Relationship mortgage discounts for moving a million assets

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Topic Author
softwaregeek
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Re: Relationship mortgage discounts for moving a million assets

Post by softwaregeek » Fri Oct 04, 2019 9:26 pm

I was curious about refinance rates from hsbc and called since they weren't listed. Exactly .375 higher than new purchase listed on website. I didn't get into details etc but they seemed to be highly competitive at 3.25 at the 1mm elite level.

huai
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Re: Relationship mortgage discounts for moving a million assets

Post by huai » Fri Oct 04, 2019 9:54 pm

Locked in BofA refi last week down from 4.00% original mortgage to 3.25% after 0.25% relationship bonus (500k move) on a 10/1 Jumbo Arm no closing costs + 6k in lender fee credits (meaning they paid for all transfer taxes, etc) no costs out of pocket at all.

Started by calling about 5 or 6 different banks, lowest rates were at HSBC and 5/3 and then called BOFA to match.

KMB
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Location: Chicago-ish, IL

Re: Relationship mortgage discounts for moving a million assets

Post by KMB » Sat Oct 05, 2019 7:44 pm

Just to add details for comparison sake of a refi we are in the midst of:

30 yr fixed, 1.2 mill loan @ 3.625%, no points, closing costs about $1000 all in. Also relationship discounts of:
$250,000-$499,999 the interest rate is lower by .125%
$500,000-$749,999 the interest rate is lower by .250%
$750,000-$1,000,000 the interest rate is lower by .375%
$1,000,000 or more the interest rate is lower by .500%

This was with Wells Fargo, we locked several days ago.

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grabiner
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Re: Relationship mortgage discounts for moving a million assets

Post by grabiner » Sat Oct 05, 2019 8:04 pm

KMB wrote:
Sat Oct 05, 2019 7:44 pm
Just to add details for comparison sake of a refi we are in the midst of:

30 yr fixed, 1.2 mill loan @ 3.625%, no points, closing costs about $1000 all in. Also relationship discounts of:
$250,000-$499,999 the interest rate is lower by .125%
$500,000-$749,999 the interest rate is lower by .250%
$750,000-$1,000,000 the interest rate is lower by .375%
$1,000,000 or more the interest rate is lower by .500%

This was with Wells Fargo, we locked several days ago.
Since one point usually lowers a 30-year rate by .125%, this is effectively a $12,000 rebate on every $250,000 transferred, a 5% rebate. This large a rebate is certainly worth taking, even if the investment options are slightly inferior (commissions on the ETFs you want to trade).
Wiki David Grabiner

Topic Author
softwaregeek
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Re: Relationship mortgage discounts for moving a million assets

Post by softwaregeek » Tue Oct 08, 2019 1:29 pm

Commissions at wellstrade are about three bucks. Not worth worrying about.

SobeCane
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Re: Relationship mortgage discounts for moving a million assets

Post by SobeCane » Fri Oct 11, 2019 11:20 am

grabiner wrote:
Sat Oct 05, 2019 8:04 pm
KMB wrote:
Sat Oct 05, 2019 7:44 pm
Just to add details for comparison sake of a refi we are in the midst of:

30 yr fixed, 1.2 mill loan @ 3.625%, no points, closing costs about $1000 all in. Also relationship discounts of:
$250,000-$499,999 the interest rate is lower by .125%
$500,000-$749,999 the interest rate is lower by .250%
$750,000-$1,000,000 the interest rate is lower by .375%
$1,000,000 or more the interest rate is lower by .500%

This was with Wells Fargo, we locked several days ago.
Since one point usually lowers a 30-year rate by .125%, this is effectively a $12,000 rebate on every $250,000 transferred, a 5% rebate. This large a rebate is certainly worth taking, even if the investment options are slightly inferior (commissions on the ETFs you want to trade).
What happens if you move the assets out afterwards?

spacecadet610
Posts: 51
Joined: Sun Aug 26, 2012 1:41 pm

Re: Relationship mortgage discounts for moving a million assets

Post by spacecadet610 » Fri Oct 11, 2019 11:37 am

SobeCane wrote:
Fri Oct 11, 2019 11:20 am
grabiner wrote:
Sat Oct 05, 2019 8:04 pm
KMB wrote:
Sat Oct 05, 2019 7:44 pm
Just to add details for comparison sake of a refi we are in the midst of:

30 yr fixed, 1.2 mill loan @ 3.625%, no points, closing costs about $1000 all in. Also relationship discounts of:
$250,000-$499,999 the interest rate is lower by .125%
$500,000-$749,999 the interest rate is lower by .250%
$750,000-$1,000,000 the interest rate is lower by .375%
$1,000,000 or more the interest rate is lower by .500%

This was with Wells Fargo, we locked several days ago.
Since one point usually lowers a 30-year rate by .125%, this is effectively a $12,000 rebate on every $250,000 transferred, a 5% rebate. This large a rebate is certainly worth taking, even if the investment options are slightly inferior (commissions on the ETFs you want to trade).
What happens if you move the assets out afterwards?
They can't do anything if you move assets out. Your mortgage is locked in.

