Relationship mortgage discounts for moving a million assets

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irrad
Posts: 7
Joined: Mon Feb 18, 2013 11:40 pm

Re: Relationship mortgage discounts for moving a million assets

Post by irrad » Mon Jun 01, 2020 1:47 pm

Econberkeley wrote:
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%.
That is a great rate. I assume you are in the Bay Area? Anyway you can PM your contact please?

irrad
Posts: 7
Joined: Mon Feb 18, 2013 11:40 pm

Re: Relationship mortgage discounts for moving a million assets

Post by irrad » Wed Jun 17, 2020 10:10 am

irrad wrote:
Wed May 27, 2020 4:43 pm
Here are a few data points. I just started my search today.

US Bank
30 year 3.375%
10/1: 2.75%
7/1: 2.625%

First Republic:
30 year: 2.95%
10/1 int only: 2.85%
7/1 int only: 2.75%

Requires 250k relationship, held in checking acct x 12 months

Citi: not competitive at all even as Citigold! Told me to just go with First Republic!
30 year: 4%
10/1: 3.75%

Chase: could only match to 3%.

Wells: said to send offer sheet to match

BofA: could not match 30 year. 10/1 and 7/1 were comparable.

Bay Area, just under $2M, LTV<60%

First Republic is looking pretty good so far!
Brief update. No other lenders could really match FRB. I'm waffling because it seems rates might drop even further over the next 1.5 years. And the fact that this isn't a no cost refi (A+B+C > $3000!).

Would you guys go for it or wait? Having trouble pulling the trigger... :confused

mervinj7
Posts: 1477
Joined: Thu Mar 27, 2014 3:10 pm

Re: Relationship mortgage discounts for moving a million assets

Post by mervinj7 » Wed Jun 17, 2020 10:24 am

irrad wrote:
Wed Jun 17, 2020 10:10 am
irrad wrote:
Wed May 27, 2020 4:43 pm
Here are a few data points. I just started my search today.

US Bank
30 year 3.375%
10/1: 2.75%
7/1: 2.625%

First Republic:
30 year: 2.95%
10/1 int only: 2.85%
7/1 int only: 2.75%

Requires 250k relationship, held in checking acct x 12 months

Citi: not competitive at all even as Citigold! Told me to just go with First Republic!
30 year: 4%
10/1: 3.75%

Chase: could only match to 3%.

Wells: said to send offer sheet to match

BofA: could not match 30 year. 10/1 and 7/1 were comparable.

Bay Area, just under $2M, LTV<60%

First Republic is looking pretty good so far!
Brief update. No other lenders could really match FRB. I'm waffling because it seems rates might drop even further over the next 1.5 years. And the fact that this isn't a no cost refi (A+B+C > $3000!).

Would you guys go for it or wait? Having trouble pulling the trigger... :confused
Assuming your could have earned 1% in a one year CD, is the opportunity cost of the $250k in FRB checking an additional $2.5k? PM me if you want my BofA contact. They matched any rate I send them (two months ago before the jumbo market got wonky) but without the checking requirement.

NeedSomeAdvice
Posts: 14
Joined: Mon Sep 24, 2012 10:32 pm

Re: Relationship mortgage discounts for moving a million assets

Post by NeedSomeAdvice » Wed Jun 17, 2020 3:05 pm

Hi all,

First, thanks for an incredible wealth of information. It's proven very helpful. Second, I'm closing on a mortgage loan through Wells Fargo in a few weeks. I've gotten a 0.25% relationship discount on my mortgage rate by moving funds over to Wells. I plan to move the funds back to an outside account as soon as possible after the close. My questions: Has anyone gotten a relationship discount through Wells and then moved funds back out within a day or two of closing? Is there a set period of time that the funds need to remain at Wells post closing?

