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Using stocks as collateral for a down payment

Hello,

We are planning to buy a 500,000 home. We have 100,000 in stocks we could sell for the down payment. We’d have to pay capital gains if we do and lose any future market growth.

However, our bank is allowing us to use the stocks as collateral and avoid PMI. They would still be invested but I can’t sell them until the balance is paid down.

So we’d put nothing down, with a full 500,000 loan.

From what I understand this would mean a higher monthly payment, but keeping myself invested in the market while avoiding taxes.

Good idea? Or am I gonna lose out on interest because the loan amount is higher

Edit: pledged asset loan

submitted by /u/trashpandarevolution
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/196ec2i/using_stocks_as_collateral_for_a_down_payment/
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