I did it twice with Bank of America, once for primary mortgage and again for refinance. Moved assets in, then back out.

DEBTINATOR
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Joined: Thu Oct 20, 2011 8:05 pm

Re: Relationship mortgage discounts for moving a million assets

Post by DEBTINATOR » Mon Oct 14, 2019 1:21 pm

spacecadet610 wrote:
Fri Oct 11, 2019 11:37 am
SobeCane wrote:
Fri Oct 11, 2019 11:20 am
grabiner wrote:
Sat Oct 05, 2019 8:04 pm
KMB wrote:
Sat Oct 05, 2019 7:44 pm
Just to add details for comparison sake of a refi we are in the midst of:

30 yr fixed, 1.2 mill loan @ 3.625%, no points, closing costs about $1000 all in. Also relationship discounts of:
$250,000-$499,999 the interest rate is lower by .125%
$500,000-$749,999 the interest rate is lower by .250%
$750,000-$1,000,000 the interest rate is lower by .375%
$1,000,000 or more the interest rate is lower by .500%

This was with Wells Fargo, we locked several days ago.
Since one point usually lowers a 30-year rate by .125%, this is effectively a $12,000 rebate on every $250,000 transferred, a 5% rebate. This large a rebate is certainly worth taking, even if the investment options are slightly inferior (commissions on the ETFs you want to trade).
What happens if you move the assets out afterwards?
They can't do anything if you move assets out. Your mortgage is locked in.

I did it twice with Bank of America, once for primary mortgage and again for refinance. Moved assets in, then back out.
Spacecadet, have you done this recently? That was my understanding as well. The mortgage officer even mentioned this during closing, but a BofA banker recently said there is some type of “waiting period.” I think she was wrong, but want to be careful.

I’m past 90 days for the small transfer bonuses.

Xmemon
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Re: Relationship mortgage discounts for moving a million assets

Post by Xmemon » Thu Oct 24, 2019 7:09 am

softwaregeek wrote:
Thu Jun 20, 2019 1:59 pm


Wells told me an unbelievable thing. They let you use the relationship mortgage balance as a down payment. So of you have a 250 down payment and a 250 IRA, you can get 0.25 off the mortgage.

Not sure I believe either of these without verification, but you should ask.
Did anyone else experience this with WF. They just as well that out would count towards the down payment. But I don’t want them to pull something at the last minute.

Are there other backs which would let you dip from your relationship money to pay the down payment?

Lubricious
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Re: Relationship mortgage discounts for moving a million assets

Post by Lubricious » Thu Oct 31, 2019 7:27 am

Xmemon wrote:
Thu Oct 24, 2019 7:09 am
softwaregeek wrote:
Thu Jun 20, 2019 1:59 pm


Wells told me an unbelievable thing. They let you use the relationship mortgage balance as a down payment. So of you have a 250 down payment and a 250 IRA, you can get 0.25 off the mortgage.

Not sure I believe either of these without verification, but you should ask.
Did anyone else experience this with WF. They just as well that out would count towards the down payment. But I don’t want them to pull something at the last minute.

Are there other backs which would let you dip from your relationship money to pay the down payment?
This worked for us. We closed on a house in 2018 using WF relationship discount. Just moved over $500k into a WF checking account for the rate lock. Then had a cashier’s check from WF for the same amount at closing to cover part of the down. Odd policy, I know. But they assured me it was no problem and it wasn’t.

Good luck!

Xmemon
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Re: Relationship mortgage discounts for moving a million assets

Post by Xmemon » Thu Oct 31, 2019 9:43 am

Lubricious wrote:
Thu Oct 31, 2019 7:27 am
Xmemon wrote:
Thu Oct 24, 2019 7:09 am
softwaregeek wrote:
Thu Jun 20, 2019 1:59 pm


Wells told me an unbelievable thing. They let you use the relationship mortgage balance as a down payment. So of you have a 250 down payment and a 250 IRA, you can get 0.25 off the mortgage.

Not sure I believe either of these without verification, but you should ask.
Did anyone else experience this with WF. They just told me as well that out would count towards the down payment. But I don’t want them to pull something at the last minute.

Are there other banks which would let you dip from your relationship money to pay the down payment?
This worked for us. We closed on a house in 2018 using WF relationship discount. Just moved over $500k into a WF checking account for the rate lock. Then had a cashier’s check from WF for the same amount at closing to cover part of the down. Odd policy, I know. But they assured me it was no problem and it wasn’t.

