Wednesday, August 23, 2017

Rich Is Better

Filed under life is not fair.

JPMorgan sent me their latest purchase and refinance rates.  Not bad but with a twist.

Assets & Balances of <$1m
Rate 4.000%  APR 4.008%
Assets & Balances of $1m - $5m
Rate 3.750%  APR 3.757%
Assets & Balances of $5m+
Rate 3.500%  APR 3.507%

Even more interesting are the HELOC 10/20 quotes:


Assets & Balances of <$1m
LIBOR + 3.000%
Assets & Balances of $1m - $5m
LIBOR + 2.750%
Assets & Balances of $5m+
LIBOR + 2.500%

So if you had a couple million worth of houses say, you could borrow against the equity at very favorable rates. 

55 comments:

Cinco-X said...

First!!!!!¡!

Rob Dawg said...

Comerica report this morning:
New home sales were much weaker than expected in July, falling to a 571,000 unit rate. This was the lowest sales rate since last December. Over the previous 12 months, new homes sales were down 8.9 percent. We have been differentiating between the new and existing home markets in our recent commentary, but with the soft July new home sales, we can say that both broad components of the housing market appear to be range bound, showing no momentum in 2017. July new home sales were the weakest in the Northeast, which saw a 23.8 percent decline. Sales in the West dropped by 21.3 percent. The South lost 4.1 percent while the Midwest improved by 6.2 percent. The inventory of new homes on the market has increased from a tight 5.0 months’ worth in March, to a looser 5.8 months’ worth in July. Over the 12 months ending in July, the median sales price of a new house increased by 6.3 percent.
-----
Note the months inventory.

Mike said...

I don't understand those rate quotes.."assets and balances"..are they referring to the borrowers net worth before they purchase the property?? I'm guessing it's not the loan amount for the property..those rates usually go up with loan size (jumbos vs conventional)

Lawyerliz said...

Good. Point

Rob Dawg said...

Yup. Rich people get better rates. Okay Tanta even acknowledged the "c" capacity to pray but this JPM offer just hit me as ignoring all the other factors.

LBD said...

It's even nicer not to have to deal with banksters. :)

Mike said...

That's interesting..because they used to just be interested in income and existing debt payments (to come up with a DTI ratio)..now they want to see the whole balance sheet I guess.

Mike said...

For multiple property owners..i wonder if they require appraisals on all of the properties to confirm your net worth "bucket"..

LBD said...

Maybe they are going off the county assessors value. I remember when you could refi with out an appraisal if you where borrowing 80% or less of assessed value.

Mike said...

yeah..must be something like that..otherwise the cost of the appraisals would wipe out any benefit you get from the lower rate..

Rob Dawg said...

Make no mistake that they wish to become friends with rich people too.

Mike said...

yeah..once they get a full look at your financials..they can start cross-selling you all kinds of stuff

Lawyerliz said...

Pay cash.

Rob Dawg said...

Not a day goes by that some cold call asks a question that both attempts to collect a piece of data and by answering "establishes a relationship." They must burn in hell.

Rob Dawg said...

Googlag and Walall joining forces. Oh yeah, that will turn out well.

Lawyerliz said...

Ok.

Trump is threatening to shut the government down if we don't build his stupid wall. The Republicans will burn in hell after they lose the mid tern elections.
And, just how much humiliation will they take?

Lawyerliz said...

I hate Wallmart. I never go in there unless dragged by hub. Adding Google to it does nothing for me.

Rob Dawg said...

Liz. Brace yourself. The Republicans cannot "lose" the midterms. The numbers are just not there. Absolute worst case or best case or whatever case is they get close to parity in the House.

Lawyerliz said...

Well, Zillow doesn't love me anymore.

Lawyerliz said...

You want the wall

.
.
.
Or, shutdown.
.
.
.
Say, isn't that blackmail?

LBD said...

I will take the wall and the shut down if they don't get it done. Just send my SS check please. LOL!

Lawyerliz said...

People were really mad about not getting in the national parks. SS was not at issue last time.

Lawyerliz said...

That's what I thought, but not anymore. He's shot his foot off

LBD said...

Maybe if people got mad at party politics then something they voted for might get done. IMO

Lawyerliz said...

Nah, they'd weasel out.

Rob Dawg said...

