Discussion in 'UPS Discussions' started by brwn4life, Sep 4, 2008.
Did anyone hear about Wachovia's hypo department closing???
Yes, my loan was closed and i didn't recieve notice!!!! I opened a new line with Morgan Stanley, since they had no setup fees. Merrill had a setup fee of $1K.
Are they closing as in requiring immediate repayment or no new distributions?
I am unsure. I just received a notice stating they had closed my loan. I did not have an outstanding balance. However, my friend was told they are closing that department.
Bank of America still does hypo loans. I recently decided to switch my hypo to a margin line with B of A. A hypo was the only way to get a loan on the stock when it was private but now that it's public you can get a less restrictive margin loan. B of A offered me the same interest rate for either and they also have a fixed rate plan which I may also use for a portion of my loan.
With the less-than-stellar performance of our stock since going public, is there actual any gain from getting a hypo loan?
There are alot of benefits for doing a Hypo.
1- I used it for consolidation for high interest debt, specifially car and credit cards.
2 - It helped me buy a new home by allowing me to borrow additional money for a down payment.
3- It also gave me an additional write off on my tax return because my CPA said it is tax friendly, as is mortgage expense.
4- It gave me the additonal write off with a lower interest rate of approx. 3.5% that was below the standard mortgage interest rate at 6%.
5 - I was allowed to keep my A shares; however I chose to convert a portion to B shares to write covered calls in order to bring in additonal income which paid down my hypo loan.
Thank you for the information.
1.-Did you consider selling your stock to pay off your high interest debt?
2.-Did you consider selling stock and putting that money down on the house instead of borrowing money for a down payment?
Seems silly to keep shifting debt around and borrowing if you have the cash, especially since the stock has done nothing for 9 years. Think of all the lost money in interest.
Perhaps he wants the American Dream- a house that will never be paid off; two car payments that will keep increasing when the vehicles are traded every two years; maybe a four-wheeler or two or a boat payment. Not saying that is the case with this poster, but it sure seems to be the way it goes with a lot of people. I never understood having a new fancy home. In this day and age, most people are away from the house more than they are in it. (These are opinions, not facts.)
I just spoke with someone at Wachovia who said that they are still in the hypo loan business for UPSers. They told me that the hypos that were closed were loans they serviced for another bank.
covered calls can easily net you 20% a year.
Thanks for the info.
What percentage of the securities will they loan you?
I have 75% with Wachovia.
Not for long ... Wachovia is getting out of the UPS Stock hyp business.
If you hypo, you still own the stock and still collect the dividends. As long as you don't do crazy, this is probably the cheapest debt you can find. I bought a $475K condo, and hypoed rather than get a regular mortgage. With the fed rates so low right now, it's a much better deal.
Why does everybody keep asking me about a UPS hypo loan?
Probably because of your screen name.
Separate names with a comma.