I understand this statement in terms of margin accounts and the stock market:
“With 20% down, you’re leveraged 5X-to-1. Your gains and losses are magnified 5 times. With a stocks and margin, you’re leveraged 2X to 1. Without margin, it’s a straight 1 to 1.”
I don’t understand how 20% down causes magnification in the housing market (5x). Could you please explain in more detail?
