Finding the best rate - SoCal jumbo mortgage

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
Topic Author
fyre4ce
Posts: 771
Joined: Sun Aug 06, 2017 11:29 am

Finding the best rate - SoCal jumbo mortgage

Post by fyre4ce » Mon Jun 15, 2020 12:42 pm

I'm about to put an offer on a ~$1.6M home in Southern California. I already have a banking relationship with Chase, and from what they tell me and what I've seen here on BH, they tend to have competitive rates on jumbo mortgages. Anyone have recommendations on how to shop around and make sure I'm getting the best rate? Other lenders that BH's have had good experiences with? Also, I've never used a mortgage broker before - is that worth investigating?

Thanks!

Topic Author
fyre4ce
Posts: 771
Joined: Sun Aug 06, 2017 11:29 am

Re: Finding the best rate - SoCal jumbo mortgage

Post by fyre4ce » Mon Jun 15, 2020 10:19 pm

Update: called around to a bunch of lenders today. Best rates were Chase (3.125% with 0.013% lender credit) and CIT Bank (3.025% with 0.084% loan cost). Both are offering some form of relationship discount. Chase is offering 0.5% (!) with moving $500k non-retirement assets, which I can do with a gift from a family member. CIT is offering 0.1% for moving 10% of the loan amount into their savings account, and 0.2% for 25%. Neither have any requirement to leave it in there for any length of time. Chase was enthusiastic about wanting my business and said they'd meet any other offers.

Should I ask Chase to meet the 3.025% rate, and then put the rate discount, and also one purchased point on top of it?

Also, any other suggestions for a good lender that might offer a competitive rate would be appreciated. Thanks.

sailaway
Posts: 1850
Joined: Fri May 12, 2017 1:11 pm

Re: Finding the best rate - SoCal jumbo mortgage

Post by sailaway » Mon Jun 15, 2020 10:21 pm

Last minute gifts from family members tend to make mortgage underwriters very, very nervous.

Topic Author
fyre4ce
Posts: 771
Joined: Sun Aug 06, 2017 11:29 am

Re: Finding the best rate - SoCal jumbo mortgage

Post by fyre4ce » Mon Jun 15, 2020 11:22 pm

sailaway wrote:
Mon Jun 15, 2020 10:21 pm
Last minute gifts from family members tend to make mortgage underwriters very, very nervous.
I don't care how they feel, as long as I get the loan at the rate I want. Are you suggesting the deal won't go through? To be clear, the none of the gift will be used for the down payment, just to meet the requirement for rate discount.

ChiKid24
Posts: 283
Joined: Fri Aug 09, 2019 3:43 pm

Re: Finding the best rate - SoCal jumbo mortgage

Post by ChiKid24 » Tue Jun 16, 2020 12:34 am

fyre4ce wrote:
Mon Jun 15, 2020 11:22 pm
sailaway wrote:
Mon Jun 15, 2020 10:21 pm
Last minute gifts from family members tend to make mortgage underwriters very, very nervous.
I don't care how they feel, as long as I get the loan at the rate I want. Are you suggesting the deal won't go through? To be clear, the none of the gift will be used for the down payment, just to meet the requirement for rate discount.
Cash is fungible. If you didn't get the gift you wouldn't be able to either 1) Pay the down payment, or 2) meet the requirement for the rate discount. The bank could easily say your cash is being used for the rate discount, but someone else is helping with the down payment, right? Banks want you to have the skin in the game as the lender. It makes you less likely to default on the loan. One of the reasons they ask for a few months of bank statements is so that they can see if there are any mysterious gift deposits into your account that might not be your skin in the game. So yes, this could put their willingness to lend to you at risk.

jsapiandante
Posts: 127
Joined: Thu Jul 30, 2015 5:58 pm

Re: Finding the best rate - SoCal jumbo mortgage

Post by jsapiandante » Tue Jun 16, 2020 1:11 am

[/quote]

Cash is fungible. If you didn't get the gift you wouldn't be able to either 1) Pay the down payment, or 2) meet the requirement for the rate discount. The bank could easily say your cash is being used for the rate discount, but someone else is helping with the down payment, right? Banks want you to have the skin in the game as the lender. It makes you less likely to default on the loan. One of the reasons they ask for a few months of bank statements is so that they can see if there are any mysterious gift deposits into your account that might not be your skin in the game. So yes, this could put their willingness to lend to you at risk.
[/quote]

This. My friend who’s a mortgage broker for Wells Fargo when I bought my home in SoCal specifically told me about getting money from family members prior to closing. They want to make sure that they are the only ones being owed money to.

