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Personal Finance (Not Investing) • Pledged Asset Loan for Home down payment

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"I noticed the interest rate is SOFR + 3.90% which can be 9%. Is this rate competitive?"

I don't think so. I think +2 or so, or maybe as much as +3 is what I was quoted elsewhere a couple of years ago and what I've seen advertised since then. I have a line at a different company, but I've never used it.

We are buying a small beach cottage from friends in September when their large beach house is ready. I may use the pledged line for 30% of the purchase price in order to delay taking some LTCG until 2025. We have most of the cash we need, so maybe we'll bite the bullet and sell some things. I hate owing people money and paying interest. I learned it from my parents and others who grew up during the depression.

Statistics: Posted by andypanda — Mon Jun 24, 2024 5:53 am — Replies 3 — Views 285



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