Margin account loans are a little different from a loan or line of credit from other lenders. And, in some situations, it might be much easier and less expensive than other loan options.  "It is free to set up a margin loan, which is not the case when you take out a mortgage, where you have loan fees, sometimes have to pay points, and often have to pay for an appraisal of the house," says Erin Scannell, a private wealth advisor with Ameriprise Financial. "None of these costs exist with a margin loan." Margin loans also generally don't require a credit check or upfront fees, and they may have lower interest rates than credit cards or unsecured personal loans. However, the rates are often variable — based on a broker's base rate, plus a margin rate that depends on your outstanding balance.  There also isn't a set repayment period with margin loans, and some borrowers will wait to pay off the loan until they sell the assets that they bought using the money. However, interest will continue to accrue while the loan is outstanding.