Thanks everyone!

smby
Posts: 35
Joined: Wed May 30, 2018 12:14 pm

Re: Relationship mortgage discounts for moving a million assets

Post by smby » Thu Jun 18, 2020 2:12 pm

i have done it with Wells and no issues in moving assets outside of Wells after closing

backroad
Posts: 11
Joined: Sun May 22, 2016 11:34 am

Re: Relationship mortgage discounts for moving a million assets

Post by backroad » Tue Jun 23, 2020 10:59 pm

deleted.
Last edited by backroad on Wed Jun 24, 2020 9:18 am, edited 1 time in total.

backroad
Posts: 11
Joined: Sun May 22, 2016 11:34 am

Re: Relationship mortgage discounts for moving a million assets

Post by backroad » Wed Jun 24, 2020 9:07 am

Hello,

When dealing with the big banks and getting discounts via a relationship transfer of asset, do any of them remove the loan origination/processing fee? Is that fee a negotiable item?

Thank you.

ziggny
Posts: 27
Joined: Thu Feb 15, 2018 10:26 am

Re: Relationship mortgage discounts for moving a million assets

Post by ziggny » Wed Jun 24, 2020 10:40 am

backroad wrote:
Wed Jun 24, 2020 9:07 am
Hello,

When dealing with the big banks and getting discounts via a relationship transfer of asset, do any of them remove the loan origination/processing fee? Is that fee a negotiable item?

Thank you.
I am in contract and have yet to close, so take this with a grain of salt. Chase indicated that the appraisal fee is the only fee. I don't have this in writing yet, but my understanding is that loan origination/processing fees are waived.

mervinj7
Posts: 1477
Joined: Thu Mar 27, 2014 3:10 pm

Re: Relationship mortgage discounts for moving a million assets

Post by mervinj7 » Wed Jun 24, 2020 10:42 am

backroad wrote:
Wed Jun 24, 2020 9:07 am
Hello,

When dealing with the big banks and getting discounts via a relationship transfer of asset, do any of them remove the loan origination/processing fee? Is that fee a negotiable item?

Thank you.
BofA charged us a fairly large origination fee. However, the lender credits were enough to cover that fee along with the appraisal cost, and title insurance.

soobaerodude
Posts: 18
Joined: Thu Feb 27, 2014 4:16 am

Re: Relationship mortgage discounts for moving a million assets

Post by soobaerodude » Sat Jul 04, 2020 5:22 pm

Any recent experience of having one of these banks match a competing Loan Estimate, then apply their relationship discount on top?

Topic Author
softwaregeek
Posts: 430
Joined: Wed May 08, 2019 8:59 pm

Re: Relationship mortgage discounts for moving a million assets

Post by softwaregeek » Mon Jul 06, 2020 9:49 pm

Did that. Citi paper, BofA matched plus discount.

yelimex
Posts: 1
Joined: Wed Jul 08, 2020 10:38 am

Re: Relationship mortgage discounts for moving a million assets

Post by yelimex » Wed Jul 08, 2020 10:54 am

Any chance you can PM your contact at BofA? Thanks!!!

nepats
Posts: 348
Joined: Mon Jul 20, 2009 11:56 am

Re: Relationship mortgage discounts for moving a million assets

Post by nepats » Wed Jul 08, 2020 2:27 pm

Just learnt from contact at WF, that "only" Jumbo rates qualify for relationship discount and not conforming or high balance conforming loans.

User avatar
mrspock
Posts: 1150
Joined: Tue Feb 13, 2018 2:49 am
Location: Vulcan

Re: Relationship mortgage discounts for moving a million assets

Post by mrspock » Wed Jul 08, 2020 3:16 pm

nepats wrote:
Wed Jul 08, 2020 2:27 pm
Just learnt from contact at WF, that "only" Jumbo rates qualify for relationship discount and not conforming or high balance conforming loans.
Maybe for them, but I just closed on a conforming mortgage with Schwab/Quicken and I got the relationship discount. So this is very bank specific.

