Why Would Someone Want To Get A Pledged Asset Mortgage Loan?

 I will explain to you why someone would want to get a pledged asset mortgage loan with an example.

Bill Buyer likes his investments. He believes that the return on these investments will benefit him more than liquidating them for the down payment into the property. http://www.xdr.com/dash/blog/index.php?m=09&y=11&entry=entry110909-103600

Bill also likes to buy and sell within his asset account. He would lose the liquidity available to him to trade if he liquidates these funds for the down payment.

Fortunately, Bill has done well with his investments and has enjoyed a nice return. He realizes that he may have to pay a capital gains tax (he will check with his CPA of course as I am sure any of the readers of this article will) if he liquidates some or all of his investments for the down payment.

Finally, Bill has a nice monthly income and can afford the http://en.wikipedia.org/wiki/William_F._Buckley,_Jr.higher payment. He may be able to increase his mortgage interest deduction (he will check with his CPA as well as the readers of this article should) with the higher loan amount a pledged asset mortgage loan offers.

The reasons above have led Bill Buyer to the conclusion that a pledged asset mortgage makes sense for him. 

This program is not for the novice. It is for sophisticated borrowers who understands the risks that are involved. Before applying for this mortgage plan it would be very wise to speak to a tax preparer and financial advisor to help determine if this is the most suitable program. 

Do you need help making an effective financial decision? Call or text me at (650) 222-0386, or e-mail me.

 
 

 

 

 

 

 

      

 

 Opes Advisors is licensed by the CA Department of Business Oversight 4150089, CA Bureau of Real Estate 01458652, Oregon ML -4902, Washington CL-1178435 and NMLS 235584. Equal Opportunity Lender. Opes Advisors is a registered investment advisor with the Securities and Exchange Commission (SEC). ©2014 Opes Advisors, Inc. All rights reserved.              

Phil Caulfield
411 Borel Avenue #320
San Mateo
CA
94010

(650) 222-0386

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Comment balloon 0 commentsPhil Caulfield • April 20 2014 08:04AM

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