Quote:
Originally Posted by MetroMPG
It sounds like you have not read/watched The Big Short!
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If you wanna hear something even more fun you can trade on margin with robinhood if you have a bank account with them. Now stay with me here... Instead of buying a house with 24% down like they want, you can put your down payment money into robin hood, turn on margin (2x your amount) and take that to buy a house. Also, trading on margin money is a 0% loan for a small amount of time (intro rate waived). So congrats, you bought a property with what is basically a balance transfer credit card.
Decent idea for rental properties if you need a month or two to get your ducks in a row. BUT... March did happen so Jesus is watching. lol
If march happened they may have called your margin loan and Dave Ramsey'd you. Kinda.
Theres my contribution. Now get out there and lets crash the economy again. I need some cheap things to buy.
I will say that I have Schwab and am not sure of their margin rates.
Moral of the story: Get a brokerage account now and get rid of that checking account.
Also, margin accounts do not add to your debt to income ratio which they consider when approving loans along with your 20% down payment and your 4 ish percent closing cost.
-guy who thinks he knows something