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How does a stock loan work? - 10/05/10 11:44 AM
A client asked me the other day, "How does a stock loan work?" A stock loan works differently than a mortgage loan, but can serve the same purpose of financing real estate.
Instead of real estate as collateral for the loan, the stock portfolio (bonds and other marketable securities can work also) serves as the collateral. Generally speaking, the amount you can borrow depends on the quality of the portfolio.
For example, a portfolio of highly liquid stocks, such as those listed on the S&P 500, will allow for a higher loan-to-value percentage, than a portfolio of thinly traded penny stocks. … (4 comments)

 
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Phil Caulfield NMLS# 386911 Jumbo and FHA Mortgage Loans California

Burlingame, CA

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