Fact Check: Margin Loans vs. Mortgage

"Margin loans have better rates than a mortgage."

Written by Aaron R. Winston
Last Updated: December 15, 2023 2:30am CST

Claim: Margin loans have better rates than a mortgage.

Claimed By: Forbes

Fact Check: From a historical perspective, the claim by author and wealth manager Aviva Pinto, CDFA, CDA, in a Forbes article that a margin loan has a lower interest rate than a mortgage, is only true part of the time. The statement is mostly true and not entirely factual because margin loan rates have been higher than that of a mortgage.

In fact, margin interest rates currently (2023) are set at significantly higher percentages than mortgage loan rates (influenced by the U.S. Federal Reserve).

Moreover, this statement is risky to make as, ultimately, brokerage firms decide what to set their margin rates (and can shave off different percentage fractions), which fluctuate monthly.

Also, margin rates can’t be locked in, unlike a long-term mortgage.

In summary, although margin interest rates are generally less than mortgage rates, that is not always the case, which makes the claim posted by Forbes on behalf of a Forbes Council member mostly true.

Regardless, this distinction about a financial product is critical to make for the sake of complete accuracy.

Fact Check By: Express Legal Funding

About the Author

Author profile
Strategy Director at Express Legal Funding | Author Website

Aaron Winston is the Strategy Director of Express Legal Funding. As "The Legal Funding Expert," Aaron has more than ten years of experience in the consumer finance industry. Most of which was as a consultant to a top financial advisory firm, managing 400+ million USD in client wealth. He is recognized as an expert author and researcher across multiple SEO industries.
Aaron Winston earned his title "The Legal Funding Expert" through authoritative articles and blog posts about legal funding. He specializes in expert content writing for pre-settlement funding and law firm blogs.
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Aaron Winston is the author of A Word For The Wise. A Warning For The Stupid. Canons of Conduct, which is a book in poetry format. It consists of 35 unique canons. The book was published in 2023.
He keeps an academic approach to business that improves the consumer's well-being. In early 2022, Aaron gained the Search Engine Optimization and the Google Ads LinkedIn skills assessment badges. He placed in the top 5% of those who took the SEO skills test assessment.
Aaron's company slogans and lawsuit funding company name are registered trademarks of the United States Patent and Trademark Office. He has gained positive notoriety via interviews and case studies, which are a byproduct of his successes. Aaron R. Winston was featured in a smith.ai interview (2021) and a company growth case study (2022).
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Aaron was born in Lubbock, TX, where he spent the first eight years of his life. Aaron attended Akiba Academy of Dallas, TX.

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