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Does anyone know of a financial institution offering mortgage loans where the borrower pledges a stock portfolio as collateral instead of the traditional cash down payment?

This strategy allows one to use their mortgage as an asset rather than a liability. You enjoy potential double increases in value: real estate and equities. Meanwhile 100% of the monthly payment is tax deductible! (Great for folks in a high tax bracket.)

I've written to E*Trade with no response.

Merrill Lynch offers a scheme called "Mortgage 100", but it requires you to open a "full service" brokerage account (CMA) with a minimum $2,000 annual fee (ouch).

Is Merrill the ONLY institution with such a forward thinking way to purchase real estate by leveraging one's stock portfolio? I hope not...

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