Relationship mortgage discounts for moving a million assets

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Savingscaptain
Posts: 66
Joined: Sun Oct 11, 2020 4:31 am

Re: Relationship mortgage discounts for moving a million assets

Post by Savingscaptain »

FWIW, rates tanked today on Jumbos. Buddy just relocked (not float down) for 1.625 after relationship for a 10/1 jumbo with WF. So annoyed that I already closed.
Tingting1013
Posts: 464
Joined: Mon Aug 24, 2020 5:44 pm

Re: Relationship mortgage discounts for moving a million assets

Post by Tingting1013 »

Savingscaptain wrote: Wed Nov 18, 2020 3:00 am FWIW, rates tanked today on Jumbos. Buddy just relocked (not float down) for 1.625 after relationship for a 10/1 jumbo with WF. So annoyed that I already closed.
Was this for a purchase or refi?
jawi
Posts: 6
Joined: Thu Nov 05, 2020 12:04 pm

Re: Relationship mortgage discounts for moving a million assets

Post by jawi »

Update on my efforts and request for assistance.

WF: 1.2mm refi in GA. Moving $1mm gets me 50bps off their quoted rates. With the 50bps reduction this looks to be 2.875% on a 30yr and 2.625% on a 10/1 ARM. Thoughts on competitiveness? Ideally, I'd like to get one of the below to quote me and then have some competition amongst the parties.
Citi and BBVA: Striking out on finding anything for GA. Anyone have a referral?
JPMorgan / Chase: I placed a call into JPMorgan Private bank and understand now they require $5mm in assets to work with me. Gentleman took my info and is passing along to a rep at Chase. Likewise to the bullet above any recommended contacts at Chase?

Lastly - am I missing any banks to consider here?
jawi
Posts: 6
Joined: Thu Nov 05, 2020 12:04 pm

Re: Relationship mortgage discounts for moving a million assets

Post by jawi »

Savingscaptain wrote: Wed Nov 18, 2020 3:00 am FWIW, rates tanked today on Jumbos. Buddy just relocked (not float down) for 1.625 after relationship for a 10/1 jumbo with WF. So annoyed that I already closed.
Were there any points at play here? That is far from what I am getting quoted from WF just yesterday.
muffins14
Posts: 380
Joined: Wed Oct 26, 2016 4:14 am

Re: Relationship mortgage discounts for moving a million assets

Post by muffins14 »

Savingscaptain wrote: Wed Nov 18, 2020 2:58 am
sgboggle wrote: Tue Nov 17, 2020 5:43 pm
8foot7 wrote: Tue Nov 17, 2020 5:29 pm If you’re going to move a million bucks somewhere, having had or not having had a credit card with them won’t make a bit of difference. The million in new money you’re bringing will buy you the relationship
I interpreted his question more like: To start the conversation with the bank about getting these discounts, do I need to already have an account at the bank?

I'm guessing it doesn't matter, but not sure if that's true for all banks.
It doesn't martter, they are happy to have your business in any way possible.
Thanks to al 3 of you for the responses
Savingscaptain
Posts: 66
Joined: Sun Oct 11, 2020 4:31 am

Re: Relationship mortgage discounts for moving a million assets

Post by Savingscaptain »

Tingting1013 wrote: Wed Nov 18, 2020 6:28 am
Savingscaptain wrote: Wed Nov 18, 2020 3:00 am FWIW, rates tanked today on Jumbos. Buddy just relocked (not float down) for 1.625 after relationship for a 10/1 jumbo with WF. So annoyed that I already closed.
Was this for a purchase or refi?
Purchase
Savingscaptain
Posts: 66
Joined: Sun Oct 11, 2020 4:31 am

Re: Relationship mortgage discounts for moving a million assets

Post by Savingscaptain »

jawi wrote: Wed Nov 18, 2020 9:02 am
Savingscaptain wrote: Wed Nov 18, 2020 3:00 am FWIW, rates tanked today on Jumbos. Buddy just relocked (not float down) for 1.625 after relationship for a 10/1 jumbo with WF. So annoyed that I already closed.
Were there any points at play here? That is far from what I am getting quoted from WF just yesterday.
No points. Mine (and others here I believe) got 1.75 at 0 points. He got a slight improvement yesterday since he hadn't closed yet

Base rate for me was 2.250 with 0.5 relationship discount if came to 1.75. they also waived all lender fees in the form of a credit of 2300ish $$
Last edited by Savingscaptain on Wed Nov 18, 2020 12:46 pm, edited 1 time in total.
Savingscaptain
Posts: 66
Joined: Sun Oct 11, 2020 4:31 am

Re: Relationship mortgage discounts for moving a million assets

Post by Savingscaptain »

jawi wrote: Wed Nov 18, 2020 9:00 am Update on my efforts and request for assistance.

