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Casual Articles - Get A Home Loan Or Refinance Without Liquidating Your Investment Assets
Regardless of your business area, with competition mounting it’s becoming increasingly difficult to stand out and get yourself and your business noticed. One crucial, but often neglected area that you can address immediately is your image as a professional. Here are 6 key ways you can help raise yourself head and shoulders above the rest of the pack and increase your chances of success.1. Dress for SuccessIncredibly, there are those who give little attention to the image they present before potential clients and customers. Any business related contact must be treated as an opportunity to further your business interests. You should be groomed to the point of being precise whenever engaged in business dealings with current or potential clients. Always be sure to be properly attired for business appointments, meetings and conferences. Your business area too should be in presentable condition. How does it look? How does it smell? Clean the floors, empty
For borrowers considering a pledged-asset loan, there’s a simple formula to determine if it makes sense for them. Using annualized interest rates, borrowers should take the expected percentage return on their pledged assets that will remain invested (instead of being liquidated to pay for a down payment on a home) and subtract the interest that will be paid on the amount of the loan that represents the foregone down payment. If the result is positive, then the homeowner should explore a pledged-asset loan as a financing option. But pledged-asset loans shouldn’t be considered as a vehicle for just financing ones personal home. For many fans of pledged-asset loan products, these mortgages have been used as a means to help their adult children get into a home or even assisting their own elderly parents in buying a unit in a retirement community. By simply placing their marketable securities into a lender-approved margin account, many baby boomers and people caught in the so-called sandwich generation (adults with eld
It sounds good: I know you do some relaxation exercise or reading some magazines in your drawing room leisurely. You hear a number of sounds that come from the street outside. Some are attractive while some distract attention! You like it or not, you need to hear all these noises.Nutty business:Now also you here a bell-ring sounds differently, with a unique musical rapidity. You know, it is a special sound coming from a hot selling item on the street: It is the peanuts! Some call it groundnuts too!This ringing noise is coming from the street and that too you know it is from a peanut seller pushing his handcart. The steel spatula generates the sound by hitting on the rims of an iron Chinese woke.Sound Attraction:He has a small stove burning, which heats the sand filled Chinese woke for hot dry frying the peanuts. He pushes the cart, shouts loudly with his special voice and makes the sound just by hitti
Basically, a pledged-asset loan is a loan product in which a mortgage lender allows a homeowner to pledge eligible securities instead of making a cash down payment. In short, after qualifying for the loan, homeowners can finance up to 100 percent of the purchase price of their homes or even acquire a cash-out refinance up to 100 percent of the appraised value of their properties without liquidating their investment assets. There are four main reasons that many homeowners have found pledged-asset loans to be more attractive than making down payments. They include the following.
1. Avoiding the capital gains tax that would come from selling marketable securities
As anyone with an investment portfolio knows, paying a capital gains tax even at the long-term rate of 15 percent can be costly and painful. And, of course, the tax liability can be significantly greater in the case of short-term gains in an investment portfolio. For borrowers seeking to finance a home without paying Uncle Sam any more than is necessary, the pledged-asset loan can be a particularly wise financing choice.
2. An investment portfolio that continues to appreciate and provide income
There’s a popular tale that Einstein was once asked what the most powerful force in the universe was, and his reply, which probably came as no shock to financial planners, was compounding interest. Like Einstein, savvy investors know that there is an opportunity cost to liquidating assets too early. Funds withdrawn from a securities account are, by definition, no longer at play in the market. In a bull market, these opportunity costs can be huge. A pledged-asset loan is often the most sensible choice for borrowers who’d like to finance a home while keeping their investment accounts growing.
3. No requirement for private mortgage insurance
Private mortgage insurance (PMI) is required on mortgage loans where the loan-to-value (loan amount divided by the property’s value) exceeds 80 percent. PMI is expensive, but with a pledged-asset loan, it’s not needed. Borrowers can pledge securities to reduce their effective loan-to-value to a percentage below 80 percent and eliminate the need for PMI.
4. Higher deductible interest payments at tax time
It’s hard to believe, but mortgage interest is one of the last tax deductions available to the average American. Up to a point, the more interest a homeowner pays on his mortgage, the greater the annual interest deduction he can make come tax time. By using the pledged-asset loan product, homeowners maximize their interest costs and thereby get the greatest tax benefit. How pledged-asset loans work
With a pledged-asset loan, homeowners can typically pledge their marketable stocks, bonds, mutual funds, money market accounts and/or certificates of deposit (CDs). However, retirement accounts are not eligible.
