Couple Uses 100% Financing to Avoid Asset Liquidation

Gerald called his Merrill Lynch Financial Advisor with a cash-crunch problem. He was currently buying a new home and paying for his daughter's wedding, but the sale of his existing home would not take place until after he had purchased his new home. He wanted to avoid liquidating investments or dipping into his daughter's wedding funds to cover the down payment for his new home.

Gerald’s Financial Advisor recommended the Mortgage 100^® program. With 100% financing, the full price of the new home could be financed, without the added expense of mortgage insurance. Then, when the client's existing home sold, he could pay down the new mortgage without penalties to reduce his monthly interest-only payment.¹

Merrill Lynch's Mortgage 100^®/Parent Power^® programs require the pledge of eligible securities owned by an individual and maintained in a Merrill Lynch, Pierce, Fenner & Smith, Incorporated brokerage account. Member, Securities Investor Protection Corporation (SIPC). Mortgage 100^®/Parent Power^® may not be suitable for everyone and a default on your mortgage could result in both the loss of your home and your securities. Should the value of the securities pledged as collateral decrease below a certain level (as specified within the loan documents), the deposit of additional assets and/or liquidation of assets may be required. Merrill Lynch may liquidate some or all of the securities in the account without contacting you. You are not entitled to an extension of time to meet a collateral call or choose which securities in your account are sold to meet the collateral call. Liquidation may result in adverse tax consequences. Mortgage interest may not be deductible if tax-exempt obligations are pledged as additional collateral. Trading within the brokerage account for the 100% financing programs is subject to restrictions.