I'm planning to close on a home in WA state in two months and am working on finding ways to pay a 20% down payment which is 250K. I currently have 100k in cash, but I also have index funds worth 250k in my Fidelity personal brokerage. I'm considering taking a Pledged Asset Loan (PAL) to borrow the remaining 150K needed for the full 20% down payment. Is this a good idea as index may not decline in value which can fall below my borrowed loan? At Charles Schwab, I noticed the interest rate is SOFR + 3.90% which can be 9%. Is this rate competitive? I also considered a 401K loan; however, I can only borrow $50,000. While it's beneficial that I would pay interest back to my own account, I would miss out on potential market gains. Please advise as this is my first home and want to be cautious. The reason I wanted to go with 20% down is because, the jumbo loan would get me 5.8ish interest rate. Thank you.
Statistics: Posted by rolex4 — Sun Jun 23, 2024 11:56 pm — Replies 0 — Views 50