Lending Solutions from Charles Schwab Bank
Support holistic wealth management strategies with complementary lending solutions offered by Charles Schwab Bank (Schwab Bank), including Pledged Asset Lines® (flexible line of credit) and mortgage products through Rocket Mortgage®, the home lending provider of Schwab Bank.
Help find the right home lending solution.
Schwab Bank offers access to a variety of competitively priced lending solutions, including home mortgages, home equity lines of credit (HELOCs), and Mortgage First, a pre-approval program provided by Rocket Mortgage. For several consecutive years, J.D. Power has ranked Rocket Mortgage highest in the nation in customer satisfaction for Primary Mortgage Origination and for Mortgage Servicing.1 Borrowers can select from a range of mortgage options:
- Adjustable-rate mortgages (ARMs).
- Fixed-rate mortgages.
- Interest-only ARMs.2
Schwab Bank's home lending program through Rocket Mortgage provides:
- A simple and efficient mortgage origination and closing process.
- A dedicated team to support Charles Schwab & Co., Inc. (Schwab) clients.
- Convenient online tools to sign and upload documents and track loan progress.
Explore mortgage rate discounts with Schwab Bank's Investor Advantage Pricing.3
Schwab Bank's Investor Advantage Pricing offers exclusive interest rate discounts for eligible mortgage loan products through Schwab Bank's home lending program provided by Rocket Mortgage. Eligible clients may receive a 0.25%-1.00% interest rate discount on purchase as well as refinance mortgages based on their qualifying assets with Schwab and Schwab Bank.
Investor Advantage Pricing interest rate discounts for select mortgages
|Qualifying non-retirement Schwab assets||For purchase and refinance loans|
|4,500,000 - $8,999,999||0.75%|
- Investor Advantage Pricing interest rate discounts from Schwab Bank are based on the value of a client's combined qualifying non-retirement assets at Schwab, Schwab Bank, and/or assets brought over from other financial institutions.
- Please note that HELOCs and select conforming fixed-rate loans, VA, and FHA are not eligible. View additional rate and payment information for Conforming Loans and Jumbo Loans.
Get a competitive edge when buying a home with Rocket Mortgage's Mortgage First pre-approval program.4
Schwab Bank's home lending provider, Rocket Mortgage, offers Mortgage First―a program in which clients can be preapproved for a mortgage loan before starting their home search. The loan is underwritten up front with full credit, income, and asset verification to ensure an expedited process.
A home equity line of credit can help your clients tap into the value of their home.5
Your clients may be able to take advantage of the equity in their home to finance home improvement projects, consolidate debt, pay for educational expenses, or finance a major purchase. Rocket Mortgage offers a home equity line of credit (HELOC) with a competitive rate. The HELOC offers:
- A revolving line of credit and two types of accounts are available: Standalone HELOCs applied for and opened independently of any other mortgages on the home or Piggyback HELOCs which are applied for and opened simultaneously with the first mortgage at the time of purchase or refinance.
- Low, competitive variable rates based on Wall Street Journal Prime Rate: 3.25% as of March 16, 2020. The annual percentage rate (APR) for a primary residence is 3.99% (standalone rate) / 3.00% (piggyback rate). For the most recent APR for a primary residence, please visit www.schwab.com/HELOC .
- Interest charges only on the amount borrowed during the initial 10-year draw period.
- Flexibility to use the line again once it is paid down prior to the repayment period.
- Easy account access using HELOC checks.
Access the value of your portfolio with a flexible line of credit from Schwab Bank.
To help investors tap into the value of their investments and access cash for personal or business needs, generally without having to sell securities, Schwab Bank offers a Pledged Asset Line. This flexible line of credit can help clients remain invested while providing a source of funds for future business or personal needs. Clients can leverage the value of their portfolio by pledging eligible brokerage assets as collateral6 through a separate Pledged Account maintained at Schwab. Advisors can continue to manage client assets to help meet their investment goals and retain the ability to buy, sell, and trade within the Pledged Account.7
This securities-based, non-purpose8, flexible line of credit can be used to help:
- Renovate a home or provide financing for an investment property.
- Fund a business or new start-up.
- Finance college tuition or other education related expenses.
- Cover tax payments.
- Avoid potential tax consequences caused by the sale of assets.
This flexible line of credit offers:
- Line amounts beginning at $100,000 with a minimum initial advance requirement of $70,000.
- Competitive variable rates, based on the Secured Overnight Financing Rate ("SOFR")9 plus an interest rate spread.
- Interest charges only on the amount of the line used.
- Line access via checks or wire transfers.
- No set-up fees or prepayment penalty. Brokerage fees and commissions may apply.
Entering into a Pledged Asset Line and pledging securities as collateral involve a high degree of risk. At any time, including in the event that the loan value of collateral is insufficient to satisfy the minimum loan value of collateral or to support the outstanding loans, Schwab Bank may demand immediate payment of all or any portion of the outstanding obligations, or require additional cash or securities to be added to the Pledged Account maintained at Charles Schwab & Co., Inc. If a Demand is not addressed, the pledged securities may be immediately liquidated without further notice to you, which may result in tax consequences.
