Dallas
November 23, 2024, 8:38pm
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!
Arin
November 23, 2024, 8:38pm
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.
Dallas
November 23, 2024, 8:38pm
3
@Arin
Thanks! I’ll definitely go through all the terms carefully.
Nyx
November 23, 2024, 8:38pm
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.
Dallas
November 23, 2024, 8:38pm
5
@Nyx
We’re not originally from the USA, so we’re not familiar with their history. What should we know?
Nyx
November 23, 2024, 8:38pm
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.
Larkin
November 23, 2024, 8:38pm
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.
Dallas
November 23, 2024, 8:38pm
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.
Larkin
November 23, 2024, 8:38pm
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.
Harley
November 23, 2024, 8:38pm
10
@Dallas
This type of offer is standard among big banks. They use it to attract high-net-worth clients.
Dallas
November 23, 2024, 8:38pm
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?
Nyx
November 23, 2024, 8:38pm
12
@Dallas
It’s about boosting deposits and assets under management (AUM). Banks see it as a strategic move.
Hollis
November 23, 2024, 8:38pm
13
@Dallas
It could also help employees meet deposit targets for bonuses.
Luca
November 23, 2024, 8:38pm
14
Wells Fargo is known for offering competitive rates for jumbo loans. This sounds like a solid deal for you!
Corey
November 23, 2024, 8:38pm
15
These rates are excellent assuming no points. A typical rate for your scenario might be closer to 6.5% with no lender fees.
Hollis
November 23, 2024, 8:38pm
16
Solid offer. Review the closing estimate for any hidden fees and go for it if everything checks out.
Charlie
November 23, 2024, 8:38pm
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.
Wendell
November 23, 2024, 8:38pm
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.
Tory
November 23, 2024, 8:38pm
19
Shop your Loan Estimate with other lenders offering relationship discounts. They might match or beat Wells’ offer.
Dallas
November 23, 2024, 8:38pm
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.