4oz Teriaki Coho Salmon grilled.
8oz plain Coho Salmon grilled.
Frozen peas.
Sweet potato baked fries.

simple. tasty. hard to cook for just two.
apparently there is a back side to the refrigerator.

last week there were three shrimp cocktail sauces, two yellow mustards, two straight ketchups. two mayonnaise in the fridge. that's five fewer jars in there.

Mike said...

covfefe!!

Mike said...

Nobody goes to the national parks in Oct anyways..

Rob Dawg said...

> Nobody goes to the national parks in Oct anyways..

Say what? The absolute best month to visit the Yosemite Valley. A very good month to to camp Joshua Tree. Upper VT, Upper NH, Southern Maine foliage unsurpassed anywhere on the planet barely equaled by the Aspen turn in the Rockies. Yellowstone before the first snows. Lassen with the first snows that don't stick. Shall I continue?

Mike said...

I was being a bit sarcastic..but it is the "slow" season for most of them (kids back in school, vacations are done, etc)..

I'm guessing the NP's pay for themselves (thru entrance fees)...so no real reason to shut them down anyways imo..other than it's a negotiating lever for the Dims

Mike said...

Remember Obama shutting down White House tours during the last one?? What a joke..they live in fear of the guv shutting down and nobody noticing a difference in their lives.

Lawyerliz said...

Well, they complained of not being able to go.

Lawyerliz said...

They were in truth shut down. Liz pulls hair.

Lawyerliz said...

Some were mad abut that. My son's job at the VA is safe for another year. VA is protected

Lawyerliz said...

One thing is sure. The people are gonna be mad at the Repubs.

Lawyerliz said...

Kitty is purring. Kitchen is sorta clean

LBD said...

Good Morning!

People are going to be mad at congress, at least those who understand and MSM will be mad at T.

Will be gone for a few days to a State Park. Iffy cell reception, That might be a good thing. Have a good week end!

Mike said...

One thing is certain..CNN will start with the guv shutdown "horror stories" any day now..

Cinco-X said...

Is that a surprise, or even unreasonable? Greater capacity to pay back the loan means, presumably, lower risk.

Cinco-X said...

Take a look at the Senate map

Cinco-X said...

We need to make it a point to put the opening date on some of our condiments. If I grab a mayonnaise jar out of the fridge, and can't remember the last time it was used, it's time to throw it out...

Mike said...

Senate Democrats estimate the wall could cost as much as $70 billion, and at least three have said they will not support a so-called continuing resolution, a placeholder for a full budget, if it includes money for the wall.

wow Liz ..isn't that "blackmail"??

Cinco-X said...

Morning y'all

Mike said...

Cinco..check your lottery tickets...winner was from western Mass...

Lawyerliz said...

Yeay. But he did it first. . Points finger.

Lawyerliz said...

If you win, must give us tickets to visit you

Mike said...

wow..so every politician who has ever said "if this bill does/does not include (insert pet project/cause)..I'm not voting for it" is engaged in blackmail...interesting perspective.

Rob Dawg said...

> Cinco..check your lottery tickets...winner was from western Mass...


Cinco is a classy guy. He wouldn't be caught dead in Chicopee. ;)

Rob Dawg said...


"It could probably be shown by facts and figures that there is no distinctly native American criminal class except Congress."
~ Pudd'nhead Wilson's New Calendar.

Rob Dawg said...

New Thread.

Cinco-X said...

Ya... I'm not from that far West... But I did get the Power Ball on one of my quick picks, and I think that returns $4... Between that and the scratch ticket, my $15 "investment" returned $14... That's better than npoic's newsletter...

Cinco-X said...

Lol...I got friends in low places

Encinitas Undercover said...

Mike et. al.,

When they talk about assets & balances they're talking about stocks/bonds/cash you hold at JPM, plus loan balances.

Rob Dawg said...

EU, I am not positive but I think portfolio total not just JPM. If you think about it JPM wouldn't suggest you put everything with one agency even them. This look like a way to attract new clients.

Don't be a stranger. We are a good bunch around here.

Encinitas Undercover said...

Could be, but when I've seen this kind of pricing at Schwab it was about Schwab accounts only. At least there, it's an asset-gathering strategy, not a net-worth test.

Love the blog and glad it's back!