To learn more, visit the Introduction to the New Pledged Asset Line section in the Service Guide or call Schwab Bank at 800-497-7470 to speak with a Regional Banking Manager.
Pledged Asset Line rates
|Loan Value of Collateral at Origination||Index||Interest Rate Spread|
|$100,000 to <$250,000||SOFR||4.65%|
|$250,000 to <$500,000||SOFR||3.40%|
|$500,000 to <$1,000,000||SOFR||2.90%|
|$1,000,000 to <$2,500,000||SOFR||2.40%|
|$2,500,000 and above||SOFR||1.90%|
Schwab Bank reserves the right to change any part of the interest rate after the Pledged Asset Line is established, including the daily Secured Overnight Financing Rate ("SOFR") reference rate, interest rate spread, or post-demand spread.
The initial variable Annual Percentage Rate on the Pledged Asset Line, based on the loan value of the collateral pledged at origination, is the sum of SOFR plus the applicable Interest Rate Spread shown above. Pledged Asset Line amounts begin at $100,000 with a required initial minimum advance of $70,000.
This offer is subject to change or withdrawal at any time and without notice. Nothing herein is or should be interpreted as an obligation to lend. Loans are subject to credit and collateral approval. Other conditions and restrictions may apply.
Charles Schwab Bank, SSB, is not acting or registered as a securities broker-dealer or investment advisor.
Contact us by phone or via our online contact form to find a local representative.
All inquiries are confidential.
Brokerage Products: Not FDIC-Insured • No Bank Guarantee • May Lose Value
In order to participate, the borrower must agree that the lender, Rocket Mortgage, may share their information with Charles Schwab Bank and Charles Schwab Bank will share their information with the lender Rocket Mortgage. Nothing herein is or should be interpreted as an obligation to lend. Loans are subject to credit and collateral approval. Other conditions and restrictions may apply. This offer is subject to change or withdraw at any time and without notice. Interest rate discounts cannot be combined with any other offers or rate discounts. Hazard insurance may be required.
1. Rocket Mortgage received the highest score in the J.D. Power 2010 – 2020 (tied in 2017) Primary Mortgage Origination and 2014 – 2020 Primary Mortgage Servicer Studies of customers' satisfaction with their mortgage sales experience and mortgage servicer company, respectively. Visit JDPower.com/Awards.
2. Interest-only mortgages have an initial interest-only payment period followed by a fully amortizing payment period. After the interest-only period ends, the monthly payments will increase because your client will be paying both principal and interest. Interest-only mortgages include additional risks your client should consider. For more information about these risks, please contact a home loan specialist.
3. Schwab Bank Investor Advantage Pricing: For Schwab Bank Investor Advantage Pricing (IAP): Loans are eligible for only one Investor Advantage Pricing discount per loan. Select mortgage loans are eligible for an interest rate discount of 0.25% - 1.00% based on qualifying assets of $250,000 or greater. Discount applies to ARMs, Jumbo 15-yr and Jumbo 30-yr fixed (excludes HELOCs, VA loans, and FHA loans). Discount for ARMs applies to initial fixed-rate period only.
Qualifying assets are based on non-retirement Schwab brokerage and Schwab Bank combined account balances, including:
a) Brokerage accounts in which the borrower(s) is an owner, trustee or custodian;
b) Bank accounts in which the borrower(s) is an owner or trustee: checking & savings;
c) Business Corporation, LLC, Partnership and Sole Proprietorship accounts may be eligible depending on the borrower’s ownership and role.
Retirement accounts, including all IRAs, are excluded from this offer. Schwab Bank makes its best effort to identify all qualifying assets based on your Social Security Number. If you have questions regarding your specific assets or account eligibility, please call your Schwab Bank representative for assistance.
Clients must notify Schwab and Rocket Mortgage of any new assets brought to firm during processing. Qualifying new assets should be deposited and verified 15 days prior to the anticipated closing date to avoid closing delays. If the qualifying assets are deposited with less than 15 days remaining before closing, the closing date may be delayed, and eligibility to receive the interest rate discount may be affected. For the $9MM tier, you must apply and lock your interest rate on or after 7/30/21 to qualify for the discount offer.
4. For Mortgage First: Mortgage First is a service available exclusively from Rocket Mortgage. Rocket Mortgage verifies the home buyer's income, reviews credit, and underwrites the proposed loan without an identified property. Not all properties are eligible. Once a property has been identified and approved, Rocket Mortgage may issue final loan approval. The interest rate does not lock until a contract is entered, and so rates may change without notice. Other conditions and restrictions may apply. No loan will issue without buyer's provision of insurance, an adequate appraisal, and clear title. This advertisement is not an offer to lend, and does not empower your client to accept any loan agreement. Mortgage First terms and conditions may change without notice.
