Marjorie had decided to pay off her daughter’s mortgage as a sort of christening present on the birth of her first grandchild. The cost: $550,000.
Marjorie’s assets: her husband had left her approximately $1M in stocks and bonds via his will; her $750,000 home, with $300,000 remaining on her own mortgage); her savings account ($45,000), and miscellaneous smaller accounts plus a parcel of undeveloped farmland in Utah.
A. B. Nicholas delivered was asked to craft a solution. After examining her case, ABN arranged a $800,000 line of credit against her stock portfolio from a major SIPC/FINRA top-tier bank/brokerage with greatly superior terms and rates. No other asset was liened or considered, nor was her credit score. The interest rate was 1.9% in a revolving line with no set maturity date.
Marjorie took out the $550,000 needed to retire her daughter’s mortgage, then enjoyed repayment that was interest-only required (meaning, pay as much or as little principal back as you wish as long as interest is paid much like a home equity line). This meant that her total monthly payment due each month was only $870/month.
At any time Marjorie can direct her lender to sell enough shares to pay off any outstanding principal. Or she can just pay off the principal on her own schedule when she wants to. Either way, there are no surprises, no balloons, not maturity dates set in stone with the ABN LeverageLine program.
The results as you might imagine were satisfying all around. Marjorie’s daughter used the now-full equity in their home to gain a sizable profit when they sold to move into a bigger home when the daughter’s third child was on the way. Years from now, that nest egg will be parceled out to the three children to help them emerge debt-free from college.
With our amazingly secure, carefully constructed, secure and flexible A. B. Nicholas securities portfolio lending products, you may want to think anew over how to resolve pressing major financial problems or how a stock loan can fit neatly into helping you meet your objectives within your particular financial plan.
Our job at ABN? To get you the perfect stock loan for the task you have before you. It’s what we ‘re fully committed to. It’s all we do.
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