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Just caught this new product - your thoughts and insights are greatly appreciated..... copy and pasted...
My Equity Freedom Securities (MEFS)
MEFS begs the question, why sell in a down market if you don’t have to? MEFS loans go up to 80% of the value of your stock with no credit or income requirements. Interest rates offered are below market, between 3‐5% fixed. MEFS allows people to protect their stock portfolio and get much needed cash in as little as 5 to 7 days. This new securities‐based loan program gives consumers the power to leverage their securities portfolio and offers them protection from market declines without selling their assets. With MEFS, consumers continue to reap the rewards of any appreciation and dividends generated by the pledged securities. Eligible securities include stocks, bonds, penny stocks, mutual funds and foreign exchanges.
MEFS empowers the consumer with key benefits, including: the borrower will keep all market appreciation and dividends; the loan is a no recourse loan, meaning that the borrower can walk away at any time and keep the loan proceeds; at the end of the term the loan can be paid off, refinanced or renewed.
Here is how MEFS compare with a margin loan:
Typical Margin loan:
Cons:
50% max LTV
6-9% variable rate
Possibility of margin call (stock drops below 80% of borrowed amount)
Pros:
No term, can pay off anytime
Usually lends through your large brokerage account
MEFS:
Pros:
up to 80% LTV
3-5% fix rated
Non-recourse (can walk away if stock drops below 80% of borrowed value)
Cons:
Fix term (3, 5, 7 yrs) sometimes 2 years
My Equity Freedom Securities (MEFS)
MEFS begs the question, why sell in a down market if you don’t have to? MEFS loans go up to 80% of the value of your stock with no credit or income requirements. Interest rates offered are below market, between 3‐5% fixed. MEFS allows people to protect their stock portfolio and get much needed cash in as little as 5 to 7 days. This new securities‐based loan program gives consumers the power to leverage their securities portfolio and offers them protection from market declines without selling their assets. With MEFS, consumers continue to reap the rewards of any appreciation and dividends generated by the pledged securities. Eligible securities include stocks, bonds, penny stocks, mutual funds and foreign exchanges.
MEFS empowers the consumer with key benefits, including: the borrower will keep all market appreciation and dividends; the loan is a no recourse loan, meaning that the borrower can walk away at any time and keep the loan proceeds; at the end of the term the loan can be paid off, refinanced or renewed.
Here is how MEFS compare with a margin loan:
Typical Margin loan:
Cons:
50% max LTV
6-9% variable rate
Possibility of margin call (stock drops below 80% of borrowed amount)
Pros:
No term, can pay off anytime
Usually lends through your large brokerage account
MEFS:
Pros:
up to 80% LTV
3-5% fix rated
Non-recourse (can walk away if stock drops below 80% of borrowed value)
Cons:
Fix term (3, 5, 7 yrs) sometimes 2 years