Need advice using non-retirement brokerage funds to potentially purchase home

In all seriousness, what do you want to hear here?

Some will choose one side. Others will choose opposite.

It reads like you want to buy the place, so buy it anyway you're comfortable. Don't make decisions solely on interest rates, either earned or owned, because there's benefits on both sides, as well as negatives.

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I personally would sell the stocks and do the work now to make it the home you want. When you sell your current home you can refund the account. I don’t want to pay the bank 6.5% if I have cash.

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You’d rather the government have 20% of your gains?

Correct. I will say most of the stocks I have will be subject to long term taxes and not short term

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If I understand correctly, this is a brokerage account so there will be no tax implications, correct?

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It’ll be subject to either 15% or 20% depending on the OP’s income level.

I’d sell any stocks that have little to no gain and use that and any other cash savings to mortgage the house and once my old house sold use the proceeds to pay off the mortgage. The market isn’t hot enough to get banged for 15% taxes to make a cash offer.

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So I'm just supposed to hold the stocks till I die? I will have to sell them at some point

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1. You can structure your income in retirement to minimize tax liability.

2. You’re taking a 10% penalty on this transaction to needlessly avoid taking out a mortgage

You obviously haven’t done this before or are bad at math. Most of what you get back in a stock sale is the original money you put in the stock which is not subject to taxes. Also long term capital gains is 15% and not 20%. Unless he has a bunch of 10x baggers, he’s not paying 15% on the whole $200,000, just gains. He WILL pay 6.5% on the whole mortgage PLUS closing costs.

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You obviously haven’t done this before or are bad at math. Most of what you get back in a stock sale is the original money you put in the stock which is not subject to taxes. Also long term capital gains is 15% and not 20%. Unless he has a bunch of 10x baggers, he’s not paying 15% on the whole $200,000, just gains. He WILL pay 6.5% on the whole mortgage PLUS closing costs.

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SMH

I'm just trying to understand your logic of how I will ever avoid paying 15% on the stock sells I own in this account

I had similar situation. Instead of selling shares, I borrowed against them using a securities backed line of credit w my brokerage.
The negotiated rate is 1.55% +SOFR (currently ~5.8% up from when I took it out). I borrowed enough for 20% down payment and took out a mortgage (sub 4%).
That way, my investments are still fully deployed in stock market not tied up in home equity. (Harder/more expensive to access and reduces ROI on home)
Mortgage rates are higher now so you have a stronger case for avoiding mortgage than I did.
I'd be careful not to trigger 20% LTCG rate and possibly +3.8 NIIT by liquidating large sum in 1 tax year. Makes even less sense if you are gonna pay higher tax now just to turn arlund and invest proceeds from sale of current home. You might be able to optimize by pulling only enough LTCG to stay in zero LTCG rate or even up to 15% and borrow the rest. Mortgage interest may be minimal if you then pay it down w home sale and/or harvested gains over several tax years at lower LTCG rate than you'd pay all at once. This is most beneficial if you have remaining income space in the zero LTCG rate.
If you take out a mortgage, you can either refi at lower rate later or apply proceeds of home sale if rates remain high. Only then, your capital is stagnating in home equity long term instead of deployed in market.

If my math is right, zero LTCG rate applies to married/joint up to $97600 plus $30k standard deduction = up to $127,600 taxable income