LFKB
Posts: 707
Joined: Mon Dec 24, 2012 7:06 pm

Re: Finding the best rate - SoCal jumbo mortgage

Post by LFKB » Tue Jun 16, 2020 1:24 am

Chase is not great. I have shopped rates a few times and they’ve never been competitive. I am in a jumbo in So Cal and just closed my refi through BofA in May on a 10 year ARM IO at 2.375%. If it had been a purchase not a refi I could’ve gotten 2%. Citi and Wells were competitive, but Chase was not.

LFKB
Posts: 707
Joined: Mon Dec 24, 2012 7:06 pm

Re: Finding the best rate - SoCal jumbo mortgage

Post by LFKB » Tue Jun 16, 2020 1:28 am

fyre4ce wrote:
Mon Jun 15, 2020 10:19 pm
Update: called around to a bunch of lenders today. Best rates were Chase (3.125% with 0.013% lender credit) and CIT Bank (3.025% with 0.084% loan cost). Both are offering some form of relationship discount. Chase is offering 0.5% (!) with moving $500k non-retirement assets, which I can do with a gift from a family member. CIT is offering 0.1% for moving 10% of the loan amount into their savings account, and 0.2% for 25%. Neither have any requirement to leave it in there for any length of time. Chase was enthusiastic about wanting my business and said they'd meet any other offers.

Should I ask Chase to meet the 3.025% rate, and then put the rate discount, and also one purchased point on top of it?

Also, any other suggestions for a good lender that might offer a competitive rate would be appreciated. Thanks.
You should ask your contact about the gift. Most banks will comb through your last two months statements and disqualify anything that came in as a gift or loan. Not sure all are this way, but I know three that I’ve dealt with that are.

Goal33
Posts: 1305
Joined: Sun Apr 12, 2015 12:30 pm

Re: Finding the best rate - SoCal jumbo mortgage

Post by Goal33 » Tue Jun 16, 2020 1:56 am

I just did a jumbo mortgage and I shopped it everywhere.

Citi knocked it out of the park, they beat all the other banks by .125 and included 1% in lender credits. This was with 200k in relationship, 50k had to be cash. Chase couldn't match.

I also had a "gift" with associated gift letter. I needed my dad's money to put towards the down payment because of the 50k cash requirement from citi.

Definitely check citi.

Good luck
A man with one watch always knows what time it is; a man with two watches is never sure.

snailderby
Posts: 1085
Joined: Thu Jul 26, 2018 11:30 am

Re: Finding the best rate - SoCal jumbo mortgage

Post by snailderby » Tue Jun 16, 2020 7:50 am

1. For ideas on potential lenders to shop around with, check out the Refinance Mega Thread. A few lenders that may be worth checking out include Better, Owning, LenderFi, Aim Loans, Box Home Loans, Northpointe Bank, and First Internet Bank of Indiana, but this is by no means an exhaustive list.

2. The down payment for our first mortgage was covered in part by a gift from family member. We had to jump through a few hoops to document that gift, but it ultimately worked out. YMMV.

mervinj7
Posts: 1480
Joined: Thu Mar 27, 2014 3:10 pm

Re: Finding the best rate - SoCal jumbo mortgage

Post by mervinj7 » Tue Jun 16, 2020 8:50 am

snailderby wrote:
Tue Jun 16, 2020 7:50 am
1. For ideas on potential lenders to shop around with, check out the Refinance Mega Thread. A few lenders that may be worth checking out include Better, Owning, LenderFi, Aim Loans, Box Home Loans, Northpointe Bank, and First Internet Bank of Indiana, but this is by no means an exhaustive list.
I believe OP is looking for jumbo loans. I didn't think anybody on that list is doing competitive jumbo loans right now or at least they haven't been mentioned here.

snailderby
Posts: 1085
Joined: Thu Jul 26, 2018 11:30 am

Re: Finding the best rate - SoCal jumbo mortgage

Post by snailderby » Tue Jun 16, 2020 1:10 pm

mervinj7 wrote:
Tue Jun 16, 2020 8:50 am
snailderby wrote:
Tue Jun 16, 2020 7:50 am
1. For ideas on potential lenders to shop around with, check out the Refinance Mega Thread. A few lenders that may be worth checking out include Better, Owning, LenderFi, Aim Loans, Box Home Loans, Northpointe Bank, and First Internet Bank of Indiana, but this is by no means an exhaustive list.
I believe OP is looking for jumbo loans. I didn't think anybody on that list is doing competitive jumbo loans right now or at least they haven't been mentioned here.
Ah. My bad. I know nothing about jumbo loans.