Once the borrower and lender agree on the securities to be pledged, the borrower puts his assets into a margin account with a brokerage firm. Some lenders also allow homeowners to trade inside their pledged accounts as long as the borrower maintains the minimum balance required. The value of this account must be equal to the required down payment, plus a margin typically 130-150 percent of the base pledge amount to protect against changes in the market value of the pledged securities. However, the margin may be increased or decreased based on the type of assets a borrower pledges. For example, a lender may not require a margin at all if a borrower pledges cash or cash equivalents, like CDs.
Typically, pledged assets must be securities issued by large, publicly traded companies, have a trading price of at least $5 per share and cannot be shares owned in a retirement account. Finally, the pledge account must be maintained at or above a certain level. If an account falls below the minimum, the lender will call upon the borrower to make up the difference.
Pledged-asset loans by the numbers
A pledged-asset loan can be an excellent mortgage product for the homeowner who expects that his investments and tax savings will be greater than the interest to be paid on the amount of the foregone down payment. Simply put, if a homeowner can borrow mortgage funds at 5.5 percent and keep his investment portfolio intact, earning more than 5.5 percent in that portfolio, then he will have benefited from a positive arbitrage situation.
For borrowers considering a pledged-asset loan, there’s a simple formula to determine if it makes sense for them. Using annualized interest rates, borrowers should take the expected percentage return on their pledged assets that will remain invested (instead of being liquidated to pay for a down payment on a home) and subtract the interest that will be paid on the amount of the loan that represents the foregone down payment. If the result is positive, then the homeowner should explore a pledged-asset loan as a financing option. But pledged-asset loans shouldn’t be considered as a vehicle for just financing ones personal home. For many fans of pledged-asset loan products, these mortgages have been used as a means to help their adult children get into a home or even assisting their own elderly parents in buying a unit in a retirement community. By simply placing their marketable securities into a lender-approved margin account, many baby boomers and people caught in the so-called sandwich generation (adults with eld
In today’s day and age companies can ill afford to take on full time equivalent employees to manage functions which can be easily outsourced. In fact most businesses today, particularly in marketing, can not afford to keep a large marketing staff, but they still need to complete those vital marketing functions. Companies are going to a much more of a virtualized model and the fundamental relationship between employees and employer has changed. Companies are often using a make or buy criteria to decide what they outsource to other companies, and what are core competencies that they need to retain inside their own walls with their own employees.The trend is towards strong rethinking of maintaining a large headcount in the face of stiffer competition, tightened margins and higher specialization of particular skills that are required in order to be effective in the sales and marketing mix. This is where a relationship with an outsourcing company becomes val
1. Avoiding the capital gains tax that would come from selling marketable securities
As anyone with an investment portfolio knows, paying a capital gains tax even at the long-term rate of 15 percent can be costly and painful. And, of course, the tax liability can be significantly greater in the case of short-term gains in an investment portfolio. For borrowers seeking to finance a home without paying Uncle Sam any more than is necessary, the pledged-asset loan can be a particularly wise financing choice.
2. An investment portfolio that continues to appreciate and provide income
There’s a popular tale that Einstein was once asked what the most powerful force in the universe was, and his reply, which probably came as no shock to financial planners, was compounding interest. Like Einstein, savvy investors know that there is an opportunity cost to liquidating assets too early. Funds withdrawn from a securities account are, by definition, no longer at play in the market. In a bull market, these opportunity costs can be huge. A pledged-asset loan is often the most sensible choice for borrowers who’d like to finance a home while keeping their investment accounts growing.
3. No requirement for private mortgage insurance
Private mortgage insurance (PMI) is required on mortgage loans where the loan-to-value (loan amount divided by the property’s value) exceeds 80 percent. PMI is expensive, but with a pledged-asset loan, it’s not needed. Borrowers can pledge securities to reduce their effective loan-to-value to a percentage below 80 percent and eliminate the need for PMI.
4. Higher deductible interest payments at tax time
It’s hard to believe, but mortgage interest is one of the last tax deductions available to the average American. Up to a point, the more interest a homeowner pays on his mortgage, the greater the annual interest deduction he can make come tax time. By using the pledged-asset loan product, homeowners maximize their interest costs and thereby get the greatest tax benefit. How pledged-asset loans work
With a pledged-asset loan, homeowners can typically pledge their marketable stocks, bonds, mutual funds, money market accounts and/or certificates of deposit (CDs). However, retirement accounts are not eligible.
Once the borrower and lender agree on the securities to be pledged, the borrower puts his assets into a margin account with a brokerage firm. Some lenders also allow homeowners to trade inside their pledged accounts as long as the borrower maintains the minimum balance required. The value of this account must be equal to the required down payment, plus a margin typically 130-150 percent of the base pledge amount to protect against changes in the market value of the pledged securities. However, the margin may be increased or decreased based on the type of assets a borrower pledges. For example, a lender may not require a margin at all if a borrower pledges cash or cash equivalents, like CDs.
