According to the Wall Street Journal, smaller and regional banks are offering big incentives to draw new business. Their efforts are especially focused on jumbo mortgages in hopes of cultivating banking relationships with high-net-worth individuals. According to BankRate.com, banks are “slashing fees or allowing borrowers to roll some of the fees into the mortgage instead of paying upfront.” Others are offering “60-day rate locks at no additional charge.”
Some banks are offering more creative incentives. Doral Bank, for example, has launched a summer promotion in collaboration with the Association of Small Hotel Owners in Puerto Rico offering a free vacation for clients who initiate a mortgage loan by the end of July, and close it by August 31st.
Javier Lugo, Doral Mortgage product manager, explained: “Now is a great moment to refinance or buy, even more when you could end up taking a vacation with your family. As part of our commitment to the community we would like to give our clients something extra. And now, your next vacations could be paid for by Doral.”
Many other businesses take a similar approach. Automakers such as BMW, Ford, GM, Honda, Kia and Nissan offer car incentives and programs for college students and recent college graduates. Savings from these discount programs usually range from $500 to $1,000, if not more!