Sherry Wang from Citi Mortgage is Fantastic!

[usctrojancpa]

I honestly wonder how she can beat other big bank loan officers. I feel she is probably taking slightly less on her end in exchange and depends strictly the volume of her closes as well as referrals

CitiBank offers a relationship discount that no other big bank can match. With as little as $50k in a new Citi account, you get a 1/8% discount on your interest rate. I'm sure she isn't out to make a killing on any loan and is all about repeat and referral business, kind of how some realtors do you rebates....give up a little now to get more later.

 

[CalBears96]

CitiBank offers a relationship discount that no other big bank can match. With as little as $50k in a new Citi account, you get a 1/8% discount on your interest rate. I'm sure she isn't out to make a killing on any loan and is all about repeat and referral business, kind of how some realtors do you rebates....give up a little now to get more later.

Cal Pac offers incentive to go with US Bank (2% discount first year, 1% discount 2nd year), but Shea doesn't offer any. I will probably end up using Sherry Wang again for the relationship discount.

 

[sgip]

Citi's relationship discount is a great deal compared to all other Banks relationship offers.

If you have an offer for a 2-1 rate buy down, it could be the better choice. If the lender (US Bank in this case) puts in writing that if you refinance the loan within the first two years the buy down funds are paid to the borrower (which is usually, but not always, the case) then you could see a fat check come to you if rates do fall. Assuming a Spring 2024 closing, odds are a Spring 2025 rate environment may favor a refinance. Hell, if I was going to pay cash, I'd still finance up to the amount I would qualify for, payoff the loan post closing, and get that seller buy down refund right away (about 2-2.5 percent of the loan amount)

Remember that "May" is not "Will" be a positive turn in rates so weigh in the balance any benefit of a great relationship discount today vs a possible buy down refinance payout tomorrow. A lucky buyer who has both options on the table will have some deep thinking ahead to make the right decision for themselves.

 

[CalBears96]

Citi's relationship discount is a great deal compared to all other Banks relationship offers.

If you have an offer for a 2-1 rate buy down, it could be the better choice. If the lender (US Bank in this case) puts in writing that if you refinance the loan within the first two years the buy down funds are paid to the borrower (which is usually, but not always, the case) then you could see a fat check come to you if rates do fall. Assuming a Spring 2024 closing, odds are a Spring 2025 rate environment may favor a refinance. Hell, if I was going to pay cash, I'd still finance up to the amount I would qualify for, payoff the loan post closing, and get that seller buy down refund right away (about 2-2.5 percent of the loan amount)

Remember that "May" is not "Will" be a positive turn in rates so weigh in the balance any benefit of a great relationship discount today vs a possible buy down refinance payout tomorrow. A lucky buyer who has both options on the table will have some deep thinking ahead to make the right decision for themselves.

Actually, no matter how you look at it, the 2-1 rate buy down is ALWAYS better relationship discount at the time of purchase. Even if rates don't come down much, you can still refinance a year (or two) later at slightly lower rates with relationship discount. Unless relationship discount is for purchase only.