capital.
gordita
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Location: CA

Re: Relationship mortgage discounts for moving a million assets

Post by gordita »

I have an opportunity to go down from the current 3% (Ally) jumbo down to 2.5% (WF) with moving new money.
my main question is, I would have to move my IRA account from TD.
has anyone done this before? can you share the basics around moving IRA's from one brokerage to another?
since it's a retirement account, I cannot make mistakes - the last thing I want is the wrath of IRS.

I wonder how long I need to keep the IRA with Wellstrade before I can move it back to TD.
is the reverse transfer process seamless?

some numbers
location = sf bay area
ltv = 59%
FICO = 800
loan amount > $1.3M+
rate = 2.5% with $1.7K credit for CC (assuming .375 discount for moving > $750K)
drekin
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Re: Relationship mortgage discounts for moving a million assets

Post by drekin »

I would have to move my IRA account from TD.
has anyone done this before?
Done it many times from various brokers to various brokers (not TD specifically though). In all cases it was virtually the same as moving a taxable account. It does not trigger any tax implications or forms, only contributions and distributions do. I would not worry about it.

You can also convert some 401k moneys if you have into Roth IRA to increase your amount, though watch out for forced liquidations or taxabl conversions.
gmang
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Re: Relationship mortgage discounts for moving a million assets

Post by gmang »

drekin wrote: Mon Jul 05, 2021 10:49 pm Anyone have any more data points / insight?
Does any bank count RSUs if vested across multiple employers?
Does any bank have more relaxed margins on ARM loans or DTI levels?
I have a feeling all of this is a negotiation and depends heavily on how well your agent can negotiate the process. My agent at Quicken mentioned that Schwab was buying the note, so he had to work with someone at Schwab to get the pricing approved. If you have someone at Schwab covering you, I would talk to them. If you are willing to move assets (mid-six to 7 figures), they can do interesting things for you beyond relationship mortgage pricing.
Tingting1013
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Re: Relationship mortgage discounts for moving a million assets

Post by Tingting1013 »

One thing to note about Schwab is that, like First Republic, they don’t report the mortgage to credit bureaus. So now I have a 830 credit score despite carrying a $1M mortgage :D
ElliotAlderson
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Re: Relationship mortgage discounts for moving a million assets

Post by ElliotAlderson »

Locked 2.625 + .375% discount - 30yr fixed - Wells Fargo. Bay Area.
126inc
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Re: Relationship mortgage discounts for moving a million assets

Post by 126inc »

Tingting1013 wrote: Wed Jul 07, 2021 10:52 pm One thing to note about Schwab is that, like First Republic, they don’t report the mortgage to credit bureaus. So now I have a 830 credit score despite carrying a $1M mortgage :D
This must be new as I most definitely had it reported even before I refi'd:
Image
Tingting1013
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Re: Relationship mortgage discounts for moving a million assets

Post by Tingting1013 »

systemr wrote: Thu Jul 08, 2021 5:27 pm
Tingting1013 wrote: Wed Jul 07, 2021 10:52 pm One thing to note about Schwab is that, like First Republic, they don’t report the mortgage to credit bureaus. So now I have a 830 credit score despite carrying a $1M mortgage :D
This must be new as I most definitely had it reported even before I refi'd:
Image
Was this a 30 year fixed or ARM? Mine was an ARM and was not reported
126inc
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Re: Relationship mortgage discounts for moving a million assets

Post by 126inc »

Tingting1013 wrote: Thu Jul 08, 2021 5:56 pm Was this a 30 year fixed or ARM? Mine was an ARM and was not reported
30 fixed that must be it. i think FRB has great flexibility and service but they aren't competitive IME when it comes to rates and how the new relationship discounts work

For the relationship aspect, we are looking at %’s now mostly and 15% of the loan amount for a period of 2 years provides competitive pricing.
okdeal
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Re: Relationship mortgage discounts for moving a million assets

Post by okdeal »

I closed today and got a great deal with Schwab / Quicken Loans-Rocket Mortgage.

