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Well, if you don't have $1m then the house needs to be leveraged too. Interactive Brokers[0] has margin rates lower than my mortgage. I don't think they'd give
by titanomachy 6y ago
Well, if you don't have $1m then the house needs to be leveraged too. Interactive Brokers[0] has margin rates lower than my mortgage. I don't think they'd give you the 10x leverage that you can get on a house though.
[0] https://www.interactivebrokers.com/en/index.php?f=46376 https://www.interactivebrokers.com/en/index.php?f=46376
- nanidin 6y agoYes, but did IB offer rates lower than your mortgage rate over the course of your mortgage? Your margin rate fluctuates daily, and you’re subject to margin calls that could bring the whole house of cards tumbling down. I did not do the math, but it seems like you’d need to simulate a stochastic process to come out with the likelihood of winning in this scenario, similar to the various FIRE calculators out there [0]. [0] https://www.firecalc.com/ https://www.firecalc.com/