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No like I said they are fundamentally different. In a normal mortgage the bank cannot take your house if you make payments. With margin they can force you to se
by thebean11 6y ago
No like I said they are fundamentally different. In a normal mortgage the bank cannot take your house if you make payments. With margin they can force you to sell if your account becomes too risky (usually happens because your positions lost value, but could also happen in cases like these where an investment is deemed to have a high probability of losing value). They can do this even if you are paying the interest on your margin on time.
- baybal2 6y ago> In a normal mortgage the bank cannot take your house if you make payments. Depending on a loan agreement... It can The last time this has happened en masse was as recently as 12 years ago. Since then, people started reading loan agreements a bit more carefully, hence the decline in the number of banks demanding completely unconditional recall clauses.