Topic Author
fyre4ce
Posts: 771
Joined: Sun Aug 06, 2017 11:29 am

Re: Finding the best rate - SoCal jumbo mortgage

Post by fyre4ce » Tue Jun 16, 2020 4:48 pm

Goal33 wrote:
Tue Jun 16, 2020 1:56 am
I just did a jumbo mortgage and I shopped it everywhere.

Citi knocked it out of the park, they beat all the other banks by .125 and included 1% in lender credits. This was with 200k in relationship, 50k had to be cash. Chase couldn't match.

I also had a "gift" with associated gift letter. I needed my dad's money to put towards the down payment because of the 50k cash requirement from citi.

Definitely check citi.

Good luck
On their website, Citi is quoting 3.25% with 0.75 points, which isn't so great. Was your best rate advertised on their website or did you have to call?

Goal33
Posts: 1305
Joined: Sun Apr 12, 2015 12:30 pm

Re: Finding the best rate - SoCal jumbo mortgage

Post by Goal33 » Tue Jun 16, 2020 5:11 pm

I have found that the online rates are meaningless...

I think at the time my rate was .25 better than what I saw online, and online said you'd have to pay a point, whereas I was getting a point back in lender credits.

Once you call they can offer concessions for things like credit score, reserves, relationships, etc...

I started with Chase private bank. Then I went to Wells with the Chase rate, and the mortgage broker said "I can't touch that rate, but my buddy at Citi can beat it", so he referred me over. So, I may have gotten lucky? The guy at Citi knew my only criteria was cost. He offered a much better rate than I could get anywhere. Every other broker I talked to after told me they aren't close and to be sure I have locked the rate.
A man with one watch always knows what time it is; a man with two watches is never sure.

cowbman
Posts: 184
Joined: Sat Jan 14, 2017 2:10 pm

Re: Finding the best rate - SoCal jumbo mortgage

Post by cowbman » Tue Jun 16, 2020 7:48 pm

OP, It would depend a lot on your specifics. One thing to consider is if you have assets you can move over, frequently you can discounts on the rates. There's a whole forum on this:

viewtopic.php?f=2&t=280692

jasonrecite25
Posts: 67
Joined: Tue Apr 11, 2017 1:16 pm

Re: Finding the best rate - SoCal jumbo mortgage

Post by jasonrecite25 » Tue Jun 16, 2020 8:27 pm

I just did a 800k jumbo 30 year fixed at 2.9 APR last month with Wells Fargo in Northern CA. That includes a .25 discount for 500k in my checking account. That 500k was mostly my down payment and included a 120k "gift" from a family member to get me above 500. Underwriting obviously looked at it, but with other substantial assets (own a 700k home and retirement/taxable investments and have a 800 some plus credit rating) they really didn't care. The mortgage consultant worked with me to get the 500k in at the right time, he then triggered the step for a separate team to confirm the 500, I locked in on the discount, closed the deal and the balance is now well under 500. At one point he told me we were "cooking the books" to get the discount! 😳 ... but it was all legit and we played by the rules. The rules are just a bit sloppy and I am sure they would change the rules if they cared... they are not idiots and they know what people do.

Anyway, my Wells consultant was a rockstar and while their online portal for working through the process beats faxing docs to a small credit union, I started to get annoyed with the amount of documentation I was providing... though I assume normal for big loans. We ended up closing in about 20 days, primarily due to my Wells consultant being a rockstar and me having docs turned around on a daily basis. Get a good printer and scanner, you will need it.

I am no mortgage expert, but here are some things I observed or learned, YMMV:
--Jumbos seemed a lot easier to shop for since you're dealing with mostly big banks. You can quickly get a quote based on core assumptions and deal them against each other.
--Most of the big banks have local branches, so all other things equal, you will have a edge on a new home purchase as the selling agent will like that you're coming to the table with a big local bank (not a online lender).
--Most of the big banks have user friendly online portals for working through the process. Since you have to upload a million documents, having a quick and organized way to do that online is very nice... my old loan was with a small local firm and everything was via paper and fax... what a nightmare.
--If you go with a big bank, ask your realtor (if you're using one and assuming they work for a med/large size firm) to get individual recommendations for a consultant and your big bank. Our consultant handled EVERYTHING. At one point Wells introduced their "loan processor" and their underwriter to me, but my consultant was so good he knew everything they would ask for, when they would ask for it and all the nitty gritty details that we mostly took care of ahead of time. It made the loan/underwriting process very smooth.
--Per my comment above, get a good printer and scanner since through both the loan process and home buying process you will often have to print random California disclosures and weird stuff that forces you to print, sign, scan, upload, etc. Also helps to have Adobe Acrobat (not Pro necessarily) so you can fill out docs, electronically sign, etc.
--Also was helpful our realtor worked for a larger brokerage that pushed all of our docs through DocuSign (again this was great vs. prior deal with a 2 person brokerage and everything printing paper).