B of A was also willing to do a discount on a conforming.

oracle101
Posts: 22
Joined: Thu May 14, 2020 12:08 am

Re: Relationship mortgage discounts for moving a million assets

Post by oracle101 » Sun Jul 12, 2020 11:54 pm

FYI dealing with Wells has been terrible for me, I would use another bank if possible if rates are the same

.5% for $1M in assets is pretty standard, and they publish rates online

oracle101
Posts: 22
Joined: Thu May 14, 2020 12:08 am

Re: Relationship mortgage discounts for moving a million assets

Post by oracle101 » Sun Jul 12, 2020 11:59 pm

E90Tony wrote:
Thu May 28, 2020 12:33 pm
BoA 2.5% 30 year fixed Southern California. Requires 1m assets moved, but looks like no restrictions on having to keep assets in.
is this refi or purchase? jumbo?

anilj
Posts: 5
Joined: Mon Oct 14, 2019 1:24 pm

Re: Relationship mortgage discounts for moving a million assets

Post by anilj » Wed Jul 29, 2020 9:46 am

I am getting 2.5% for 30Y fixed with Chase but have to transfer 1M assets. Lender credit is about $3000 in the Bay Area. Loan is around 765K (just below the jumbo limit). Anyone getting anything better?

soobaerodude
Posts: 18
Joined: Thu Feb 27, 2014 4:16 am

Re: Relationship mortgage discounts for moving a million assets

Post by soobaerodude » Wed Jul 29, 2020 11:22 am

anilj wrote:
Wed Jul 29, 2020 9:46 am
I am getting 2.5% for 30Y fixed with Chase but have to transfer 1M assets. Lender credit is about $3000 in the Bay Area. Loan is around 765K (just below the jumbo limit). Anyone getting anything better?
I'm going through a similar process myself! Looking for a 761K 30 year fixed loan in the Bay Area. I started off the process by sending in a loan estimate from Loan Depot for 2.75% with $3170 in A+B+C fees, $3040 in lender credit and requesting a rate match. Here's what I'm working on

Chase
2.5% for moving 500K in assets.

Citi
2.375% for moving 500K in assets.

My hope is that they will also match the fees and lender credit too.

anilj
Posts: 5
Joined: Mon Oct 14, 2019 1:24 pm

Re: Relationship mortgage discounts for moving a million assets

Post by anilj » Wed Jul 29, 2020 11:37 am

soobaerodude wrote:
Wed Jul 29, 2020 11:22 am
I'm going through a similar process myself! Looking for a 761K 30 year fixed loan in the Bay Area. I started off the process by sending in a loan estimate from Loan Depot for 2.75% with $3170 in A+B+C fees, $3040 in lender credit and requesting a rate match. Here's what I'm working on

Chase
2.5% for moving 500K in assets.

Citi
2.375% for moving 500K in assets.

My hope is that they will also match the fees and lender credit too.
They gave me 2.875% with 750K assets moved. But offered 2.5% for 1M assets moved. I don't know how you were able to get 2.5% at only 500K! I feel like they are looking at how much money you have and then making up these thresholds on a case-by-case basis.

What does A+B+C mean exactly?

soobaerodude
Posts: 18
Joined: Thu Feb 27, 2014 4:16 am

Re: Relationship mortgage discounts for moving a million assets

Post by soobaerodude » Wed Jul 29, 2020 11:45 am

anilj wrote:
Wed Jul 29, 2020 11:37 am
soobaerodude wrote:
Wed Jul 29, 2020 11:22 am
I'm going through a similar process myself! Looking for a 761K 30 year fixed loan in the Bay Area. I started off the process by sending in a loan estimate from Loan Depot for 2.75% with $3170 in A+B+C fees, $3040 in lender credit and requesting a rate match. Here's what I'm working on

Chase
2.5% for moving 500K in assets.

Citi
2.375% for moving 500K in assets.

