Relationship mortgage discounts for moving a million assets

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bwilligy
Posts: 4
Joined: Sun Jun 27, 2021 3:32 am

Re: Relationship mortgage discounts for moving a million assets

Post by bwilligy »

Just got a competitive jumbo loan quote from my mortgage broker for Goldman Sachs which had relationship discounts kicking in at $250k and $500k. Has anyone had experience with Goldman Sachs? Curious about:
  • The experience with them on the mortgage side...I don't think I'd heard of them doing retail mortgages before.
  • The experience moving over assets to them and their brokerage platform. I'd have to move a bunch of my existing taxable and retirement accounts from Vanguard and Fidelity to qualify, so curious what the experience of their platform is like.
Count of Notre Dame
Posts: 346
Joined: Fri Oct 11, 2013 1:08 pm

Re: Relationship mortgage discounts for moving a million assets

Post by Count of Notre Dame »

xerxes101 wrote: Fri Aug 13, 2021 7:44 pm B of A quoted me jumbo 10/6m interest only ARM at 2.375% with 25% down
Schwab comes in at 2.625% for the same type of loan
Is anyone getting a better rate for an interest onlY 10/6m ARM?
Thx
Did BofA offer you AUM discount pricing as well? How much off the rate for $250k in assets?
rookie_investor1
Posts: 89
Joined: Mon Aug 16, 2021 8:01 pm

Re: Relationship mortgage discounts for moving a million assets

Post by rookie_investor1 »

bogey44 wrote: Thu Sep 02, 2021 4:20 pm Closed with WF recently on a purchase at 2.125% after 0.5% discount and 20% down in SoCal. Was nervous because I’ve heard some not so great things about WF, but the process was pretty smooth and my loan officer was awesome. I did get fully underwritten before our offer was accepted, so that helped.
so you got underwriter approval before making an offer ?
what I was told is, underwriter approval expires when your credit check expires (4months), so does it really help with underwriter approval especially when you have no idea if or when your offer will really get accepted.
bogey44
Posts: 4
Joined: Thu Jul 22, 2021 10:43 pm

Re: Relationship mortgage discounts for moving a million assets

Post by bogey44 »

rookie_investor1 wrote: Mon Sep 13, 2021 5:40 pm
bogey44 wrote: Thu Sep 02, 2021 4:20 pm Closed with WF recently on a purchase at 2.125% after 0.5% discount and 20% down in SoCal. Was nervous because I’ve heard some not so great things about WF, but the process was pretty smooth and my loan officer was awesome. I did get fully underwritten before our offer was accepted, so that helped.
so you got underwriter approval before making an offer ?
what I was told is, underwriter approval expires when your credit check expires (4months), so does it really help with underwriter approval especially when you have no idea if or when your offer will really get accepted.
Yep we got the underwritten pre-approval not too long before we made the offer. I didn’t ask how long it was good for, but I’m sure it does expire at some point. After our offer was accepted, we got the appraisal and commitment letter from WF within a week. The only thing that took a bit longer was transferring over the assets and having them verified/approved to qualify for the mortgage discount. In their disclosures for the discount it mentions the transfer needs to be done at least 10 business days before your closing date in order to verify the assets. So once your offer is accepted, I recommend getting started on the asset transfer right away.
rookie_investor1
Posts: 89
Joined: Mon Aug 16, 2021 8:01 pm

Re: Relationship mortgage discounts for moving a million assets

Post by rookie_investor1 »

