Anyone have experience with First Republic Bank Mortgage?

[Duckworth]

Hello

I refinanced my student loans with FRB. They required 10% of the loan origination amount to be in the checking account to lock in the relationship rate of 3.35% for 10year fixed. My principal was 169000, currently around 145000 2 years in and I could pay it off tomorrow if I wanted to, plan on doing so soon.

I am looking into mortgages and I was wondering if anyone here has had experience with mortgages at FRB. We are discussing a hypothetical 700K home purchase with 20% down in their First Home Program (areas we are looking at do not qualify for Eagle home community loan), currently they are offering 30 year fixed @ 3.45%, 7/1 ARM @ 3.2% and 5/1 ARM @ 3.1%. Closing cost credit up to 4K. To take advantage of "relationship pricing" at this price point you must have 15% of the loan amount (around 84K in this instance) across all FR accounts (not sure if this is checking/savings/MM only or if investment accounts count as well, or else rates are 1 percentage point higher.

My questions are:
Has anyone gotten a mortgage with FRB want to share their experience?
Is it worth the "relationship banking" and tying up your cash with them, assuming you shop around and they are offering competitive rates? My experience with them with student loans have been excellent and I keep the 17K in my checking and have a separate Ally savings account for the rest of my cash.
My understanding is that the 84K can also be in investment accounts (?), does anyone have experience investing with FRB?

Thanks!

[rxor49]

I have no comment on mortgages. However, you should check your loan documents. Mine say I need 20% of principal in my checking acct on day 90 and day 365 post-origination of the loan. At 2 years out, you likely don't need to meet the liquidity requirement anymore.

[Lordosis]

I do not think that mortgage rate is very competitive right now. I was able to get less than that six months ago. I realize this might have something to do with region. But I would hate to have to lock my money up in a low-interest-rate environment just to secure a not great mortgage.
Also also if you are considering an arm do you plan on paying the house off quickly or would you want to stretch it out over the term of the mortgage. If you are planning on paying it off in 5 to 7 years then it might be a good deal. Otherwise they do not seem to be giving you a very good rate differential on those.

[Duckworth]

I do not think that mortgage rate is very competitive right now. I was able to get less than that six months ago. I realize this might have something to do with region. But I would hate to have to lock my money up in a low-interest-rate environment just to secure a not great mortgage.
Also also if you are considering an arm do you plan on paying the house off quickly or would you want to stretch it out over the term of the mortgage. If you are planning on paying it off in 5 to 7 years then it might be a good deal. Otherwise they do not seem to be giving you a very good rate differential on those.

I feel the same, am going to shop and see if they are willing to drop based on competitors rates. Thats a lot of cash doing nothing for me if I have to keep it in checking/low interest savings

Thanks, as always!

[Duckworth]

I have no comment on mortgages. However, you should check your loan documents. Mine say I need 20% of principal in my checking acct on day 90 and day 365 post-origination of the loan. At 2 years out, you likely don't need to meet the liquidity requirement anymore.

Interesting, I know they change their terms not infrequently, I will take a look at the contract. Im actually just 1.5 years out now that I think about it, but still more than 365 d.

Thanks very much! if thats the case then Id be a little upset at the lack of transparency as Ive asked the agent about this in the past but gotten not a 100% striaght answer, esp since their banking is so relationship based

[Duckworth]

I have no comment on mortgages. However, you should check your loan documents. Mine say I need 20% of principal in my checking acct on day 90 and day 365 post-origination of the loan. At 2 years out, you likely don't need to meet the liquidity requirement anymore.

My contract says the same thing! Did you wind up going below the requirement without issue?

[rxor49]

I have dipped below and nothing happened. However I am using the account as my primary checking and emergency fund and such, so I am planning on keeping it around the 20% level for the time being.