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> The reason is that when you have a mortgage, you're making a highly leveraged investment. You can lever up an equity portfolio as well. Moreover, the going
by fairity 5y ago
> The reason is that when you have a mortgage, you're making a highly leveraged investment.
You can lever up an equity portfolio as well. Moreover, the going interest rate for a margin loan is only 1-2% (less than the cost of a mortgage).
- fshbbdssbbgdd 5y agoAlthough mortgages have some big advantages: 1. Interest rate can be fixed for 30 years. 2. Interest is tax-deductible. 3. No margin call. If the price drops, you can wait until it recovers. There’s really nothing similar available to the average person for other investments.
- jjeaff 5y agoIs that the going rate for a margin loan? I have only found IBKR to have rates that low.