bogey44 wrote: Tue Sep 14, 2021 4:57 pm
rookie_investor1 wrote: Mon Sep 13, 2021 5:40 pm
bogey44 wrote: Thu Sep 02, 2021 4:20 pm Closed with WF recently on a purchase at 2.125% after 0.5% discount and 20% down in SoCal. Was nervous because I’ve heard some not so great things about WF, but the process was pretty smooth and my loan officer was awesome. I did get fully underwritten before our offer was accepted, so that helped.
so you got underwriter approval before making an offer ?
what I was told is, underwriter approval expires when your credit check expires (4months), so does it really help with underwriter approval especially when you have no idea if or when your offer will really get accepted.
Yep we got the underwritten pre-approval not too long before we made the offer. I didn’t ask how long it was good for, but I’m sure it does expire at some point. After our offer was accepted, we got the appraisal and commitment letter from WF within a week. The only thing that took a bit longer was transferring over the assets and having them verified/approved to qualify for the mortgage discount. In their disclosures for the discount it mentions the transfer needs to be done at least 10 business days before your closing date in order to verify the assets. So once your offer is accepted, I recommend getting started on the asset transfer right away.
Thanks. Do you plan to move the funds out of WF ? Their promotion says nothing about keeping the funds after the closing
Also do you mind sharing closing costs? I got an estimate with initial costs of $13K (not including discounted rate), so I am worried we are essentially buying points in a way
bogey44
Posts: 4
Joined: Thu Jul 22, 2021 10:43 pm

Re: Relationship mortgage discounts for moving a million assets

Post by bogey44 »

rookie_investor1 wrote: Wed Sep 15, 2021 9:27 am
bogey44 wrote: Tue Sep 14, 2021 4:57 pm
rookie_investor1 wrote: Mon Sep 13, 2021 5:40 pm
bogey44 wrote: Thu Sep 02, 2021 4:20 pm Closed with WF recently on a purchase at 2.125% after 0.5% discount and 20% down in SoCal. Was nervous because I’ve heard some not so great things about WF, but the process was pretty smooth and my loan officer was awesome. I did get fully underwritten before our offer was accepted, so that helped.
so you got underwriter approval before making an offer ?
what I was told is, underwriter approval expires when your credit check expires (4months), so does it really help with underwriter approval especially when you have no idea if or when your offer will really get accepted.
Yep we got the underwritten pre-approval not too long before we made the offer. I didn’t ask how long it was good for, but I’m sure it does expire at some point. After our offer was accepted, we got the appraisal and commitment letter from WF within a week. The only thing that took a bit longer was transferring over the assets and having them verified/approved to qualify for the mortgage discount. In their disclosures for the discount it mentions the transfer needs to be done at least 10 business days before your closing date in order to verify the assets. So once your offer is accepted, I recommend getting started on the asset transfer right away.
Thanks. Do you plan to move the funds out of WF ? Their promotion says nothing about keeping the funds after the closing
Also do you mind sharing closing costs? I got an estimate with initial costs of $13K (not including discounted rate), so I am worried we are essentially buying points in a way
Yeah I’m moving the assets out as I’m not a fan of WF’s trading platform. After you’ve closed, your rate is set. Also doesn’t hurt that some brokerages will give you a decent bonus for moving your assets there.

As for the closing costs, our initial loan estimate was around your number. The actual closing costs ended up being around $4k lower. The main difference is their estimate for the lender’s title policy was around twice what the actual cost was. And their loan estimate assumed that I was paying for the owner’s title policy, but I believe in SoCal the seller usually pays for that. Those two items accounted for roughly $4k difference between the estimate vs actual. In our contract, the seller chose the escrow and title companies, so the main variables as far as closing costs go between lenders would have been the A + B sections (origination charges and appraisal). It was around $1600 for origination/processing and $700 for appraisal.
rookie_investor1
Posts: 89
Joined: Mon Aug 16, 2021 8:01 pm

Re: Relationship mortgage discounts for moving a million assets

Post by rookie_investor1 »

