No. of Recommendations: 5
Lots of "what ifs" involved in asset based mortgages.Any debt, really. It's just a tool that you need to understand and hedge against the risks. My limited understanding of Fidelity's asset based mortgage is that the loan is still secured by the property, not your assets. Your assets are used to calculate your ability to qualify for the loan, but payment comes from wherever you want. Just like there is no guarantee that you will have your paycheck past the time needed to qualify, could lose your job right after you close on your house, there is no guarantee of where your assets will land down the road. Losing your job doesn't result in the bank calling the mortgage, failure to pay does, and I suspect the same is the case for the asset based qualification for a mortgage. I don't believe it is a margin type of loan with ability to be called. And yes, the rate was fixed...at least the ones we briefly looked at. We did not buy the property that had us briefly looking into it, so we really didn't delve into it deeply. Here's the link:
https://fidresi.com/loanoption/asset_loan.cfmWe in fact recently sold our home to a retiree who seemed to have gotten something like the above, though obviously he did not share the details with us. 90% loan to value and they didn't even require an appraisal. Pretty darned sure, however, that he has significantly more assets than we do. Took roughly 4 weeks to close on the sale.
Please understand that I am only presenting an idea for people to look into and do due diligence on. It is possible to get a mortgage without a paycheck.
IP
