The difference is that a margin loan is variable and you can get a fixed mortgage in the 2% range. Margin rates could easily go up to 10% + in the near future as inflation skyrockets and interest rates do the same. So I hear you. At todays fixed interest rates it will likely almost be considered a free loan in the next 5 years or so. Those who have variable home loans are the ones who should jump ship while they can.
Often times it comes down to the interest rate. I paid cash for my first home when interest rates were moderate to high. I sold that house this past March and bought another house. I could have paid it off, still can anytime I want, but at a 2.35% mortgage rate via a VA loan that doesn’t make sense to me. The General consensus is that interest rates will soon go up across the board along with inflation but that 2.35% interest rate is fixed and can never change. If my rate was 4-5% I would think much differently, but at 2.35% it is a no brainer whether I itemize or not. So the one answer solution doesn’t apply. It all depends.
Comments:
The difference is that a margin loan is variable and you can get a fixed mortgage in the 2% range. Margin rates could easily go up to 10% + in the near future as inflation skyrockets and interest rates do the same. So I hear you. At todays fixed interest rates it will likely almost be considered a free loan in the next 5 years or so. Those who have variable home loans are the ones who should jump ship while they can.
Post: Should you prepay a mortgage?
Link to comment from July 17, 2021
Often times it comes down to the interest rate. I paid cash for my first home when interest rates were moderate to high. I sold that house this past March and bought another house. I could have paid it off, still can anytime I want, but at a 2.35% mortgage rate via a VA loan that doesn’t make sense to me. The General consensus is that interest rates will soon go up across the board along with inflation but that 2.35% interest rate is fixed and can never change. If my rate was 4-5% I would think much differently, but at 2.35% it is a no brainer whether I itemize or not. So the one answer solution doesn’t apply. It all depends.
Post: Should you prepay a mortgage?
Link to comment from July 17, 2021