bogey44 wrote: Wed Sep 15, 2021 12:10 pm
rookie_investor1 wrote: Wed Sep 15, 2021 9:27 am
bogey44 wrote: Tue Sep 14, 2021 4:57 pm
rookie_investor1 wrote: Mon Sep 13, 2021 5:40 pm
bogey44 wrote: Thu Sep 02, 2021 4:20 pm Closed with WF recently on a purchase at 2.125% after 0.5% discount and 20% down in SoCal. Was nervous because I’ve heard some not so great things about WF, but the process was pretty smooth and my loan officer was awesome. I did get fully underwritten before our offer was accepted, so that helped.
so you got underwriter approval before making an offer ?
what I was told is, underwriter approval expires when your credit check expires (4months), so does it really help with underwriter approval especially when you have no idea if or when your offer will really get accepted.
Yep we got the underwritten pre-approval not too long before we made the offer. I didn’t ask how long it was good for, but I’m sure it does expire at some point. After our offer was accepted, we got the appraisal and commitment letter from WF within a week. The only thing that took a bit longer was transferring over the assets and having them verified/approved to qualify for the mortgage discount. In their disclosures for the discount it mentions the transfer needs to be done at least 10 business days before your closing date in order to verify the assets. So once your offer is accepted, I recommend getting started on the asset transfer right away.
Thanks. Do you plan to move the funds out of WF ? Their promotion says nothing about keeping the funds after the closing
Also do you mind sharing closing costs? I got an estimate with initial costs of $13K (not including discounted rate), so I am worried we are essentially buying points in a way
Yeah I’m moving the assets out as I’m not a fan of WF’s trading platform. After you’ve closed, your rate is set. Also doesn’t hurt that some brokerages will give you a decent bonus for moving your assets there.

As for the closing costs, our initial loan estimate was around your number. The actual closing costs ended up being around $4k lower. The main difference is their estimate for the lender’s title policy was around twice what the actual cost was. And their loan estimate assumed that I was paying for the owner’s title policy, but I believe in SoCal the seller usually pays for that. Those two items accounted for roughly $4k difference between the estimate vs actual. In our contract, the seller chose the escrow and title companies, so the main variables as far as closing costs go between lenders would have been the A + B sections (origination charges and appraisal). It was around $1600 for origination/processing and $700 for appraisal.
Thanks a lot for sharing, yes I do see similar ridiculously high estimates. They certainly are too high and I do not think compared to small lenders or Better/LenderFi, gap can be closed. so in a way, for sure we are paying some premium to get a discount. I am still hesitant to submit a loan application coz of such high closing costs:

Also, did you get an option to opt OUT of Escrow with same rate ? I asked the WF agent and I did not get any response, I assume they would want an escrow so they get more funds every month.

30yr
2.875%
Processing
$1,550
Tax Service
$80
City Tax Stamp Deed
$4,043
Record Deed
$18
Record Mortgage/DOT
$118
Appraisal Fee
$895
Credit Report
$17
Title-Closing/Escrow
$3,000
Title-Courier
$100
Title-Lender's Policy
$3,347
Title-Loan Tie In
$200
Credit for Interest Rate
($5,625)
bogey44
Posts: 4
Joined: Thu Jul 22, 2021 10:43 pm

Re: Relationship mortgage discounts for moving a million assets

Post by bogey44 »

rookie_investor1 wrote: Wed Sep 15, 2021 7:43 pm Thanks a lot for sharing, yes I do see similar ridiculously high estimates. They certainly are too high and I do not think compared to small lenders or Better/LenderFi, gap can be closed. so in a way, for sure we are paying some premium to get a discount. I am still hesitant to submit a loan application coz of such high closing costs:

Also, did you get an option to opt OUT of Escrow with same rate ? I asked the WF agent and I did not get any response, I assume they would want an escrow so they get more funds every month.

30yr
2.875%
Processing
$1,550
Tax Service
$80
City Tax Stamp Deed
$4,043
Record Deed
$18
Record Mortgage/DOT
$118
Appraisal Fee
$895
Credit Report
$17
Title-Closing/Escrow
$3,000
Title-Courier
$100
Title-Lender's Policy
$3,347
Title-Loan Tie In
$200
Credit for Interest Rate
($5,625)

You'll only end up paying the actual costs for the lender's title policy and other title/escrow costs, so I wouldn't worry too much if the estimate is high on those. If you have other lenders offering better terms (lower or no origination costs and/or lower rate), you can take that loan estimate to WF and ask them to match or beat it. Worst thing they can say is no, but for me they matched the lower rate and offered a credit on top which helped with the origination fee.