5. Home equity lines have a 10‐year draw period followed by a 20‐year repayment period. During the draw period, monthly payments of accrued interest are required. Payments will increase if rates increase. At the end of the draw period, the required monthly payments will increase because your client will be paying both principal and interest. Your client may not use this home equity line as a bridge loan, for commercial purposes, to invest in securities, or to repay a margin loan.
HELOC Terms: First lien standalone HELOCs are available. Second lien standalone or piggyback HELOCs are available with an eligible Schwab Bank first lien loan. As of 3/16/2020 the annual percentage rate (APR) for a primary residence HELOC opened simultaneously with your first mortgage loan—also known as piggyback loan—is 3.00% . Rates vary for second homes, vacation homes, or HELOCs opened as standalone accounts. The APR on your home equity line of credit is variable based upon the Wall Street Journal Prime Rate plus a margin. The maximum APR that can apply is 18% or the maximum amount permitted by state law, whichever is less. The minimum credit line amount is $50,000 or the minimum amount permitted by state law, whichever is less. The maximum credit line is $1,000,000. Additional terms and conditions apply. Please contact your Schwab Bank representative for assistance regarding eligible loan types.
HELOC Fees: The estimated range of fees your client may pay is from $0 ‐ $29.00 for every $1,000 of your line amount, and will vary based on the location of the property. The amounts provided are estimates and are not a substitute for initial disclosures of closing costs that your client will receive once they apply for a home equity line of credit with Rocket Mortgage. Proof of proper and adequate insurance may be required prior to closing. Your client is responsible for paying any state, county, or local taxes imposed on a home mortgage transaction.
6. Pledged Asset Line: Schwab Bank, in its sole discretion, will determine at any time the eligible collateral criteria and the loan value of collateral. Schwab Bank requires that the assets pledged as collateral for the Pledged Asset Line be held in a separate Pledged Account maintained at Charles Schwab & Co., Inc.
7. The Pledged Account is not to be used for day trading. If trades are placed in this account, the type of asset purchased may affect the loan value of collateral; additionally, certain types of assets are prohibited from being held in a Pledged Account.
8. A non-purpose line of credit may not be used to purchase securities, pay down margin loans, or be deposited into any brokerage account. Proceeds may not be used to purchase securities or to pay down margin loans; proceeds may not be deposited into a Schwab brokerage account.
9. Schwab Bank reserves the right to change any part of the interest rate after the Pledged Asset Line is established, including the SOFR Index Rate, interest rate spread, or post-demand spread.
Charles Schwab Bank, SSB and Charles Schwab & Co., Inc. are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation. Brokerage products, including the Pledged (Asset) Account, are offered by Charles Schwab & Co., Inc., Member SIPC, and are not insured by the FDIC, are not deposits or obligations of Charles Schwab Bank, SSB and are subject to investment risk, including the possible loss of principal invested. Charles Schwab & Co., Inc. does not solicit, offer, endorse, negotiate or originate any mortgage loan products and is neither a licensed mortgage broker nor a licensed mortgage lender. Home lending is offered and provided by Rocket Mortgage, LLC. Rocket Mortgage LLC., is not affiliated with The Charles Schwab Corporation, Charles Schwab & Co., Inc. or Charles Schwab Bank, SSB. Deposit and other lending products are offered by Charles Schwab Bank, SSB, Member FDIC and Equal Housing Lender.
Rocket Mortgage, LLC; NMLS #3030; www.nmlsconsumeraccess.org. Equal Housing Lender. Licensed in 50 states. AL License No. MC 20979, Control No. 100152352. AR, TX: 1050 Woodward Ave., Detroit, MI 48226-1906, (888) 474-0404; AZ: 1 N. Central Ave., Ste. 2000, Phoenix, AZ 85004, Mortgage Banker License #BK-0902939; CA: Licensed by Dept. of Business Oversight, under the CA Residential Mortgage Lending Act and Finance Lenders Law; CO: Regulated by the Division of Real Estate; GA: Residential Mortgage Licensee #11704; IL: Residential Mortgage Licensee #4127 – Dept. of Financial and Professional Regulation; KS: Licensed Mortgage Company MC.0025309; MA: Mortgage Lender License #ML 3030; ME: Supervised Lender License; MN: Not an offer for a rate lock agreement; MS: Licensed by the MS Dept. of Banking and Consumer Finance; NH: Licensed by the NH Banking Dept., #6743MB; NV: License #626; NJ: New Jersey – Rocket Mortgage, LLC, 1050 Woodward Ave., Detroit, MI 48226, (888) 474-0404, Licensed by the N.J. Department of Banking and Insurance.; NY: Licensed Mortgage Banker – NYS Banking Dept.; OH: MB 850076; OR: License #ML-1387; PA: Licensed by the Dept. of Banking – License #21430; RI: Licensed Lender; WA: Consumer Loan Company License CL-3030. Conditions may apply. Lending services provided by ©2000 – 2021 Rocket Mortgage LLC, a subsidiary of Rock Holdings Inc. “Rocket Mortgage” is a registered service mark of Intuit Inc., used under license.