I have quite a bit of stock sitting in my etrade account. I’m thinking about an all cash offer and need to borrow around 700k with etrade line of credit. Has anyone done this before? What would I be aware of? Thanks #mortgage #housing #sanfrancisco
Your stocks will get blasted in a downturn. Like 30% down and they’ll sell at the bottom and pay off your loan unless you’re able to have multiple 6 figures of cash to put in before that happens. I.e: you have 1m stock and take 700k margin to buy house. Market dips 30% and your stock is now worth 700k and hits the margin maintenance requirement of 50%, so your brokerage decides to close out your position, selling the 700k stocks to pay your 700k loan. GG 1m stocks to 0 in a flash
I will immediately get a mortgage to pay the loan. I also want to get the tax benefits for 750k mortgage. Anything else I should be aware of? Also do you know if I will pay interest per month or year? Thanks btw
What is interest rate difference between mortgage and etrade line of credit to make this move work?
I think you are right 🥲
interested in this as well, but I don't think the line of creidt you get will be 100% of your stock value.
Just keep submitting offers with mortgages… I think all cash offers are overrated and when you don’t already have cash on hand it’s not worth the hassle
Following