My hope is that they will also match the fees and lender credit too.
They gave me 2.875% with 750K assets moved. But offered 2.5% for 1M assets moved. I don't know how you were able to get 2.5% at only 500K! I feel like they are looking at how much money you have and then making up these thresholds on a case-by-case basis.

What does A+B+C mean exactly?
Since I started negotiations at 2.75% by bringing in a competing loan estimate, they will hopefully subtract their respective relationship discount:

Chase
2.75% - 0.25% for moving 500K = 2.5%

Citi
2.75% - 0.375% for moving 500K = 2.375%

If you get a formal loan estimate, the fees are broken down into sections. This is what the A B C represent:

A – Charges in this section are what the Lender charges you such as Origination; Points, App Fee etc. This is what you want to be Zero as most lenders will waive or give you credit toward this being zero.
B – Internal lender fees such as Credit Reporting Fee; Flood Certification fee. Again this is what the lender has to pay when you apply and in most cases the lender will not charge this while you are shopping and some will make you pay this upfront which is ok.
C – Title Costs – In most states (Excluding - FL, NY - CEMA cost, PA - High Title Costs, VA - Mortgage tax) the title costs are reasonable and this is what you generally pay for but you can shop this with other Title Companies and not just the one brought in by the Lender.

Basically, these are the three fees you should use to compare against other loan estimates, minus any lender credit
Last edited by soobaerodude on Wed Jul 29, 2020 11:53 am, edited 1 time in total.

ChiKid24
Posts: 240
Joined: Fri Aug 09, 2019 3:43 pm

Re: Relationship mortgage discounts for moving a million assets

Post by ChiKid24 » Wed Jul 29, 2020 11:46 am

soobaerodude wrote:
Wed Jul 29, 2020 11:22 am

I'm going through a similar process myself! Looking for a 761K 30 year fixed loan in the Bay Area. I started off the process by sending in a loan estimate from Loan Depot for 2.75% with $3170 in A+B+C fees, $3040 in lender credit and requesting a rate match. Here's what I'm working on

Chase
2.5% for moving 500K in assets.

Citi
2.375% for moving 500K in assets.

My hope is that they will also match the fees and lender credit too.
Can the $500k be in an IRA with Citi and/or Chase?

soobaerodude
Posts: 18
Joined: Thu Feb 27, 2014 4:16 am

Re: Relationship mortgage discounts for moving a million assets

Post by soobaerodude » Wed Jul 29, 2020 11:50 am

ChiKid24 wrote:
Wed Jul 29, 2020 11:46 am
soobaerodude wrote:
Wed Jul 29, 2020 11:22 am

I'm going through a similar process myself! Looking for a 761K 30 year fixed loan in the Bay Area. I started off the process by sending in a loan estimate from Loan Depot for 2.75% with $3170 in A+B+C fees, $3040 in lender credit and requesting a rate match. Here's what I'm working on

Chase
2.5% for moving 500K in assets.

Citi
2.375% for moving 500K in assets.

My hope is that they will also match the fees and lender credit too.
Can the $500k be in an IRA with Citi and/or Chase?
It can with Citi. Still trying to clarify with Chase

anilj
Posts: 5
Joined: Mon Oct 14, 2019 1:24 pm

Re: Relationship mortgage discounts for moving a million assets

Post by anilj » Wed Jul 29, 2020 11:54 am

From Chase, they said they can include IRA/rollovers in the minimum balance.

Topic Author
softwaregeek
Posts: 430
Joined: Wed May 08, 2019 8:59 pm

Re: Relationship mortgage discounts for moving a million assets

Post by softwaregeek » Wed Jul 29, 2020 2:53 pm

soobaerodude wrote:
Wed Jul 29, 2020 11:50 am
ChiKid24 wrote:
Wed Jul 29, 2020 11:46 am
soobaerodude wrote:
Wed Jul 29, 2020 11:22 am

I'm going through a similar process myself! Looking for a 761K 30 year fixed loan in the Bay Area. I started off the process by sending in a loan estimate from Loan Depot for 2.75% with $3170 in A+B+C fees, $3040 in lender credit and requesting a rate match. Here's what I'm working on

Chase
2.5% for moving 500K in assets.