WF: 1.2mm refi in GA. Moving $1mm gets me 50bps off their quoted rates. With the 50bps reduction this looks to be 2.875% on a 30yr and 2.625% on a 10/1 ARM. Thoughts on competitiveness? Ideally, I'd like to get one of the below to quote me and then have some competition amongst the parties.
Citi and BBVA: Striking out on finding anything for GA. Anyone have a referral?
JPMorgan / Chase: I placed a call into JPMorgan Private bank and understand now they require $5mm in assets to work with me. Gentleman took my info and is passing along to a rep at Chase. Likewise to the bullet above any recommended contacts at Chase?

Lastly - am I missing any banks to consider here?
If you really want to spend time for a rate. Get the WF quote after moving assets (loan estimate) send to Citi and then move assets there and take their reduction. It takes a lot of effort and time, but you might get a better rate. Purchase vs refi should be no different ideally, as they are taking on the same liability. this is just the banks making crazy money
Count of Notre Dame
Posts: 229
Joined: Fri Oct 11, 2013 1:08 pm

Re: Relationship mortgage discounts for moving a million assets

Post by Count of Notre Dame »

The recent quote I received from WF for a $1.5M jumbo loan including a 0.5% discount for $1M AUM:

30-year fixed 2.75%
7/1 ARM 2.375%
10/1 ARM 2.5%
jawi
Posts: 6
Joined: Thu Nov 05, 2020 12:04 pm

Re: Relationship mortgage discounts for moving a million assets

Post by jawi »

Count of Notre Dame wrote: Wed Nov 18, 2020 1:07 pm The recent quote I received from WF for a $1.5M jumbo loan including a 0.5% discount for $1M AUM:

30-year fixed 2.75%
7/1 ARM 2.375%
10/1 ARM 2.5%
Yes this is close to what I am getting as well. I'd really love to get to the 10/1 ARM @ 1.75% that I am seeing above.
Count of Notre Dame
Posts: 229
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Re: Relationship mortgage discounts for moving a million assets

Post by Count of Notre Dame »

jawi wrote: Wed Nov 18, 2020 2:12 pm
Count of Notre Dame wrote: Wed Nov 18, 2020 1:07 pm The recent quote I received from WF for a $1.5M jumbo loan including a 0.5% discount for $1M AUM:

30-year fixed 2.75%
7/1 ARM 2.375%
10/1 ARM 2.5%
Yes this is close to what I am getting as well. I'd really love to get to the 10/1 ARM @ 1.75% that I am seeing above.
Wouldn't we all! But also at some point if you have $1-3M in assets and you're just looking to arbitrage borrowing rate vs. investing return I would think just using some portfolio margin (~1% rate at Interative Brokers) would get that job done with minimal risk. Sure the debt is callable but with assets that high and low amounts of leverage it's effectively the same risk as a mortgage but with a much better interest rate. Plus the margin interest is tax deductible and could shield your portfolio's dividends from taxes.

I don't have $1M in a taxable account that I can move and my existing 10/1 ARM @ 2.75% with First Republic is probably as good as it's going to get for me?
sgboggle
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Joined: Sat Jan 21, 2012 6:09 pm

Re: Relationship mortgage discounts for moving a million assets

Post by sgboggle »

Savingscaptain wrote: Wed Nov 18, 2020 12:45 pm If you really want to spend time for a rate. Get the WF quote after moving assets (loan estimate) send to Citi and then move assets there and take their reduction.
Will WF/Citi (or any other bank) give you a Loan Estimate showing the relationship discount before you transfer assets?
Or do you mean actually transfer the assets to the first bank, get a loan estimate from them, and then transfer to the second bank?
(In that case, do you need to wait a few weeks between transfers, to get the cost basis info transferred?)

