Is This Wells Fargo Mortgage Offer a Good Deal?

Seeking Advice
1

Hey mortgage professionals,

I’m shopping for a mortgage in the SF Bay Area for a house priced at $2M+. Here’s the situation:

  • Down payment: $1M+ (50%)
  • Credit score: ~750 (our accounts are relatively new)

Wells Fargo is offering a 30-year fixed jumbo loan at 6.375%, with a 0.5% discount if we deposit the down payment ($1M+) into their account for three weeks before closing. This brings the final rate to 5.875%.

For a non-jumbo loan, the rate would be 6.625%, reduced to 6.125% with the same relationship discounts.

Are these competitive rates? Should we watch out for hidden fees or confirm anything in writing regarding the relationship discount? I’d love your insights!

2

That’s a great deal! Wells is essentially buying your business to gain a high-asset client. Just make sure to review the Loan Estimate thoroughly for hidden fees or points. If the terms look good, take the offer.

3

@Arin
Thanks! I’ll definitely go through all the terms carefully.

4

Dallas said:
@Arin
Thanks! I’ll definitely go through all the terms carefully.

Have you considered avoiding banks like Wells Fargo due to their controversial practices? Credit unions might offer better service.

5

@Nyx
We’re not originally from the USA, so we’re not familiar with their history. What should we know?

6

Dallas said:
@Nyx
We’re not originally from the USA, so we’re not familiar with their history. What should we know?

They’ve had issues like fake accounts and other scandals. You might want to research them or consider alternatives like credit unions.

7

As a loan officer, I can say that 5.875% for a jumbo loan with no points or hidden fees is an excellent deal.

8

Larkin said:
As a loan officer, I can say that 5.875% for a jumbo loan with no points or hidden fees is an excellent deal.

Agreed, but I’m waiting for written confirmation that the discount is guaranteed.

9

@Dallas
Three weeks is a short timeframe. Some lenders require deposits for months. If the offer holds true on paper, it’s a no-brainer.

10

@Dallas
This type of offer is standard among big banks. They use it to attract high-net-worth clients.

11

Harley said:
@Dallas
This type of offer is standard among big banks. They use it to attract high-net-worth clients.

Interesting. Why offer it if the money is only temporarily in their account?

12

@Dallas
It’s about boosting deposits and assets under management (AUM). Banks see it as a strategic move.

13

@Dallas
It could also help employees meet deposit targets for bonuses.

14

Wells Fargo is known for offering competitive rates for jumbo loans. This sounds like a solid deal for you!

15

These rates are excellent assuming no points. A typical rate for your scenario might be closer to 6.5% with no lender fees.

16

Solid offer. Review the closing estimate for any hidden fees and go for it if everything checks out.

17

Big banks like Wells often offer the best jumbo rates when you bring funds under management. Check with Chase or other large banks for similar offers.

18

Make sure to read the fine print, but this seems like a good deal. Jumbo loans often allow more flexibility since banks hold them in-house.

19

Shop your Loan Estimate with other lenders offering relationship discounts. They might match or beat Wells’ offer.

20

Tory said:
Shop your Loan Estimate with other lenders offering relationship discounts. They might match or beat Wells’ offer.

I’ve contacted Chase, and they’re asking for the Wells Fargo Loan Estimate before discussing matching terms.