Hopeton Morrison, Business Columnist

The trading floor of the New York Stock Exchange, as seen on Friday. - File

Dear Hopeton,

I am interested in purchasing stocks on the NYSE. However my stockbroker in Jamaica does not offer trade in US dollar stocks. Could you advise me of a stockbroker or forward me to someone that may be able to assist me?

I am a Jamaican living in another Caribbean island. I have no USA social security number as I have never lived there.

- M.

Dear M,

Alliance Investments Limited offers you an opportunity to trade in US dollar stocks directly. They offer two different platforms for investors to access the US markets and you can access all markets, not just the New York Stock Exchange (NYSE) mentioned by you, but also NASDAQ and the American Stock Exchange (AMEX). None of the other local stockbrokerages offer this type of online trading facility directly into the US markets.

You could also seek to trade directly through online brokerages like Ameritrade, but you need a minimum of US$2,500 to day trade - that is, enter or exit your positions, within a day. So you might want to check Alliance's websites at allianceinvestment.com or alliancetrader.com.

HOME EQUITY LOANS

Dear Hopeton,

I seek your clarification on the subject of mortgages. I am living in New York. I have bought a house in Jamaica from a lady whom I have paid directly, with all legal papers drawn up by a lawyer. She wanted her payment in U.S. dollars.

I am seeking a loan now to do an extension on the property, but I am scared of all the different loans that the banks offer and their high interest rates. The house is now rented and I will not be working when I return to Jamaica in the next couple of months. I only have $500,000 in the bank.

Can you advise me as to which bank has the better loan rate and what type of loan is quicker to access for the purpose of building and doing a boarding house business for girls going to high school in the area? I have just one payment on it. The title is in my name, so the equity would be in my name, right?

I don't have an account at any credit union so would that mean that it is impossible to get a loan there also?

- AB, New York

Dear AB,

You have two options here. You can either take a mortgage on your property or a home equity loan. Monthly mortgage payments will be less than home equity payments as the rates are lower and you will get more time to pay off the loan..

But either option is appropriate and the institution will normally take about 90 days or less to grant the loan.

If you have been a contributor to the NHT, you can access loans there for your expansion at single digit rates which are the best available by far. More details are available at www.nht.gov.jm.

Otherwise mortgage and home equity rates are pretty close to each other across all institutions these days.

You have a choice of any of the four building societies: Jamaica National; Victoria Mutual; First Caribbean; and Scotia. RBTT and NCB banks offer home equity loans.

You can also get equally competitive mortgage and home equity loans from selected credit unions almost immediately on joining as a member.

Because rates are so close among the different institutions, the difference often comes down to which offer the better service. Take the time to find out for yourself. It will be worth it. And yes, your title gives you equity and you can borrow against that.

The Money Advisor is a new interactive column to help you understand the intricacies of financial transactions, markets, credit card management, bank fees, and the everyday things that everyone else pretend they know about, but never really quite understood. Write to Money Advisor, by email to hmorrison@stccu.com, or fax to 922-6223.