What it costs to borrow against your portfolio

Before you borrow. A margin loan is secured by your investments. If they fall, the broker can demand more collateral or sell your holdings without asking, at a bad time. Rates are variable and move with the Fed. Interest on money borrowed to buy taxable investments may be deductible as investment interest if you itemize, up to your net investment income; borrowing to buy a house or pay taxes generally isn't. Ask your tax preparer. Pledged-asset and securities-based lines of credit at banks and wealth managers are usually priced individually and not published.