Example: An $800K UPS-based Line of Credit (LeverageLine) at 75% LTV for a Credit Line of $600K
Prepayable Standard Variable Rate (30-Day LIBOR) LeverageLine
- Retail vs ABN Rate
Fixed Four Year Rate
- Retail vs ABN Rate
Fixed vs. Variable APR Rate LeverageLines
The Fixed-Rate LeverageLine:
- Better interest for a fixed term through A. B. Nicholas than direct through any broker or financial advisor.Normally a licensed lender will require you to take all of your $600K line authorization at once, with a Fixed-Rate term loan. You can take as little as only $250K with our A. B. Nicholas LeverageLine even though you are authorized to take more.You’ll be required to pay back your line interest-only with a fixed LeverageLine. You may not prepay your principal with our Fixed-rate LeverageLine. You pay interest-only monthly, so no principal is payable until the actual end of loan (maturity).
- Your fixed-rate line of credit has a maturity date; at maturity, you may pay off the principal OR you may roll it into a new variable rate LeverageLine at no charge.
- You can convert your Fixed-Rate LeverageLine to a standard variable rate LeverageLine at any time at no cost, therefore, at the end of your loan term, if you’d rather not pay all of the principal back at maturity.
Variable-Rate (Standard) LeverageLine
- There is no requirement to take out any particular amount from your line authorization. In our $600K example, you could take $1 or $250K or all $600K. It is entirely up to you. . You can even take zero — nothing — and owe nothing, thereby treating your LeverageLine as a virtual “insurance policy.”
- You are required to pay interest only on what you have drawn, but you can request to put your interest-only required payments into “deferral status” at any time t fold those forgone payments back into the loan principal. So you don’t need to pay anything in any given month if you choose to defer. Simply ask your licensed lender adviser at your lending institution.
- This loan is prepayable: You can pay as much principal as you like at any time.
- Want to pay off your line and exit it? With our standard Variable Rate LeverageLine you can to do so at any time. But with our Fixed-rate LeverageLine, you must wait until your line maturity date arrives to do so. .
- Your standard Variable-Rate line of credit has no maturity date. There is no balloon. There is therefore no set required date for payoff of principal.
- You can convert your standard Variable-Rate LeverageLine into into a Fixed-Rate LeverageLine at any time, at no cost. Simply ask your advisor.
Offer the Leverageline Option
to Your Customers
Whether to invest in real estate, buy a vacation home, or supplement/replace your existing high-interest financing, LeverageLine can be the answer you’ve been looking for. And best of all? There’s no obligation or cost to apply!
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Note please: LeverageLine proceeds cannot be used to purchase more publicly traded, marginable stock, but can be used to purchase the stock of a non-publicly traded business enterprise (acquisition). Please read our disclaimer before proceeding. LeverageLine is not a residential mortgage nor is it intended to act as or replace a residential mortgage.