Quote:
Originally Posted by TrudyM
Situations alter cases. If you have a loan on your current home then getting a loan on your new home may be tricky as they look at three things mostly.
1. Total payments a month as a % of income.
2. Total indebtedness to net worth.
3. Stability of income stream and liquidity.
Also Retirement accounts are not considered security as they can't touch them under a lot of state laws (don't know about Florida)
We have a huge loan on our current home so a mtg to purchase down here was totally out of the question. We discovered that our Brokerage firm had a thing called a Portfolio loan that had a low interest rate and that could be fixed or a variable rate option. It is a loan against the stock in your account but can not be taken out against a 401K rollover or IRA account only straight brokerage. The interest rate is half that of current margin so a much better deal than a margin loan and works like a home equity line of credit.
Just an option and good to know is out there so you don't have to sell stocks at the wrong timing if you need money in the short term.
|
My guess is that if the value of the pledged stock falls past a defined percentage of the outstanding loan, the borrower will need to post additional security on pay down---- yes? no?