[Androider]

For mortgages, lenders will entirely or heavily discount RSUs for income calculations.

However not discouraged by that fact, some tech folks are known to instead have taken out regular non-mortgage variable rate loans with their RSUs as collateral. So there are folks, who bought a house "all cash" with loans backed by stock collateral that is now worth much less. Those types of loans also have a double-digit APR, which might have been fine if you thought you could flip your house for 30-100% in the near future. In the current housing marking it is like putting everything on black at a casino, it might work out, but it might be also be a complete catastrophe.

[JumpCrisscross]

> lenders will entirely or heavily discount RSUs for income calculations

Multiple lenders, when I was shopping for a mortgage in October, encouraged me to take a variable-rate ARM with a balloon payment when I mentioned my options. (I declined, opting for a 15-year standard instead.) For the lender, as long as you can refinance in 5 years, the risk is minimal. For a borrower, this structure could easily wipe out one's savings.

[arcticbull]

> Those types of loans also have a double-digit APR, which might have been fine if you tought you could flip your house for 30-100% in the near future.

Nah not all of them. Margin loans were as low as 0.5% APR, and currently not much higher than that.

[brewdad]

Where are you seeing a margin loan rate that low today? Fidelity's current best rate (for over $1MM) is 4.75%. Their base rate is actually 7.85%.

[jmillikin]

https://www.interactivebrokers.com/en/trading/margin-rates.p...

IBKR charges 2.33% base rate, reducing to 1.58% for balances over 1 million USD.

[arcticbull]

Institutional rates are even lower at, for instance, PMR.