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.
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.
What percentage of the securities will they loan you?
I have 75% with Wachovia.
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.