eosin
Posts: 29
Joined: Tue Jun 09, 2020 12:33 am

Re: Finding the best rate - SoCal jumbo mortgage

Post by eosin » Tue Jun 16, 2020 10:04 pm

I just finished a “no cost” refi in LA area with Citibank. $1.25M 30YF loan at 3.125% with roughly 75% LTV. Locked the rate back in mid-March. Had to move $50K to get the 3.125% (otherwise would have been 3.25%).

Count of Notre Dame
Posts: 211
Joined: Fri Oct 11, 2013 1:08 pm

Re: Finding the best rate - SoCal jumbo mortgage

Post by Count of Notre Dame » Thu Jun 18, 2020 11:58 am

First Republic

U.S. Bank

Bank of America

liberty53
Posts: 71
Joined: Sat Oct 18, 2014 7:31 am
Location: Boston Area

Re: Finding the best rate - SoCal jumbo mortgage

Post by liberty53 » Thu Jun 18, 2020 12:16 pm

Chase - Jumbo - 2.375% with 1.7 points. Chase Private Client relationship brought it from 2.5% to 2.375% and also reduced loan fees by $750.

I'm putting 30% down and credit rating > 800

mervinj7
Posts: 1480
Joined: Thu Mar 27, 2014 3:10 pm

Re: Finding the best rate - SoCal jumbo mortgage

Post by mervinj7 » Thu Jun 18, 2020 12:40 pm

liberty53 wrote:
Thu Jun 18, 2020 12:16 pm
Chase - Jumbo - 2.375% with 1.7 points. Chase Private Client relationship brought it from 2.5% to 2.375% and also reduced loan fees by $750.

I'm putting 30% down and credit rating > 800
1.7 points on a jumbo seems ouchy. What was the no point rate? Are there closing costs on top of this?

liberty53
Posts: 71
Joined: Sat Oct 18, 2014 7:31 am
Location: Boston Area

Re: Finding the best rate - SoCal jumbo mortgage

Post by liberty53 » Thu Jun 18, 2020 12:44 pm

mervinj7 wrote:
Thu Jun 18, 2020 12:40 pm
liberty53 wrote:
Thu Jun 18, 2020 12:16 pm
Chase - Jumbo - 2.375% with 1.7 points. Chase Private Client relationship brought it from 2.5% to 2.375% and also reduced loan fees by $750.

I'm putting 30% down and credit rating > 800
1.7 points on a jumbo seems ouchy. What was the no point rate? Are there closing costs on top of this?
Rate was 3.0% without points. The present value of the points makes it worth it. About $600 for closing costs outside of the normal stuff.

Topic Author
fyre4ce
Posts: 771
Joined: Sun Aug 06, 2017 11:29 am

Re: Finding the best rate - SoCal jumbo mortgage

Post by fyre4ce » Thu Jun 18, 2020 12:51 pm

liberty53 wrote:
Thu Jun 18, 2020 12:16 pm
Chase - Jumbo - 2.375% with 1.7 points. Chase Private Client relationship brought it from 2.5% to 2.375% and also reduced loan fees by $750.

I'm putting 30% down and credit rating > 800
Chase is my leading contender. I went through the details with my loan officer. Base rate is 3.125% that can be brought down to 2.75% with about 1.4 points, then an additional 0.5% reduction for moving over the $500k in taxable assets. I also confirmed that assets can be moved over in-kind, and that the requirement can be met with partially with a gift. So, sounds like I'm good to go for a rate in the 2.25% range, depending on fluctuations between now and when I lock.

User avatar
unclescrooge
Posts: 5071
Joined: Thu Jun 07, 2012 7:00 pm

Re: Finding the best rate - SoCal jumbo mortgage

Post by unclescrooge » Thu Jun 18, 2020 1:32 pm

liberty53 wrote:
Thu Jun 18, 2020 12:44 pm
mervinj7 wrote:
Thu Jun 18, 2020 12:40 pm
liberty53 wrote:
Thu Jun 18, 2020 12:16 pm
Chase - Jumbo - 2.375% with 1.7 points. Chase Private Client relationship brought it from 2.5% to 2.375% and also reduced loan fees by $750.

