Enter the all-in-one first lien HELOC, which functions much like a line of credit on a credit card; daily deposits in the account guiding the interest rate paid for the principal that day. Specific banks offer the all-in-one loan, which brings your primary mortgage, checking, and savings account together in a combination loan, which borrowers can access like a regular bank account for deposits and withdrawals. In addition, this feature allows you to borrow money and pay it back as often as you like over the 30 year loan period without refinancing. These loans are best suited to borrowers with stable cash flow or periodic large influxes.
All-in-one loans can drastically reduce the time it takes to pay off a mortgage loan, saving these borrowers thousands in interest. The interest on a fixed-rate home equity line of credit (HELOC) takes decades to overcome, adversely impacting your finances and decreasing your potential monthly cash flow. The savings in the all-in-one come through the much lower amortization on the mortgage loan. Read on to learn more about what Orange County investors should know about all-in-one loans.
Interest Saved Vs. Interest Earned
While you may earn a small amount of interest on your checking or savings accounts, Orange County investors should know about the interest saved by allowing the balance to apply to the principal on all-in-one loans, which is another one of the benefits the program offers.
Comparing Apples and Oranges
Amortization for a 30 year fixed or closed-ended with no early payments generally takes 21 years before your payment becomes about 50 percent interest and 50 percent principle. Orange County investors should also know that all-in-one loans are open-ended adjustable-rate mortgages, calculated by the daily outstanding principal balance times the current month’s fully indexed interest rate. Simple interest is calculated daily but charged at the end of the month. All-in-one loans are also tax-deductible.
First Lien
Just as it sounds, Orange County investors should know that one requirement of all-in-one loans is first-lien loans or first mortgages, and there is no need to worry about a second mortgage payment.
Eligible Property
Orange County investors should know that all-in-one loans are available to eligible borrowers, typically with at least 20 percent equity, for a new mortgage, refinancing an existing primary residence, second home, or investment property.
Loan Amount
Orange County investors should know that your eligibility with the lenders of all-in-one loans will be dependent upon the loan-to-value ratio (LTV) and your credit score. These loans are typically for around 80 to 90 percent of the home’s value. However, your LTV and credit score will significantly influence the final decision.
Financing Other Investments
Orange County investors should know about the power of accessing all-in-one loans to leverage their equity and attain more holdings, further increasing monthly cash flow and improving long-term passive income.
No Escrow
Unline conventional mortgage loans, Orange County investors should know that you will be responsible for paying your property taxes and insurance because all-in-one loans don’t involve escrow accounts.
Features
Orange County investors should know they can use debit cards, access mobile banking, and need no overdraft protection with all-in-one loans.
Online Simulators
Orange County investors should know that many sites offer simulators to compare the actual cost of your current mortgage payment against an all-in-one loan. Just plug in the numbers and see the financial advantage for yourself.
The experienced pros at H&M Realty Group are happy to answer any questions Orange County investors need to know about accessing all-in-one loans. In addition, the professional buyers at H&M Realty Group can help you evaluate your property’s value and find out if an all-in-one loan is right for you. Contact H&M Realty Group at 949-625-4533.