Good topic. Any comments regarding using portfolio margin instead of mortgages? I paid off my home loan a few years ago, same with my rental. I'll never have another home loan again and probably not against my rental. My Interactive Brokers rate is ~1.75%, my eTrade is 3% and I can borrow against mutual funds in this account. I only borrow <20% max of the portfolio value (~10% currently).
That is an insane rate, wow. Here's the breakdown from Schwab.
Debit Balance Margin Rate Effective Rate
$0-$24,999.99 Base Rate + 2.00% 8.50%
$25,000-$49,999.99 Base Rate + 1.50% 8.00%
$50,000-$99,999.99 Base Rate + 0.50% 7.00%
$100,000-$249,999.99 Base Rate + 0.375% 6.875%
$250,000-$999,999.99 Rate + 0.25% 6.75%
$1,000,000-$2,499,999.99 Base Rate - 0.25% 6.25%
$2,500,000+ Base Rate - 0.50% 6.00%
I will NOT use my margin instead of a mortgage. What if another 9/11 happens? What if another bank fiasco happens? Nope, not I... I sleep well at night