Subject: Re: Second order effects - asset depletion loans
basing my ability to get a mortgage on my investment accounts or a percentage of them would seem to be risky in the case of a falling market. I would assume that if the accounts fell below a certain level that the mortgage would be called
I looked into one of these with Merrill Lynch a long time ago.
The documents explicitly said that if the investment account dropped below $XX they would call the loan.
Insanely risky. The interest was the going rate, but liquidation would be like a margin loan.