In My Portfolio.
Q: immediately take out a Home Equity Loan against my property as soon as I close and pay off my car and use the rest to pay off the variable rate credit line in my portfolio. what equity? You owe 100% on the property. Using margin on securities can get you into trouble. If a large part of the portfolio against which you are borrowing is in variable investments like stocks, then you face additional risk. And I am not giving investment advice, but those cheap stocks keep getting cheaper.
A: It took me a while to get it. It is rare for a lender to allow a borrower to borrow the down payment. That threw me off. I imagine you have told the lender about it, right? And yes, you will have equity, but like you said it is just different debt. So your margin loan is at 7.75%? Is your portfolio earning more than that? Have you compared the margin loan versus two other options?: 1- Liquidate and put down 20% cash? 2- Get a normal second mortgage. The rate is higher, but (very likely) tax deductible, and you avoid pmi. Remember to estimate the tax implications in the interest rates.