Typically, pledged assets must be securities issued by large, publicly traded companies, have a trading price of at least $5 per share and cannot be shares owned in a retirement account. Finally, the pledge account must be maintained at or above a certain level. If an account falls below the minimum, the lender will call upon the borrower to make up the difference.
Pledged-asset loans by the numbers
A pledged-asset loan can be an excellent mortgage product for the homeowner who expects that his investments and tax savings will be greater than the interest to be paid on the amount of the foregone down payment. Simply put, if a homeowner can borrow mortgage funds at 5.5 percent and keep his investment portfolio intact, earning more than 5.5 percent in that portfolio, then he will have benefited from a positive arbitrage situation.
For borrowers considering a pledged-asset loan, there’s a simple formula to determine if it makes sense for them. Using annualized interest rates, borrowers should take the expected percentage return on their pledged assets that will remain invested (instead of being liquidated to pay for a down payment on a home) and subtract the interest that will be paid on the amount of the loan that represents the foregone down payment. If the result is positive, then the homeowner should explore a pledged-asset loan as a financing option. But pledged-asset loans shouldn’t be considered as a vehicle for just financing ones personal home. For many fans of pledged-asset loan products, these mortgages have been used as a means to help their adult children get into a home or even assisting their own elderly parents in buying a unit in a retirement community. By simply placing their marketable securities into a lender-approved margin account, many baby boomers and people caught in the so-called sandwich generation (adults with eld
Business cards are an essential tool for any business whether a multi-million pound corporation or small, family business. They allow companies and the individuals within a company to distribute their brand image and vital information about the business to both members of the public and potential business partners and associates.To make sure you get the most out of your business cards here are our top ten tips to ensure your business cards pack that maximum punch needed to get noticed in the busy business world.1. Insert Your Logo on Your Business Card In a Prominent Position.You wouldn’t believe the number of business cards I have come across over the years that have been handed to me without even a business logo on – sure it may have the company credentials, name and the contact information of the person who gave me the card but without the company logo it’s extremely hard when digging through a large spindle of business cards to find who I’
3. No requirement for private mortgage insurance
Private mortgage insurance (PMI) is required on mortgage loans where the loan-to-value (loan amount divided by the property’s value) exceeds 80 percent. PMI is expensive, but with a pledged-asset loan, it’s not needed. Borrowers can pledge securities to reduce their effective loan-to-value to a percentage below 80 percent and eliminate the need for PMI.
4. Higher deductible interest payments at tax time
It’s hard to believe, but mortgage interest is one of the last tax deductions available to the average American. Up to a point, the more interest a homeowner pays on his mortgage, the greater the annual interest deduction he can make come tax time. By using the pledged-asset loan product, homeowners maximize their interest costs and thereby get the greatest tax benefit. How pledged-asset loans work
With a pledged-asset loan, homeowners can typically pledge their marketable stocks, bonds, mutual funds, money market accounts and/or certificates of deposit (CDs). However, retirement accounts are not eligible.
Once the borrower and lender agree on the securities to be pledged, the borrower puts his assets into a margin account with a brokerage firm. Some lenders also allow homeowners to trade inside their pledged accounts as long as the borrower maintains the minimum balance required. The value of this account must be equal to the required down payment, plus a margin typically 130-150 percent of the base pledge amount to protect against changes in the market value of the pledged securities. However, the margin may be increased or decreased based on the type of assets a borrower pledges. For example, a lender may not require a margin at all if a borrower pledges cash or cash equivalents, like CDs.
Typically, pledged assets must be securities issued by large, publicly traded companies, have a trading price of at least $5 per share and cannot be shares owned in a retirement account. Finally, the pledge account must be maintained at or above a certain level. If an account falls below the minimum, the lender will call upon the borrower to make up the difference.
Pledged-asset loans by the numbers
A pledged-asset loan can be an excellent mortgage product for the homeowner who expects that his investments and tax savings will be greater than the interest to be paid on the amount of the foregone down payment. Simply put, if a homeowner can borrow mortgage funds at 5.5 percent and keep his investment portfolio intact, earning more than 5.5 percent in that portfolio, then he will have benefited from a positive arbitrage situation.
