Hypo Loan

Discussion in 'UPS Discussions' started by brwn4life, Sep 4, 2008.

  1. brwn4life

    brwn4life New Member

    Did anyone hear about Wachovia's hypo department closing???
  2. grd22mgr

    grd22mgr New Member

    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.
  3. pemanager

    pemanager Member

    Are they closing as in requiring immediate repayment or no new distributions?
  4. brwn4life

    brwn4life New Member

    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.
  5. retired

    retired Guest

    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.
  6. With the less-than-stellar performance of our stock since going public, is there actual any gain from getting a hypo loan?
  7. grd22mgr

    grd22mgr New Member

    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.
  8. brwn4life

    brwn4life New Member

    Thank you for the information.
  9. pkg-king

    pkg-king New Member

    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.
  10. What'dyabringmetoday???

    What'dyabringmetoday??? Well-Known Member

    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.)
  11. FYBIL

    FYBIL New Member

    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.
  12. 1989

    1989 Well-Known Member

    covered calls can easily net you 20% a year.
  13. pemanager

    pemanager Member


    Thanks for the info.
  14. tieguy

    tieguy Banned

    What percentage of the securities will they loan you?
  15. pemanager

    pemanager Member

    I have 75% with Wachovia.
  16. Catatonic

    Catatonic Nine Lives

    Not for long ... Wachovia is getting out of the UPS Stock hyp business.
  17. TechGrrl

    TechGrrl Space Cadet

    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.
  18. 855UPSHYPO

    855UPSHYPO New Member

    Why does everybody keep asking me about a UPS hypo loan?
  19. barnyard

    barnyard KTM rider Staff Member

    Probably because of your screen name.