Hi, we are in the home buying process and exploring mortgage loan options. Wells Fargo (with relationship discount) seems the most promising and what we are leaning towards (currently quoted 2.75% base rate for 30 year fixed + 0.125% discount for every $250k transferred in assets + any discount points we buy). I had a couple of questions about the fund transfer part: 1. Does cost basis get transferred to the Wells Trade account as is or are there additional steps involved? When inquired with WF Trade Advisors, the person mentioned funds show up first and cost basis gets transferred over later (although judging by the person's confidence and seeing posts about the cost basis here, I am not 100% convinced) - transferring from Fidelity/Schwab 2. If rolling over 401k, were there similar fund/investment options in Wells Trade compared to existing institutions (Fidelity is our current broker) Any help/insight appreciated if someone has gone down this route recently, thanks 🙏 Edit: Did this succesfully and cost basis transferred over a couple of days after the stocks. For 401k, Fidelity sent me a check which I then had to mail to Wells Fargo - they do not transfer 401k directly - 401k got moved over as cash rollover (pretax) to IRA account and I have the option to invest in whatever funds they have available. Household TC: ~$550k #housing #bayarea #mortgage #wellsfargo
I know people who have had a very good experience with them.
Cost basis does get transferred. If you have a 401k not attached to your company you should roll it to an IRA. I'm currently trying to figure out how to get my IRA back go Fidelity as the trade fees for options are high at WF. Also their site / app is bad. You don't need to keep the money with them luckily.
You can also get a lower rate at boA and ask wells to match it with relationship discount.
Can you clarify if Wells would match a lower base rate, and then layer the full relationship discount on top of that (up to 0.5%)? Do you have a recent datapoint you can provide? I just locked in 30y fixed jumbo refi at wells for 2.75% no-cost (negative points to offset), then -0.5% relationship discount to make it 2.25%. Not sure if possible to go lower at 30y
Can you please share your contact? Mine is 2.875 at Wells Fargo after relationship discount :(
I have a Wells Fargo Mortage in SF and at the time had a large balance with Wells Fargo advisors and brokerage— that deal looks good and better than what I was offered (6 years ago). Cost basis will transfer in if you transfer the assets in-kind, so 500 shares of MSFT at $100 basis would not reset. This gets to be complicated if you own a Fidelity-specific fund that Wells can’t access for some reason. In that case, they might recommend selling and re-buying a “like fund”, which does incur gains taxes and resets the basis. That said, I’ve only seen a need to do that on money market funds, where the gains are practically 0 anyway. The paperwork of these transfers is a hassle and check all the details. Save offline statements including basis, just in case you have to go back. I liked Wells Fargo’s brokerage account ok. The UI is nice and it’s instant to transfer money in and out of a Wells checking account. But they didn’t offer any online trades (much less free trades) and I switched my investment accounts a few years ago.
How many 250ks can you do? Can you go sub 1? Lol
Upto 1 million so .5 max
Rates have dropped a lot since I did this. Cost basis for rsu is not transferred but regular stocks and stuff do get transferred.
Hi could you clarify on the RSU and regular stocks part? Eg: I have vested RSUs from current employer and also previous employer which would effectively be stocks. Did you mean the cost basis for these vested RSUs wont transfer over but stocks I individually purchased would?
I'm not sure what the original reply was trying to say. Once an rsu grant vests of a public company, you receive shares that can be transferred to any brokerage account. The cost basis will be retained across brokerages A few times I noticed the cost basis was not retained, so I sent a message to my new brokerage with the correct cost basis (according to my records) and they manually corrected it This will work just as well to transfer shares (from previously vested rsus) to the wells Fargo brokerage for the purpose of getting the discount. Once the loan closes, you are free to do whatever you want with the shares, including transferring back to any other brokerage. Cost basis never changes and no shares are sold during transfers
You can do the transfer and get the 0.5% discount for 1M. Cost basis for regular brokerage account transfers easily. For my equity awards account they didn't get cost basis. I actually transferred back my equity shares to Schwab and they had the cost basis anyway.
Was it ESPP or RSU, did they lose cost basis for all? How was Schwab able to retrieve it, I thought EAC was one way traffic
I did both. It wasn't wells Fargo's fault. Schwab didn't give the cost basis to them. My eac was with Schwab and hence when I transferred back to their brokerage, they filled the cost basis for me.
Not what you asked, but Wells is notorious for not closing on time. They moving very slowly.
Can confirm
Totally depends on loan agent just closed in 21 days also if you have competing written offer they will lower the rate to match I start 2.75 and got close 2.6 with competing rate from bofa