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303-931-2773 303-875-6420 |
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Program Comparison
SBL vs. SBLOC |
|
Benefits |
SBL Securities-Based Loan |
SBLOC Securities-Based Line of Credit |
| Type of Loan | Loan with Fixed Term | Revolving Line of Credit |
| Loan Payment Structure | Interest-Only payments | Interest-Only payments |
| Interest Rates | Fixed 2.5% to 4.5% | ARM 3.00% + |
| Fixed 3.75% + | ||
| Loan Payment Frequency | Quarterly | Monthly |
| Taxable Event | No | No |
| Pre-Payment Penalty | Pre-Payment not allowed | ARM - No |
| Fixed Rate - Yes | ||
| Lock-Out Period | Yes-term of the loan | No |
| Assets Must Be Moved | Yes-transferred to lenders name | Yes-but stay in clients name |
| Assets Stay in Clients Name and Control | No | Yes |
| Client May Trade or Sell Securities in the account | No | Yes |
| Borrower Receives Credit For Dividends on Securities | Yes | Yes |
| Current Liens on Portfolio May Be Paid With Proceeds of New Loan. | No | Yes |
| Borrower Receives Upside Appreciation | Yes - At loan payoff | Yes |
| SIPC Insured Account | No | Yes |
| Credit Check | None | None |
| Income Verification | None | None |
| Personal Recourse Loan | No | No |
| Minimum Asset Value | Penney Stocks OK* | $5.00 per share* |
| Yearly Maintenance Fee | None | None |
| Minimum Loan Amount | $100,000 | $100,000 |
| Maximum Loan Amount | No Limit | Limitations |
| Quick Funding | Yes | Yes |
*Minimum trading volume of $50,000 day is required.
If you have any questions about what qualifies
please
contact us.
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