Good luck!
Great, Thanks! I'm in the middle of the process now!

Catherinehoo
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Joined: Fri Nov 01, 2019 12:18 pm

Re: Relationship mortgage discounts for moving a million assets

Post by Catherinehoo » Fri Nov 01, 2019 12:29 pm

Hi, This topic is very interesting.

Wells Fargo has a relationship with my employer and offers a .50 basis point discount on all posted rates. Thus, I don't have to transfer any money to get the lower rate, which is great.

I'm deciding between a 10/1 ARM at 2.5% and a 30-year fixed at 3.00%. It's a good problem to have, but I keep going back and forth. I would have the means to pay off the mortgage after 10 years if rates were to spike. It will be my first home, so statistically, I'm more likely to move sooner rather than later, but the future is always hard to predict.

desi_kalle
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Re: Relationship mortgage discounts for moving a million assets

Post by desi_kalle » Sun Dec 01, 2019 12:09 am

Catherinehoo wrote:
Fri Nov 01, 2019 12:29 pm
Wells Fargo has a relationship with my employer and offers a .50 basis point discount on all posted rates. Thus, I don't have to transfer any money to get the lower rate, which is great.
Is the benefit really .50 basis point discount on the actual mortgage rate? That's an incredible benefit.. My employer has a mortgage benefit as well, but it's a .25 basis point credit toward closing costs.

desi_kalle
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Re: Relationship mortgage discounts for moving a million assets

Post by desi_kalle » Sun Dec 01, 2019 12:59 am

For those in CA, Owning.com offers super competitive fixed rates without any asset transfers (<60% LTV required). Current rates are 3.5% for 30 yr and 2.875% for 15 yr. Both have no closing costs (yes, true no CC). The optimal strategy is to use this rate and get big banks to match and then get a lower rate by moving assets over.

quizzer25
Posts: 123
Joined: Fri Dec 26, 2014 3:28 am

Re: Relationship mortgage discounts for moving a million assets

Post by quizzer25 » Sun Dec 01, 2019 3:13 am

desi_kalle wrote:
Sun Dec 01, 2019 12:59 am
For those in CA, Owning.com offers super competitive fixed rates without any asset transfers (<60% LTV required). Current rates are 3.5% for 30 yr and 2.875% for 15 yr. Both have no closing costs (yes, true no CC). The optimal strategy is to use this rate and get big banks to match and then get a lower rate by moving assets over.
I'm in CA and looking at refinancing to 15 years mortgage. Did you get any banks to beat Owning's 2.875%?

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unclescrooge
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Re: Relationship mortgage discounts for moving a million assets

Post by unclescrooge » Sun Dec 01, 2019 8:03 am

desi_kalle wrote:
Sun Dec 01, 2019 12:59 am
For those in CA, Owning.com offers super competitive fixed rates without any asset transfers (<60% LTV required). Current rates are 3.5% for 30 yr and 2.875% for 15 yr. Both have no closing costs (yes, true no CC). The optimal strategy is to use this rate and get big banks to match and then get a lower rate by moving assets over.
Do they offer ARMs?

desi_kalle
Posts: 25
Joined: Thu Mar 24, 2016 11:41 pm

Re: Relationship mortgage discounts for moving a million assets

Post by desi_kalle » Wed Dec 04, 2019 12:18 am

quizzer25 wrote:
Sun Dec 01, 2019 3:13 am
desi_kalle wrote:
Sun Dec 01, 2019 12:59 am
For those in CA, Owning.com offers super competitive fixed rates without any asset transfers (<60% LTV required). Current rates are 3.5% for 30 yr and 2.875% for 15 yr. Both have no closing costs (yes, true no CC). The optimal strategy is to use this rate and get big banks to match and then get a lower rate by moving assets over.
I'm in CA and looking at refinancing to 15 years mortgage. Did you get any banks to beat Owning's 2.875%?
All the big banks I spoke to won't beat the offer. Only match it and then I can bring assets over to bring the rate down .125% per 250k.
unclescrooge wrote:
Sun Dec 01, 2019 8:03 am
desi_kalle wrote:
Sun Dec 01, 2019 12:59 am
For those in CA, Owning.com offers super competitive fixed rates without any asset transfers (<60% LTV required). Current rates are 3.5% for 30 yr and 2.875% for 15 yr. Both have no closing costs (yes, true no CC). The optimal strategy is to use this rate and get big banks to match and then get a lower rate by moving assets over.
Do they offer ARMs?
I only see fixed rates on their website. They keep things simple to keep their rates rock bottom.

Topic Author
softwaregeek
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Re: Relationship mortgage discounts for moving a million assets

Post by softwaregeek » Tue Dec 10, 2019 11:38 pm

Does that mean matching it down to 3.0 on a 30 year fixed?