(Chase won't give me an official Loan Estimate showing the discount until after I actually do the transfer (and even then I'm not sure if they'll give me a new Loan Estimate or just the Closing Disclosure will show the discount). It's easy to get an informal quote showing the discounted rate, but WF/Citi won't match that; they want to see an official Loan Estimate.)
Tingting1013
Posts: 464
Joined: Mon Aug 24, 2020 5:44 pm

Re: Relationship mortgage discounts for moving a million assets

Post by Tingting1013 »

Just got a fresh quote from WF for IO ARM refi in Bay Area:

5/1: 2.5%
7/1: 2.625%
10/1: 2.75%

Reflects discount for $1M assets transferred
presto987
Posts: 217
Joined: Sun Aug 30, 2020 10:58 pm

Re: Relationship mortgage discounts for moving a million assets

Post by presto987 »

For jumbo loan refis up to $2m in CA, Owning is advertising 2.75% for a 30-year fixed with no closing costs. This rate is probably subject to some LTV requirement, so YMMV.

Not related to relationship discounts, but just posting in this thread since most of you are discussing jumbos.
Savingscaptain
Posts: 66
Joined: Sun Oct 11, 2020 4:31 am

Re: Relationship mortgage discounts for moving a million assets

Post by Savingscaptain »

sgboggle wrote: Wed Nov 18, 2020 3:35 pm
Savingscaptain wrote: Wed Nov 18, 2020 12:45 pm If you really want to spend time for a rate. Get the WF quote after moving assets (loan estimate) send to Citi and then move assets there and take their reduction.
Will WF/Citi (or any other bank) give you a Loan Estimate showing the relationship discount before you transfer assets?
Or do you mean actually transfer the assets to the first bank, get a loan estimate from them, and then transfer to the second bank?
(In that case, do you need to wait a few weeks between transfers, to get the cost basis info transferred?)

(Chase won't give me an official Loan Estimate showing the discount until after I actually do the transfer (and even then I'm not sure if they'll give me a new Loan Estimate or just the Closing Disclosure will show the discount). It's easy to get an informal quote showing the discounted rate, but WF/Citi won't match that; they want to see an official Loan Estimate.)
I mean the latter. You need to transfer assets. If they are all in your name transfer is super easy via ACATS and it completes in 5 business days by policy

In my case the I just sent an email from one LO to another before even a credit pull. Though I had to try 3-4 officers before one agreed to really talk without a full appliancation
TPIR
Posts: 37
Joined: Fri Nov 01, 2019 6:12 pm

Re: Relationship mortgage discounts for moving a million assets

Post by TPIR »

Count of Notre Dame wrote: Wed Nov 18, 2020 2:57 pm
jawi wrote: Wed Nov 18, 2020 2:12 pm
Count of Notre Dame wrote: Wed Nov 18, 2020 1:07 pm The recent quote I received from WF for a $1.5M jumbo loan including a 0.5% discount for $1M AUM:

30-year fixed 2.75%
7/1 ARM 2.375%
10/1 ARM 2.5%
Yes this is close to what I am getting as well. I'd really love to get to the 10/1 ARM @ 1.75% that I am seeing above.
Wouldn't we all! But also at some point if you have $1-3M in assets and you're just looking to arbitrage borrowing rate vs. investing return I would think just using some portfolio margin (~1% rate at Interative Brokers) would get that job done with minimal risk. Sure the debt is callable but with assets that high and low amounts of leverage it's effectively the same risk as a mortgage but with a much better interest rate. Plus the margin interest is tax deductible and could shield your portfolio's dividends from taxes.

I don't have $1M in a taxable account that I can move and my existing 10/1 ARM @ 2.75% with First Republic is probably as good as it's going to get for me?
Correct - optimal in that strategy would be take mortgage up to deductible limit. Then portfolio margin for rest desired.