I don't have escrow for the property tax. My understanding is in California escrow isn't required as long as you put 20% down.
Count of Notre Dame
Posts: 346
Joined: Fri Oct 11, 2013 1:08 pm

Re: Relationship mortgage discounts for moving a million assets

Post by Count of Notre Dame »

Anyone know when I can start the application / appraisal process if I can't close / provide bank statements (I'm trying to "season" gift money) for two months? I really want to lock a rate with BofA but not sure how long they will do it for, and in the meantime I won't have two months of bank statements to provide until mid November.
xerxes101
Posts: 471
Joined: Sat Oct 14, 2017 11:25 am

Re: Relationship mortgage discounts for moving a million assets

Post by xerxes101 »

Count of Notre Dame wrote: Sat Sep 18, 2021 3:27 pm Anyone know when I can start the application / appraisal process if I can't close / provide bank statements (I'm trying to "season" gift money) for two months? I really want to lock a rate with BofA but not sure how long they will do it for, and in the meantime I won't have two months of bank statements to provide until mid November.
I do not believe you can lock for that long. Your lock will expire...but you should call B of A to be sure.
downtownrb
Posts: 20
Joined: Tue Oct 25, 2016 12:13 pm

Re: Relationship mortgage discounts for moving a million assets

Post by downtownrb »

I was at BoA yesterday asking about jumbo mortgages. They gave me the option to lock the rate for 1/8 a point up to 12 months out. A lock under 90 days was free.

$800k purchase, 20% down, $640k mortgage. DTI max for jumbo with 20% down was 43%.

2.125 % for 7/6 AM
2.375% for 10/6 ARM
2.75% for 30 year fixed

Add 1/8 to rate to lock for more than 90 days out. So 7/6 was 2.25%, 10/6 was 2.5%, and 30 year fixed was 2.875%. There was also an upfront 1/2 point fee to rate lock but this fee is credited back at closing.

Add 1/8 point one time ($800) to waive escrow.

Usual move $250k and get 1/8 off rate and $500k for 1/4 off rate.
Last edited by downtownrb on Tue Sep 21, 2021 12:56 pm, edited 1 time in total.
Count of Notre Dame
Posts: 346
Joined: Fri Oct 11, 2013 1:08 pm

Re: Relationship mortgage discounts for moving a million assets

Post by Count of Notre Dame »

downtownrb wrote: Tue Sep 21, 2021 6:59 am I was at BoA yesterday asking about jumbo mortgages. They gave me the option to lock the rate for 1/8 a point up to 12 months out. A lock under 90 days was free.

$800k purchase, 20% down, $640k mortgage. DTI max for jumbo with 20% down was 43%.

2.125 % for 7/6 AM
2.375% for 10/6 ARM
2.75% for 30 year fixed

Add 1/8 to rate to lock for more than 90 days out. So 7/6 was 2.25%, 10/6 was 2.5%, and 30 year fixed was 2.875%.

Add 1/8 point one time ($800) to waive escrow.

Usual move $250k and get 1/8 off rate and $500k for 1/4 off rate.
Was wondering about rate locks myself! Do you have to fill out all the paperwork in order to lock?

Thanks for the information, this is consistent with what I've seen.
downtownrb
Posts: 20
Joined: Tue Oct 25, 2016 12:13 pm

Re: Relationship mortgage discounts for moving a million assets

Post by downtownrb »

Count of Notre Dame wrote: Tue Sep 21, 2021 11:26 am
Was wondering about rate locks myself! Do you have to fill out all the paperwork in order to lock?

Thanks for the information, this is consistent with what I've seen.
Yes, there is some fee to also rate lock and paperwork. I did not do it myself so I am not sure of the specifics. I think he said it is a 1/2 point fee but that was credited back at closing. They wanted to make sure you didn't rate lock and then go with another bank.
downtownrb
Posts: 20
Joined: Tue Oct 25, 2016 12:13 pm

Re: Relationship mortgage discounts for moving a million assets

Post by downtownrb »

Does anyone know if moving an HSA to Bank of America counts towards the $250k transfer of new money for the 1/8 discount?

I would read their terms as "yes", the HSA would be a personal B of A account, but wasn't sure if anyone knew from personal experience if the HSA account counts or not?

Term Language:
Interest rate reductions are available for clients who transfer at least $250,000 after mortgage application into one or more qualifying personal Bank of America account(s), Bank of America Private Bank account(s) or Merrill investment account(s).
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