Your borrowing power is primarily determined by your blended Loan To Value amount or 50% of your portfolio value, whichever is lower.
Your borrowing power can increase above 50% of your portfolio value as your assets at Frec appreciate and/or if you transfer assets that have appreciated from an external margin account.
Example 1:
A customer transfers $100,000 worth of diversified securities with a blended LTV of 75%.
Description | Amount |
Portfolio Value (securities only) | $100,000 |
Blended LTV amount | $75,000 |
50% of Portfolio | $50,000 |
Maximum Borrow Amount | $50,000 |
Example 2:
A customer transfers $100,000 worth of diversified securities with a blended LTV of 40%.
Description | Amount |
Portfolio Value (securities only) | $100,000 |
Blended LTV amount | $40,000 |
50% of Portfolio | $50,000 |
Maximum Borrow Amount | $40,000 |
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