Footnotes:
1 The Mortgage Reports, Why is Housing Inventory So Low? Understanding the U.S. Housing Shortage, by Peter Warden, Published Feb 27, 2024, https://themortgagereports.com/110662/why-is-there-a-housing-shortage
2 National Association of Realtors, The Share of All Cash Buyers Highest Since 2014 at 32% of All Buyers, by Jessica Lautz, Published Feb 23, 2024, https://www.nar.realtor/blogs/economists-outlook/the-share-of-all-cash-buyers-highest-since-2014-at-32-of-all-buyers
3 Federal Reserve Bank of St. Louis, 30-Year Fixed Rate Mortgage Average in the United States, Published May 9, 2024, https://fred.stlouisfed.org/series/MORTGAGE30US
Disclosures:
Borrowing against securities may not be suitable for everyone. You should be aware that there are risks associated with a securities based loan, including possible maintenance calls on short notice, and that market conditions can magnify any potential for loss.
Residential mortgage loans/home equity lines of credit are offered by Morgan Stanley Private Bank, National Association, an affiliate of Morgan Stanley Smith Barney LLC. With the exception of the pledged-asset feature, an investment relationship with Morgan Stanley Smith Barney LLC does not have to be established or maintained to obtain the residential mortgage products offered by Morgan Stanley Private Bank, National Association. All residential mortgage loans/home equity lines of credit are subject to the underwriting standards and independent approval of Morgan Stanley Private Bank, National Association. Rates, terms, and programs are subject to change without notice. Residential mortgage loans/home equity lines of credit may not be available in all states; not available in Guam, Puerto Rico and the U.S. Virgin Islands. Other restrictions may apply. The information contained herein should not be construed as a commitment to lend. Morgan Stanley Private Bank, National Association is an Equal Housing Lender and Member FDIC that is primarily regulated by the Office of the Comptroller of the Currency. Nationwide Mortgage Licensing System Unique Identifier #663185. The proceeds from a residential mortgage loan (including draws and advances from a home equity line of credit) are not permitted to be used to purchase, trade, or carry eligible margin stock; repay margin debt that was used to purchase, trade, or carry margin stock; or to make payments on any amounts owed under the note, loan agreement, or loan security agreement; and cannot be deposited into a Morgan Stanley Smith Barney LLC or other brokerage account.
This material has been prepared for informational purposes only. It does not provide individually tailored investment advice. It has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. Morgan Stanley Smith Barney LLC (“Morgan Stanley”) recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a Morgan Stanley Financial Advisor. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.
Relationship-based pricing offered by Morgan Stanley Private Bank, National Association is based on the value of clients’, or their immediate family members’ (i.e., grandparents, parents, children and siblings) eligible assets (collectively “Household Assets”) held within accounts at Morgan Stanley Smith Barney LLC. To be eligible for relationship-based pricing, Household Assets must be maintained within appropriate eligible accounts prior to the closing date of the residential mortgage loan. Relationship-based pricing is not available on conforming loans.
Through the pledged-asset feature offered by Morgan Stanley Private Bank, National Association, the applicant(s) or third party pledgor (collectively "Client") may be able to pledge eligible securities in lieu of a 21 full or partial cash down payment or in connection with a refinance mortgage loan. To be eligible for the pledged-asset feature a Client must have a brokerage account at Morgan Stanley Smith Barney LLC. If the value of the pledged securities in the account drops below the agreed-upon level stated in the loan documents, a Client may be required to deposit additional securities or other collateral (such as cash) to stay in compliance with the terms of the mortgage loan. If a Client does not deposit additional securities or other collateral, the Client's pledged securities may be sold to satisfy the Client's obligation, and the Client will not be entitled to choose which assets will be sold. Borrowing against securities may not be appropriate for everyone. In deciding whether the pledged-asset feature is appropriate, a Client should consider, among other things, the degree to which they are comfortable subjecting their investment in a home to the fluctuations of the securities market. The pledged-asset feature is not available in all states. Other restrictions may apply.
Investments in mortgage-and/or asset-backed securities involve risks, including the risk of prepayment, which may affect the overall return of the investment. Only select deposit products are guaranteed by the Federal Deposit Insurance Corporation, and the credit quality of a particular security or group of securities does not ensure the stability or safety of the overall portfolio.
Morgan Stanley Private Bank, National Association is based on the value of clients’, or their immediate family members’ (i.e., grandparents, parents, children and siblings) eligible assets (collectively “Household Assets”) held within accounts at Morgan Stanley Smith Barney LLC. To be eligible for relationship-based pricing, Household Assets must be maintained within appropriate eligible accounts prior to the closing date of the residential mortgage loan. Relationship-based pricing is not available on conforming loans.
The proceeds from a mortgage or non-purpose securities-based loan products may not be used to purchase, trade or carry margin stock or securities or repay margin debt, and cannot be deposited into a Morgan Stanley Smith Barney LLC or other brokerage account.
Morgan Stanley Smith Barney LLC and its affiliates and their employees (including Financial Advisors and Private Wealth Advisors) are not in the business of providing tax or legal advice. These materials and any statements contained herein should not be construed as tax or legal advice. Individuals should consult their personal tax advisor or attorney for matters involving taxation and tax planning and their attorney for matters involving personal trusts and estate planning.
Morgan Stanley Smith Barney LLC is a registered Broker/Dealer, Member SIPC, and not a bank. Where appropriate, Morgan Stanley Smith Barney LLC has entered into arrangements with banks and other third parties to assist in offering certain banking related products and services.
Investment, insurance and annuity products offered through Morgan Stanley Smith Barney LLC are: NOT FDIC INSURED | MAY LOSE VALUE | NOT BANK GUARANTEED | NOT A BANK DEPOSIT | NOT INSURED BY ANY FEDERAL GOVERNMENT
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