I believe is new money, can be either cash or stocks. In addition, I believe he bought points paid by his company.
It just needs to be in any wells fargo account (bank, savings, brokerage, etc). It doesnāt have to be new money either, just total before loan process starts.
If stocks account counts thatās not that hard to have 1M total. How long do you need to keep the money at WF?
Exactly. Broker mentioned that it doesnāt matter. Just need that amount before the loan and after that, they donāt care. I donāt remember signing anything for it either.
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Most of the big banks are doing this. You usually only need it there until the loan closes. We got 0.25% off a recent refinance with BofA for moving 500k in assets. The thresholds are usually 250k, 500k and 1M for increasing discounts.
They keep changing the discount rates, but yeah, we did it thru wf then with citi - both times got discounts via putting $ in their accounts (cash, stock, 401k etc).
https://www.bogleheads.org/forum/viewtopic.php?t=280692
When moving $$ out of their bank, they try to give you deals to retain that there (higher interest rates etc). May take couple of phone calls to decline, but otherwise pretty painless.
This still comes back to what youāre trying to accomplish:
Are you buying a home for yourself to live in for 5-10 years? Buy.
Are you buying a home to rent out? Flee the state. Seriously with all of the rent control crap trying to be passed and an increase in renters and decrease in owners, why would you want to rent something out? And then thereās what happened to Jilāopportunistic lawsuits.
Also, a friend who is buying a second home said she is unable to get insurance. She called 30+ people and got 30+ nos. Only one she didnāt call was USAA. Apparently no one is willing to insure CA houses after the wildfire crap. maybe thatāll force our govās hands into sensible land management measuresā¦or maybe itāll pad CAās pockets since theyāre the only ones selling home ownerās insurance now.
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We got a loan in the same way. Father-in-law put $1M in then took it out after we refinanced.
2%?
Noā¦ I think itās 3.5% on $1.4M loan. It was last October or so.
I think my husband checked again in June and was told something that wouldnāt be much of an improvement, but Iāll ask him to check again.
I heard Refi are off by 1/2 a point from purchase . It would rev interesting to know how much of refi
@cloud Sorry, I think we may be talking apples and oranges. We have a 30 yr fixed. I assume you were looking at the 10/1 ARM rate?
(take .5% off for depositing $1M)
Thatās what I thought and I asked above. He said it was 30 yr fixed.
What amount? I donāt think WF can do 2% then. Itās the listed rates -0.5% for having $1M in the bank. Unless maybe heās got some super-low mortgage?
It was a 2% 30 tear fixed about 2 months ago
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The rates listed by the large banks are representative of a pretty typical loan, i.e. 720+ credit, 80% LTV, etc. Itās definitely possible to do better with lower LTV/higher credit. They will also sometimes negotiate. One strategy is to bring them a rate from another bank (e.g. 2.625% 30yr Jumbo purchase from BoFA) and ask if they can beat it. Letās say they go to 2.5%. Then you apply the 0.5% relationship discount and you are at 2%. If you are sneaky you can bring them a rate that already has a relationship discount built in, ask if they will match it and then apply another relationship discount.
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These good deals are for owner occupied.
Any banks offer similar rates for rental property? Refi 
?