Graphic - Leverage
Leverage stocks text D

 

 Investors who can’t document their income, who need jumbo loans, don’t fit conventional loan guidelines or want a loan below FNMA Rates with very low closing costs have another option with securities-based lending. This form of lending allows pledged securities such as stocks, bonds, mutual funds or Treasury bills to stand as collateral for borrowed funds for personal or business use. The types of loans are usually interest-only, fixed-rate loans carrying interest rates from 2.5 percent to 4.5 percent with minimum terms of three years.

 Benefits of securities-based lending:

  • Fixed interest rates between 2.5% and 4.5%.
  • Interest Only quarterly loan payments.
  • Loan terms of 3, 5, 7, or 10 years.
  • Minimum loan $100,000 with no maximum.
  • Low closing costs.
  • No lenders fees.
  • No credit check or income verification.
  • Funds may be used for any purpose including personal or business use.
  • Non-recourse loan. The only collateral are the pledged securities.
  • The borrower retains all dividends and upside market appreciation that the securities generate.
  • Funds in three to five business days.
  • Flexible terms at loan maturity. The borrower may renew the loan, possibly refinance, or pay off the loan.

 

 

 

 

 
 

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