I'm putting 30% down and credit rating > 800
1.7 points on a jumbo seems ouchy. What was the no point rate? Are there closing costs on top of this?
Rate was 3.0% without points. The present value of the points makes it worth it. About $600 for closing costs outside of the normal stuff.
30 year fixed?

liberty53
Posts: 71
Joined: Sat Oct 18, 2014 7:31 am
Location: Boston Area

Re: Finding the best rate - SoCal jumbo mortgage

Post by liberty53 » Thu Jun 18, 2020 1:35 pm

unclescrooge wrote:
Thu Jun 18, 2020 1:32 pm
liberty53 wrote:
Thu Jun 18, 2020 12:44 pm
mervinj7 wrote:
Thu Jun 18, 2020 12:40 pm
liberty53 wrote:
Thu Jun 18, 2020 12:16 pm
Chase - Jumbo - 2.375% with 1.7 points. Chase Private Client relationship brought it from 2.5% to 2.375% and also reduced loan fees by $750.

I'm putting 30% down and credit rating > 800
1.7 points on a jumbo seems ouchy. What was the no point rate? Are there closing costs on top of this?
Rate was 3.0% without points. The present value of the points makes it worth it. About $600 for closing costs outside of the normal stuff.
30 year fixed?
Yes

cowbman
Posts: 184
Joined: Sat Jan 14, 2017 2:10 pm

Re: Finding the best rate - SoCal jumbo mortgage

Post by cowbman » Thu Jun 18, 2020 1:42 pm

jasonrecite25 wrote:
Tue Jun 16, 2020 8:27 pm
I just did a 800k jumbo 30 year fixed at 2.9 APR last month with Wells Fargo in Northern CA. That includes a .25 discount for 500k in my checking account. That 500k was mostly my down payment and included a 120k "gift" from a family member to get me above 500. Underwriting obviously looked at it, but with other substantial assets (own a 700k home and retirement/taxable investments and have a 800 some plus credit rating) they really didn't care. The mortgage consultant worked with me to get the 500k in at the right time, he then triggered the step for a separate team to confirm the 500, I locked in on the discount, closed the deal and the balance is now well under 500. At one point he told me we were "cooking the books" to get the discount! 😳 ... but it was all legit and we played by the rules. The rules are just a bit sloppy and I am sure they would change the rules if they cared... they are not idiots and they know what people do.

Anyway, my Wells consultant was a rockstar and while their online portal for working through the process beats faxing docs to a small credit union, I started to get annoyed with the amount of documentation I was providing... though I assume normal for big loans. We ended up closing in about 20 days, primarily due to my Wells consultant being a rockstar and me having docs turned around on a daily basis. Get a good printer and scanner, you will need it.

I am no mortgage expert, but here are some things I observed or learned, YMMV:
--Jumbos seemed a lot easier to shop for since you're dealing with mostly big banks. You can quickly get a quote based on core assumptions and deal them against each other.
--Most of the big banks have local branches, so all other things equal, you will have a edge on a new home purchase as the selling agent will like that you're coming to the table with a big local bank (not a online lender).
--Most of the big banks have user friendly online portals for working through the process. Since you have to upload a million documents, having a quick and organized way to do that online is very nice... my old loan was with a small local firm and everything was via paper and fax... what a nightmare.
--If you go with a big bank, ask your realtor (if you're using one and assuming they work for a med/large size firm) to get individual recommendations for a consultant and your big bank. Our consultant handled EVERYTHING. At one point Wells introduced their "loan processor" and their underwriter to me, but my consultant was so good he knew everything they would ask for, when they would ask for it and all the nitty gritty details that we mostly took care of ahead of time. It made the loan/underwriting process very smooth.
--Per my comment above, get a good printer and scanner since through both the loan process and home buying process you will often have to print random California disclosures and weird stuff that forces you to print, sign, scan, upload, etc. Also helps to have Adobe Acrobat (not Pro necessarily) so you can fill out docs, electronically sign, etc.
--Also was helpful our realtor worked for a larger brokerage that pushed all of our docs through DocuSign (again this was great vs. prior deal with a 2 person brokerage and everything printing paper).
Just in the last few weeks WF has made it impossible to get a mortgage if you have rental/investment property. They will count the mortgage on the rental against your DTI, but NOT include rental income for the I in Income! :oops:

User avatar
Go Blue 99
Posts: 937
Joined: Thu Oct 09, 2008 3:42 pm

Re: Finding the best rate - SoCal jumbo mortgage

Post by Go Blue 99 » Sun Aug 02, 2020 8:10 am

We just locked this past week at 2.875% with 0.91 points with Bay Equity. This is on a 30 yr fixed Jumbo for a new home purchase.

We used Wells Fargo on our previous Jumbo. This time the best they could do is 3.0% with 1 pt or 3.375% with zero points.

Post Reply