But would be ideal to have an alternative to IBKR rate wise for diversification - split the margin across 2 or more brokers. Any out there? I guess you could do your own option spread to achieve it if you’re comfortable.
boston85
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Re: Relationship mortgage discounts for moving a million assets

Post by boston85 »

This seems like an outlier based on what I have read here. But I called WF yesterday to inquire about refinancing my Jumbo 10/1 at 2.625 with a balance just over $1M. They told me that due to current conditions with COVID, they are no longer offering jumbo refinances unless you had a pre-existing relationship with WF as of 6/30 OR if you are able to move $1M in assets to them. I haven't seen that posted anywhere else here, so wondering if they just didn't want my business. This was just a call to their random mortgage number listed on their website.
TPIR
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Joined: Fri Nov 01, 2019 6:12 pm

Re: Relationship mortgage discounts for moving a million assets

Post by TPIR »

boston85 wrote: Thu Nov 19, 2020 9:20 am This seems like an outlier based on what I have read here. But I called WF yesterday to inquire about refinancing my Jumbo 10/1 at 2.625 with a balance just over $1M. They told me that due to current conditions with COVID, they are no longer offering jumbo refinances unless you had a pre-existing relationship with WF as of 6/30 OR if you are able to move $1M in assets to them. I haven't seen that posted anywhere else here, so wondering if they just didn't want my business. This was just a call to their random mortgage number listed on their website.
Ive seen that policy in the media.

Chase’s head of risk last week said they are loosening COVID overlays on the back of home price appreciation.
oracle101
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Re: Relationship mortgage discounts for moving a million assets

Post by oracle101 »

Savingscaptain wrote: Sun Oct 25, 2020 12:39 pm
oracle101 wrote: Sat Oct 24, 2020 3:58 pm Does anyone have suggestions for jumbo loan lenders that are NOT wells fargo. I used them last time and want to avoid banking with them because they are horrible

Will First Republic meet Wells Fargo rate with $1M relationship discount?
I was in the same boat as you, and hoping chase or another lender could beat, for a new purchase, no one can come close.
Buying another home. Citi was able to meet/beat Wells Fargo

Citi - 2% 10/1 ARM jumbo loan 80% LTV.
Wells probably could match but I hate dealing with them. They are most conservative with underwriting, and the slowest, but usually cheapest.
Chase - unwilling to underwrite my situation given tech RSU income and rental income not being seasoned
First Republic - not competitive at all. Low LTVs, forced to use 1% AUM fee investment account, keep cash in checkings. I do not get the hype about this bank. They were. fast in getting back to me

Union Bank also doing quick turnaround for me at 2.375%, but more flexibility in bringing $$ over which helps with underwriting.

The way I see it, you have your big 3, and it will come down to Wells and one of Citi/Chase. Then pick one smaller bank in case you want more specific product or faster turn around time/fast close. All big banks are 14 days + just to get to first stage of underwriting
presto987
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Re: Relationship mortgage discounts for moving a million assets

Post by presto987 »

Is Citi’s 2% rate with or without a relationship discount?
oracle101
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Joined: Thu May 14, 2020 12:08 am

Re: Relationship mortgage discounts for moving a million assets

Post by oracle101 »

presto987 wrote: Sat Nov 21, 2020 6:14 pm Is Citi’s 2% rate with or without a relationship discount?
1M relationship discount (.5% off)
Savingscaptain
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Re: Relationship mortgage discounts for moving a million assets

Post by Savingscaptain »

oracle101 wrote: Sat Nov 21, 2020 6:27 pm
presto987 wrote: Sat Nov 21, 2020 6:14 pm Is Citi’s 2% rate with or without a relationship discount?
1M relationship discount (.5% off)
Oh weird that WF didn't beat that like crazy. I got a 10/1 at 1.75 and I was getting pretty good until my buddy got 1.625 and all of a sudden I wasn't the cool kid anymore
Topic Author
softwaregeek
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Re: Relationship mortgage discounts for moving a million assets

Post by softwaregeek »

Hoping for a 30 yr fixed refi at 2.5 but it's looking less likely.

Called Chase and no luck, they have the lowest published rates.
spacecadet610
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Re: Relationship mortgage discounts for moving a million assets

Post by spacecadet610 »

softwaregeek wrote: Sun Nov 22, 2020 4:47 pm Hoping for a 30 yr fixed refi at 2.5 but it's looking less likely.

Called Chase and no luck, they have the lowest published rates.
What rates are they quoting you?

I am in midst of refinance with Chase. They quoted me 30% 30 year fixed jumbo which would be 2.5% after relationship discount.

I just transferred my assets into youinvest.
mervinj7
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Re: Relationship mortgage discounts for moving a million assets

Post by mervinj7 »

spacecadet610 wrote: Sun Nov 22, 2020 5:12 pm
softwaregeek wrote: Sun Nov 22, 2020 4:47 pm Hoping for a 30 yr fixed refi at 2.5 but it's looking less likely.

