I have a decent amount of money saved up, most of it invested in the stock market. Right now I'm thinking about getting a condo / house. I have more than enough in my stock portfolio to simply buy a property in the price range I'm looking at outright, without requiring a mortgage. However, interest rates are so low right now that it makes sense to me to get a mortgage anyways. In addition, there's tax benefits etc.
I'm aware of the general concept of securities backed loans, but the general rates I see from large companies are horrendous (~7-9%). On the other hand, I know I can get ~2% margin loans from Interactive Brokers, though I've never actually used them myself and I'm unsure if I'll run into any complications there. I haven't been able to find a specialized financial instrument to accomplish what I'm looking for.
I feel like there should be a way where I can obtain a mortgage using both the property and part of my stock portfolio as combined collateral, and get a substantially reduced mortgage rate in return.
Is there a way that I can use my stock portfolio to get a lower rate on my mortgage? Ideally, it should be under the margin rate from Interactive Brokers.
- Country: US
- State: Likely WA, FL, TX, or NV