Will a Down Payment Hurt or Help You?

In today's market, the old rule of thumb about making a traditional down payment of at least 20 percent has changed. Your smartest financial choice may be no down payment at all -- with 100% financing from Merrill Lynch.

Before you liquidate assets for your down payment, compare the after-tax expected return on your investments versus the cost of financing your down payment over the time you plan to live in your home. 100% financing could be an excellent choice for you, if you expect your after-tax investment return to exceed your financing costs.

Merrill Lynch has two innovative 100% financing programs:

The Mortgage 100^® program is for those who can pledge eligible securities as collateral to secure a portion of the loan.

The Parent Power^® program is for homebuyers who lack enough eligible securities, but have parents or sponsors who can pledge eligible securities for them.

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.

Flexible First^SM, another innovative Merrill Lynch program, can also help you put down less than 20 percent on your home and avoid mortgage insurance.

Learn how a couple used 100% financing to avoid asset liquidation.