Mortgage Basics

The Many Benefits and Reasons to Consider a Pledged-Asset Mortgage

Here are some of the many advantages available with a Pledged Asset Mortgages:

• Elimination of need for a cash down payment.
  
• Rates comparable to "20% down payment" financing, even with 100% financing.
  
• 100% financing available with No Private Mortgage Insurance (PMI) in most cases.
  
• No pre-payment penalties.
  
• Cash out and interest only programs available up to 100% of appraised home value.
  
• Possible creation of a mortgage interest deduction by pledging securities as collateral.
  
• Defers capital gains/losses incurred with selling securities versus pledging as collateral.
  
• Both your homes value and pledged assets could possibly appreciate in value together.
  
• Allows holders of eligible securities to pledge on behalf of other family members without the need to co-sign a mortgage or "gifting" assets.
  
• You need a solution other than gifting cash to family member for a down payment.
  
• Pledging can keep cash on hand available for other investments or debt management.
  
• Fixed to adjustable and fully adjustable ARM programs available.

Call Pledged Asset Mortgage consultant now for more details at 805-494-0300

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