Alternative Mortgage Financing

05/02/2008 – 5:42 pm

How many of you out there have sold your home about 2 or 3 years ago for huge profits waiting to buy in again as the market corrects?  If this is you, read on as this can be some helpful information that may save you money or even set a path for a better future.


Being in this situation myself, my goal was to invest this money so that when I was ready to buy my new home I would have enough money for a down payment that would make my monthly payment very small or if lucky have enough to pay for it in cash.


What was I thinking!  This would actually go against everything I believed in. For me leverage is key in getting ahead.  One example of this would be the “Tale of Two Brothers”.  


Only recently have I been introduced to a new way of mortgaging a home.  It’s called Mortgage 100 by Merrill Lynch.  Mortgage 100 is a 100% home financing program that allows you to pledge eligible securities instead of liquidating assets to make a cash down payment.


What’s great about this program is that you can keep yourself fully invested by leveraging eligible assets and holding them in a pledge account.  You can also continue to have the potential to earn dividends, interest and/or capital appreciation.  By keeping assets invested for long-term growth you can have the potential to increase your net worth.


Other perks of using this program is no mortgage insurance even at 100%, zero points to reduce your total out-of-pocket costs and no additional fees or higher interest rates.


If this type of financing does not fit your needs there is always the more traditional way.  Here is a link to a LENDER that I used a few times.  Great rates, great service, and the people are very easy to work with.


Good Luck!


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