Citi
2.375% for moving 500K in assets.

My hope is that they will also match the fees and lender credit too.
Can the $500k be in an IRA with Citi and/or Chase?
It can with Citi. Still trying to clarify with Chase
Citi offering a $1500 incentive to move large amounts of cash to their savings account for a while. Might be worthwhile to double up if you have a liquid cash position.

60B4E24B
Posts: 40
Joined: Tue Jul 16, 2019 8:55 pm

Re: Relationship mortgage discounts for moving a million assets

Post by 60B4E24B » Wed Jul 29, 2020 7:49 pm

I was quoted the following today for new purchase jumbo ($1.5M+) in NYC from Wells Fargo:

30y: 3.25%
10/1: 2.625%
7/1: 2.5%

Those are pre-discount, no points. You get a 0.125% reduction for each $250k you bring over, up to 0.5%/$1M. The best part is that your downpayment can be included in that. In fact, you only need to have the money in the linked accounts on the day you price the loan. It doesn't need to sit until closing.

totallynotsure
Posts: 104
Joined: Wed Feb 26, 2020 10:35 am

Re: Relationship mortgage discounts for moving a million assets

Post by totallynotsure » Wed Jul 29, 2020 8:12 pm

I just read someone in NY got a jumbo loan at 3% with 15% down and no PMI via CITI.

Does this sound at all plausible?

jarjarM
Posts: 123
Joined: Mon Jul 16, 2018 1:21 pm

Re: Relationship mortgage discounts for moving a million assets

Post by jarjarM » Wed Jul 29, 2020 9:41 pm

totallynotsure wrote:
Wed Jul 29, 2020 8:12 pm
I just read someone in NY got a jumbo loan at 3% with 15% down and no PMI via CITI.

Does this sound at all plausible?
Plausible if one has large asset in CITI, i think you can get better than 0.75% discount if you have 2-5mil in Citi (at least that was the case ~4 months ago).

Topic Author
softwaregeek
Posts: 430
Joined: Wed May 08, 2019 8:59 pm

Re: Relationship mortgage discounts for moving a million assets

Post by softwaregeek » Wed Jul 29, 2020 10:49 pm

jarjarM wrote:
Wed Jul 29, 2020 9:41 pm
totallynotsure wrote:
Wed Jul 29, 2020 8:12 pm
I just read someone in NY got a jumbo loan at 3% with 15% down and no PMI via CITI.

Does this sound at all plausible?
Plausible if one has large asset in CITI, i think you can get better than 0.75% discount if you have 2-5mil in Citi (at least that was the case ~4 months ago).
Very plausible. The guy above, for example, lists 3.25% on a Wells Jumbo. Subtract half a point on it gets to 2.75, if you move a million to Wellstrade. That gives you an extra quarter point to play with for the high Loan-to-value.

ras4250
Posts: 142
Joined: Tue Mar 04, 2014 1:25 pm

Re: Relationship mortgage discounts for moving a million assets

Post by ras4250 » Wed Jul 29, 2020 10:51 pm

totallynotsure wrote:
Wed Jul 29, 2020 8:12 pm
I just read someone in NY got a jumbo loan at 3% with 15% down and no PMI via CITI.

Does this sound at all plausible?
Citi Private Banking allows jumbo, 10.01% down with no PMI :shock: :D

Topic Author
softwaregeek
Posts: 430
Joined: Wed May 08, 2019 8:59 pm

Re: Relationship mortgage discounts for moving a million assets

Post by softwaregeek » Wed Jul 29, 2020 11:03 pm

ras4250 wrote:
Wed Jul 29, 2020 10:51 pm
totallynotsure wrote:
Wed Jul 29, 2020 8:12 pm
I just read someone in NY got a jumbo loan at 3% with 15% down and no PMI via CITI.