I got 1.875% on a 7 year interest only, $1.2m loan; (only $200 of closing costs), had to move $1m of assets over to get that rate (0.5% discount)
Location: SoCal

Definitely thanks to all the posters in this thread.

Started out with BofA offering 2.25% if I moved $500k of assets and that would cost me $3500.

Then Union Bank beat that rate by offering 2.25% at zero cost

Then Schwab / Quicken Loans asked me what it would take to earn my business. I said 2.125% with no cost. The first night the loan officer called and said he couldn't do it, but was still working on it. The next night he said he got it approved--2.125%, for a cost of $200 and only having to move $250k of assets. I asked what if I moved $1m over, and he said then the rate would be 1.875%, same costs.

Quicken Loans does all the underwriting, it was a slick process and took 33 days total.
mgmd
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Re: Relationship mortgage discounts for moving a million assets

Post by mgmd »

CAorTX wrote: Fri Jun 11, 2021 10:19 pm
jimjam600 wrote: Fri Jun 11, 2021 6:21 pm Does anyone have a good loan officer at Bank of America and/or Wells Fargo in the Bay Area (East Bay-ideally, but doesn't matter) that they'd be willing to share? And who could work fast?

Thank you very much.
I have been happy with both my Wells Fargo (used for original purchase) and my BoA contacts (now using for the 2nd) time... both bay area (Santa Clara/Fremont) happy to provide if you still need contacts, DM me if so.
Thank you CAorTX and everyone contributing. I would be interested in your WF and BofA contacts. I recently registered so not sure when I can send DMs.

Thank you!
user59
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Re: Relationship mortgage discounts for moving a million assets

Post by user59 »

Late last week I locked in a rate of 2.5% (after relationship discount) with Wells Fargo for a 30-year fixed mortgage with no points and enough credit to cover costs. This is for a cashout refinance for a jumbo loan in San Francisco Bay Area. PM me if you are interested in my WF contact.
Vhn7r
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Re: Relationship mortgage discounts for moving a million assets

Post by Vhn7r »

I recently closed on a jumbo loan with Chase, 30 year fixed at 2.375%, no points, including relationship discount. I originally was going to go with Ally's, who quoted me 2.875%. Chase matched it, and after I moved assets, gave me an additional 0.5% off. It was apparently a mistake on their part as they were not supposed to stack the discount on top of matching rates, so we had a tense few days of escalating the issue to their higher managers til they finally relented and gave us the deal. Very happy with the outcome, but I'm not sure if it is replicable.
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Silly Wabbit
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Re: Relationship mortgage discounts for moving a million assets

Post by Silly Wabbit »

I locked a 1.75% with Schwab (through Quicken Loans/Rocket Mortgage). Jumbo, 30 year-5/6-month ARM, with negative costs, .5% discount for 1m in new assets. Would have been 1.5% with no points/credits.

I shopped BofA and Schwab, Schwab matched BofA's undiscounted rate of 2%.
smby
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Re: Relationship mortgage discounts for moving a million assets

Post by smby »

Silly Wabbit wrote: Thu Jul 15, 2021 4:38 pm I locked a 1.75% with Schwab (through Quicken Loans/Rocket Mortgage). Jumbo, 30 year-5/6-month ARM, with negative costs, .5% discount for 1m in new assets. Would have been 1.5% with no points/credits.

I shopped BofA and Schwab, Schwab matched BofA's undiscounted rate of 2%.
Just locked 5/6 ARM at 1.7% no cost at Schwab with $1M relationship
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softwaregeek
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Re: Relationship mortgage discounts for moving a million assets

Post by softwaregeek »

xerxes101 wrote: Sun Jun 13, 2021 9:56 am Who are the main contenders in this space,
so far I have:

B of A
Wells Fargo
Citi
Chase
Quicken / Charles Schwab

In my experience B of A has been very competitive, but I was wondering if there are any other honorable mentions.
I seem to recall there was another player which was in the Bay Area only (Fremont Bank maybe?)
First republic. But they seem to have fallen out in the last year. I suspect there are many more if you know the right people.
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