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Mortgages Will Soon Be Collateralized By Amazon Stock: WSJ
If you work for Amazon and you have some stock but not a home, there's good news: You'll soon be able to pledge your shares as collateral for cash, which can then be used for a downpayment.
So, you get to keep your stake in the company, and you get a house. The arrangement, made possible by online mortgage lender Better.com, was detailed Tuesday by The Wall Street Journal.
As regular readers will attest, I'm a staunch advocate for equality of opportunity, but I'm admittedly cautious on the ide
The surcharge buys puts on the pledged shares, 25 bp if AMZN RSU is only used for the down pymt, 250 bp if the entire loan is collateralized with the RSU shares – guessing its something like that. Nice idea.
Looks to me like a swell away to avoid paying taxes on what you are using for a downpayment.
Am I wrong?