HonestAbe
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Re: Relationship mortgage discounts for moving a million assets

Post by HonestAbe » Fri Jan 10, 2020 10:07 am

Posting to see if anyone has updated rates for relationship-based mortgages. Below are rates I received from JPMorgan earlier this week:

Image

They allow 15% down payments without PMI. They also don't require points or any other fees other than those "to cover third-party costs incurred on a client’s behalf, such as appraisals."

How do these rates and other features of the offering compare to what others here are seeing?

Chiron
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Re: Relationship mortgage discounts for moving a million assets

Post by Chiron » Fri Jan 10, 2020 11:00 am

RJ is still at 2.625% for 5/1 with no relationship with $1100 origination.

If you are eligible, Navy Federal has excellent 3/1 rates and competitive 5/1 or 5/5 rates with no relationship. I just closed a 3/1 jumbo with no points/origination at 2.375 and they have gone down since then. I was eligible through a grandparent.

https://www.navyfederal.org/assets/rates/view-all.php

sc9182
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Re: Relationship mortgage discounts for moving a million assets

Post by sc9182 » Tue Jan 14, 2020 1:58 pm

Chiron wrote:
Fri Jan 10, 2020 11:00 am
RJ is still at 2.625% for 5/1 with no relationship with $1100 origination.

If you are eligible, Navy Federal has excellent 3/1 rates and competitive 5/1 or 5/5 rates with no relationship. I just closed a 3/1 jumbo with no points/origination at 2.375 and they have gone down since then. I was eligible through a grandparent.

https://www.navyfederal.org/assets/rates/view-all.php
Good rates if you can get waiver on 1% origination fee !

How did you get around Navy Federal 1% origination fee !? Bumped rate up by 0.25% ?

sc9182
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Re: Relationship mortgage discounts for moving a million assets

Post by sc9182 » Tue Jan 14, 2020 2:07 pm

HonestAbe wrote:
Fri Jan 10, 2020 10:07 am
Posting to see if anyone has updated rates for relationship-based mortgages. Below are rates I received from JPMorgan earlier this week:

They allow 15% down payments without PMI. They also don't require points or any other fees other than those "to cover third-party costs incurred on a client’s behalf, such as appraisals."

How do these rates and other features of the offering compare to what others here are seeing?
I think you can model their current rates:

https://apply.chase.com/mortgage/CRQ/Cu ... Quote.aspx

The magic is work with relationship banker to get their lowest possible rate (usually with about 2% points charged) then bargain to waive those pesky points - and/or cross shop with BoA relationship team to beat their competitors rate (with zero points of course). Then layer with your relationship discount by bringing net new moneys.

Recently a bud got 2.875% rate on 10/1, which he took to WF, to have match rate plus points waived, then got extra 0.5% rate reduction upon bringing lots of new moneys to WF. Final rate of 2.375 on 10/1 for this hassle! Better yet this was for Interest Only rate ! ‘‘twas one heck of a deal!

Chiron
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Joined: Tue Jun 04, 2013 4:20 pm

Re: Relationship mortgage discounts for moving a million assets

Post by Chiron » Thu Jan 16, 2020 6:57 pm

sc9182 wrote:
Tue Jan 14, 2020 1:58 pm
Chiron wrote:
Fri Jan 10, 2020 11:00 am
RJ is still at 2.625% for 5/1 with no relationship with $1100 origination.

If you are eligible, Navy Federal has excellent 3/1 rates and competitive 5/1 or 5/5 rates with no relationship. I just closed a 3/1 jumbo with no points/origination at 2.375 and they have gone down since then. I was eligible through a grandparent.

https://www.navyfederal.org/assets/rates/view-all.php
Good rates if you can get waiver on 1% origination fee !

How did you get around Navy Federal 1% origination fee !? Bumped rate up by 0.25% ?
Yes, bumped the rate and they were still lower than most.

Topic Author
softwaregeek
Posts: 262
Joined: Wed May 08, 2019 8:59 pm

Re: Relationship mortgage discounts for moving a million assets

Post by softwaregeek » Thu Jan 16, 2020 10:40 pm

Catherinehoo wrote:
Fri Nov 01, 2019 12:29 pm
Hi, This topic is very interesting.

Wells Fargo has a relationship with my employer and offers a .50 basis point discount on all posted rates. Thus, I don't have to transfer any money to get the lower rate, which is great.

I'm deciding between a 10/1 ARM at 2.5% and a 30-year fixed at 3.00%. It's a good problem to have, but I keep going back and forth. I would have the means to pay off the mortgage after 10 years if rates were to spike. It will be my first home, so statistically, I'm more likely to move sooner rather than later, but the future is always hard to predict.
This is new purchase, correct? Refi rates are usually 1/4 to 3/8 higher for some reason.

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