Does this sound at all plausible?
Citi Private Banking allows jumbo, 10.01% down with no PMI :shock: :D
I am told that sort of lending is one of the key benefits for many of the big private banks. As well as the ability to 'gift' those loan rates to your children, and the ability to utilize additional collateral in your account towards the loan. No doubt a great benefit, but they are probably paying 10x the benefit in AUM fees.

comanche05
Posts: 1
Joined: Wed Jul 29, 2020 11:47 pm

Re: Relationship mortgage discounts for moving a million assets

Post by comanche05 » Wed Jul 29, 2020 11:59 pm

Shopping for a large jumbo loan ($2M+, 20% down) in SoCal; here's what I've been getting:

US Bank
30 year 3.375%, acknowledged they weren't very competitive

First Republic:
30 year: 2.95%
No balance in checking required for relationship rate on purchase loans (only for refi); does require paychecks to go into checking account and mortgage payment to be made out of FR account

Citi:
30 year: 3.375%
.250 discount for moving $200k, does not include down payment. Willing to match others before applying relationship discount

Wells:
30 year: 3.125%
.125 discount for every $250k, includes down payment. Willing to match rates before applying relationship discount

BofA:
30 year: 3.375%, no longer matching

soobaerodude
Posts: 18
Joined: Thu Feb 27, 2014 4:16 am

Re: Relationship mortgage discounts for moving a million assets

Post by soobaerodude » Thu Jul 30, 2020 5:50 pm

soobaerodude wrote:
Wed Jul 29, 2020 11:45 am
Since I started negotiations at 2.75% by bringing in a competing loan estimate, they will hopefully subtract their respective relationship discount:

Chase
2.75% - 0.25% for moving 500K = 2.5%

Citi
2.75% - 0.375% for moving 500K = 2.375%

If you get a formal loan estimate, the fees are broken down into sections. This is what the A B C represent:

A – Charges in this section are what the Lender charges you such as Origination; Points, App Fee etc. This is what you want to be Zero as most lenders will waive or give you credit toward this being zero.
B – Internal lender fees such as Credit Reporting Fee; Flood Certification fee. Again this is what the lender has to pay when you apply and in most cases the lender will not charge this while you are shopping and some will make you pay this upfront which is ok.
C – Title Costs – In most states (Excluding - FL, NY - CEMA cost, PA - High Title Costs, VA - Mortgage tax) the title costs are reasonable and this is what you generally pay for but you can shop this with other Title Companies and not just the one brought in by the Lender.

Basically, these are the three fees you should use to compare against other loan estimates, minus any lender credit
Well, Citi could not match the 2.75% saying it would cost them too much on the backend :?

Still waiting on Chase

ras4250
Posts: 142
Joined: Tue Mar 04, 2014 1:25 pm

Re: Relationship mortgage discounts for moving a million assets

Post by ras4250 » Fri Jul 31, 2020 9:38 pm

softwaregeek wrote:
Wed Jul 29, 2020 11:03 pm
ras4250 wrote:
Wed Jul 29, 2020 10:51 pm
totallynotsure wrote:
Wed Jul 29, 2020 8:12 pm
I just read someone in NY got a jumbo loan at 3% with 15% down and no PMI via CITI.

Does this sound at all plausible?
Citi Private Banking allows jumbo, 10.01% down with no PMI :shock: :D
I am told that sort of lending is one of the key benefits for many of the big private banks. As well as the ability to 'gift' those loan rates to your children, and the ability to utilize additional collateral in your account towards the loan. No doubt a great benefit, but they are probably paying 10x the benefit in AUM fees.
Sometimes you can get lucky, and get access to the Private Bank, without the minimums or AUM fees.
https://www.privatebank.citibank.com/ho ... firms.html

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