Called Chase and no luck, they have the lowest published rates.
What rates are they quoting you?

I am in midst of refinance with Chase. They quoted me 30% 30 year fixed jumbo which would be 2.5% after relationship discount.

I just transferred my assets into youinvest.
What was the rate pre discount?
SFMarc
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Joined: Mon Nov 02, 2020 10:41 pm

Re: Relationship mortgage discounts for moving a million assets

Post by SFMarc »

spacecadet610 wrote: Sun Nov 22, 2020 5:12 pm I am in midst of refinance with Chase. They quoted me 30% 30 year fixed jumbo which would be 2.5% after relationship discount.
How much was the relationship discount?
spacecadet610
Posts: 58
Joined: Sun Aug 26, 2012 1:41 pm

Re: Relationship mortgage discounts for moving a million assets

Post by spacecadet610 »

mervinj7 wrote: Sun Nov 22, 2020 6:23 pm
spacecadet610 wrote: Sun Nov 22, 2020 5:12 pm
softwaregeek wrote: Sun Nov 22, 2020 4:47 pm Hoping for a 30 yr fixed refi at 2.5 but it's looking less likely.

Called Chase and no luck, they have the lowest published rates.
What rates are they quoting you?

I am in midst of refinance with Chase. They quoted me 30% 30 year fixed jumbo which would be 2.5% after relationship discount.

I just transferred my assets into youinvest.
What was the rate pre discount?
I meant to write 3% prediscount rate, with .5% discount with $1 million asset transfer. For a small fee she said I can reduce the rate to 2.3875.
oracle101
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Joined: Thu May 14, 2020 12:08 am

Re: Relationship mortgage discounts for moving a million assets

Post by oracle101 »

Savingscaptain wrote: Sun Nov 22, 2020 5:11 am
oracle101 wrote: Sat Nov 21, 2020 6:27 pm
presto987 wrote: Sat Nov 21, 2020 6:14 pm Is Citi’s 2% rate with or without a relationship discount?
1M relationship discount (.5% off)
Oh weird that WF didn't beat that like crazy. I got a 10/1 at 1.75 and I was getting pretty good until my buddy got 1.625 and all of a sudden I wasn't the cool kid anymore
Really, when was this? I don't even see 10/1 on wells site anymore, just 10/6.

Usually the public site from what I saw, was accurate and you just applied relationship discount. So last week I saw 2.375%, which would match your 1.6255, but the public site shows points. I guess you can get that waived. Like I said, Wells should usually be the cheapest you just need to deal with them and they are a PITA. If you are vanilla W2 than that shouldn't matter though.

Union bank does offer 10/1 ARM where you can lock the rate at any time, as in year 2 you just lock the current rate. Kinda cool. Also they have 40 year amortization where after 10 year period you can convert to 30 year amort. Guess Japanese banks are used to low yields.
Savingscaptain
Posts: 66
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Re: Relationship mortgage discounts for moving a million assets

Post by Savingscaptain »

oracle101 wrote: Mon Nov 23, 2020 6:10 pm
Savingscaptain wrote: Sun Nov 22, 2020 5:11 am
oracle101 wrote: Sat Nov 21, 2020 6:27 pm
presto987 wrote: Sat Nov 21, 2020 6:14 pm Is Citi’s 2% rate with or without a relationship discount?
1M relationship discount (.5% off)
Oh weird that WF didn't beat that like crazy. I got a 10/1 at 1.75 and I was getting pretty good until my buddy got 1.625 and all of a sudden I wasn't the cool kid anymore
Really, when was this? I don't even see 10/1 on wells site anymore, just 10/6.

Usually the public site from what I saw, was accurate and you just applied relationship discount. So last week I saw 2.375%, which would match your 1.6255, but the public site shows points. I guess you can get that waived. Like I said, Wells should usually be the cheapest you just need to deal with them and they are a PITA. If you are vanilla W2 than that shouldn't matter though.

Union bank does offer 10/1 ARM where you can lock the rate at any time, as in year 2 you just lock the current rate. Kinda cool. Also they have 40 year amortization where after 10 year period you can convert to 30 year amort. Guess Japanese banks are used to low yields.
Oh damn they moved to a 10/6. Shoot! That would have been nice. Oh well can't get everything I guess. All the pricing is the same. They will waive all points.
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