For borrowers considering a pledged-asset loan, there’s a simple formula to determine if it makes sense for them. Using annualized interest rates, borrowers should take the expected percentage return on their pledged assets that will remain invested (instead of being liquidated to pay for a down payment on a home) and subtract the interest that will be paid on the amount of the loan that represents the foregone down payment. If the result is positive, then the homeowner should explore a pledged-asset loan as a financing option. But pledged-asset loans shouldn’t be considered as a vehicle for just financing ones personal home. For many fans of pledged-asset loan products, these mortgages have been used as a means to help their adult children get into a home or even assisting their own elderly parents in buying a unit in a retirement community. By simply placing their marketable securities into a lender-approved margin account, many baby boomers and people caught in the so-called sandwich generation (adults with eld
How active women are in terms of their contribution to the overall social-economic changes of a country can be determined in several ways and by the use of different indexes. Some of the most used indexes are employment of women, their position in political and social decision-making, educational level, and “conquest” of new occupations.Serbia, like the most of the Eastern European countries, which are in the process of transition, has appeared in terms of the development of entrepreneurship, especially or the women entrepreneurship. Small or micro businesses became an important actor of growth and employment in these countries, although these potentials had not been completely used. This unusual possibility has especially related to those women who, despite their high education and high participation in labor market, became entrepreneurs twice as little as men. This difference can be noticed in all countries, regardless to the degree of particip
Typically, pledged assets must be securities issued by large, publicly traded companies, have a trading price of at least $5 per share and cannot be shares owned in a retirement account. Finally, the pledge account must be maintained at or above a certain level. If an account falls below the minimum, the lender will call upon the borrower to make up the difference.
Pledged-asset loans by the numbers
A pledged-asset loan can be an excellent mortgage product for the homeowner who expects that his investments and tax savings will be greater than the interest to be paid on the amount of the foregone down payment. Simply put, if a homeowner can borrow mortgage funds at 5.5 percent and keep his investment portfolio intact, earning more than 5.5 percent in that portfolio, then he will have benefited from a positive arbitrage situation.
For borrowers considering a pledged-asset loan, there’s a simple formula to determine if it makes sense for them. Using annualized interest rates, borrowers should take the expected percentage return on their pledged assets that will remain invested (instead of being liquidated to pay for a down payment on a home) and subtract the interest that will be paid on the amount of the loan that represents the foregone down payment. If the result is positive, then the homeowner should explore a pledged-asset loan as a financing option. But pledged-asset loans shouldn’t be considered as a vehicle for just financing ones personal home. For many fans of pledged-asset loan products, these mortgages have been used as a means to help their adult children get into a home or even assisting their own elderly parents in buying a unit in a retirement community. By simply placing their marketable securities into a lender-approved margin account, many baby boomers and people caught in the so-called sandwich generation (adults with eld
Maybe you’ve just graduated college, and after four years of your nose to the books, you’re ready to look up again. Maybe you’ve been working at the same company for several years, and while you enjoy your job there’s really no room for advancement right now and the pay could be better. Whatever the situation, have you ever considered a career as an insurance agent? Insurance agents are as in demand as teachers and doctors. Everyone needs an education, everyone needs medical attention, and, at some point, everyone needs some kind of insurance.When you choose a career as an insurance agent, you’re the front person for your insurance company. Why? Insurance agents are usually the first people both existing and potential customers contact when interested in purchasing insurance from a particular insurance company. By being knowledgeable about your product, friendly, and supportive, not only are you helping your customers, but you’re helping the insuranc
For borrowers considering a pledged-asset loan, there’s a simple formula to determine if it makes sense for them. Using annualized interest rates, borrowers should take the expected percentage return on their pledged assets that will remain invested (instead of being liquidated to pay for a down payment on a home) and subtract the interest that will be paid on the amount of the loan that represents the foregone down payment. If the result is positive, then the homeowner should explore a pledged-asset loan as a financing option. But pledged-asset loans shouldn’t be considered as a vehicle for just financing ones personal home. For many fans of pledged-asset loan products, these mortgages have been used as a means to help their adult children get into a home or even assisting their own elderly parents in buying a unit in a retirement community. By simply placing their marketable securities into a lender-approved margin account, many baby boomers and people caught in the so-called sandwich generation (adults with elderly parents and young children) can provide for their loved ones without liquidating their assets. Best of all, its not necessary for these borrowers to cosign the loan with the persons they are assisting; they only need to help provide the assets that replace the down payments. And remember that some lenders allow the owner of the pledged account to trade inside the account, as long as he maintains the minimum required balance in that account.
Not surprisingly, pledged-asset loans are also popular among homeowners looking for innovative and financially savvy ways to finance a second home or investment property. While these borrowers may not enjoy some of the same tax benefits from a second home as they would from a primary residence, the pledged-asset loan often plays a significant role in acquiring additional investments without having to liquidate assets.
In summary, the pledged-asset loan is a solid financial planning tool that can benefit several different types of sophisticated borrower. It can be a great tool for homebuyers and their financial planners who are seeking the most advantageous times to liquidate assets in order to reduce mortgage debt. It can also offer borrowers the opportunity to postpone liquidating assets until the time that such action fits their overall financial goals. However, pledged-asset loans should not be used for the purpose of over-leveraging the homebuyer. They are merely loan products that will allow homeowners to maximize the benefits of their investment portfolios and be able to more appropriately plan their overall financial strategies.
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