Payoff your Mortgage sooner by
changing the way you pay Interest!

This loan works best with clients that have: 1) Surplus funds after paying all monthly bills. 2) Good credit. 3) Low debt ratios. 4) Desires to payoff mortgage sooner.

Because the All In One Loan™ comes with integrated banking, the flow of your income dollars and idle savings are ‘swept’ to the HELOC automatically and used to lower your loan’s daily balance. Monthly interest recomputes nightly based on your loan’s unpaid principal balance. Deposited cash left in the HELOC compounds interest savings and accelerates home pay-off.

CALCULATOR


Program Highlights

  • Structure:

    • First lien, 30-year draw HELOC

    • Minimum payment is interest only

  • Credit: 700+ credit, 720+ 10% Down

  • Minimum down payment:

    • Primary Residence 10%+, 2nd Homes 20%, Investment 25%

    • First 10% of the down payment must be from the borrower’s own funds.

    • Gift and grant funds are eligible for the remainder of funds needed for closing.

  • Eligible Property Types:

    • SFRs, including modular (manufactured not permitted), 2-4 units properties.

    • 10-acre maximum (greater than 10 acres requires investor approval), Condos - no litigation permitted

  • Ineligible Property Types:

    • Mixed use, Property on tribal land, Cooperatives, Leaseholds, Manufactured housing, Unique such as log, dome, earth, and geothermal homes, Condotels

    • Properties exceeding 10 acres.

  • Appraisal:

    • Over $1.5M requires second appraisal.

    • Cannot transfer an appraisal from another company

  • Draw: Maximum Draw Amount 99% of line

  • Ratios: Maximum 40%, possible as high as 43% with 15% reserves

  • Terms: available: 3 & 5 Year Fixed Rate then adjustable or Adjustable

  • Refinancing within 60 months (Net Tangible Benefit):

    • If refinancing a primary or second home within 60 months, MA requires a “borrower’s interest test” which verifies net tangible benefit (NTB). The NTB form included in the loan documents must be signed and dated by the borrower(s) on or before closing.

    • The AIO Loan APR at time of closing may not exceed 1% over the Prime Rate Index as published in the Wall Street Journal (WSJ).

  • Eligible Borrowers: U.S. Citizens, Revocable trusts, Permanent Resident Aliens, Non-permanent Aliens with certain documentation.

  • Ineligible Borrowers: Non-permanent resident aliens that do not meet the eligibility requirements, Diplomats, Irrevocable trusts, Land trusts, Limited and/or general partnerships, corporations, LLCs, and Non-occupant co-borrowers

  • Interested Party Contribution: 3% maximum

Account Access Timing

Once we close, several steps will take place to set up and activate the account including the creation of its banking access features for the borrower's use.

  • A welcome package is mailed to the borrower by our AIO Bank Servicer to the mailing address on file. It can take up to 60 days to accomplish these steps.

  • Upon receipt of the welcome package, the borrower gains full access to their AIO Line of Credit and can begin using it to manage their cash-flow to help lower their outstanding principal balance and interest cost. Those with strong monthly residual income tend to save the most.

First Payments After The Loan Funds

  • Interest begins accruing the day the loan funds. As part of the loan's closing structure and to ensure enough credit is available to fund the first interest payment, the maximum initial advance amount cannot exceed 99% of the approved line of credit.

  • It may take up to 60 days to complete the account set-up and activation. It also provides borrowers with some liquidity once access is received.

  • The first payment equals the total daily interest that accrues between the day the loan funds to the end of the month activation is completed.

  • The first payment will draft from the All In One Loan™ Line of Credit on the 21st of the month, or the next business day if the 21st is a weekend or holiday.

  • As an example, if a loan funded on the 5th of June, which has 30 days, with a $300,000 principal loan balance and interest rate of 3.750%, and the account is activated on the 15th of July, which has 31 days, the first payment would equal the accrued daily interest from June 5th to July 31st (57 days) and be approximately $1,756.85 ($300,000 times 3.750% divided by 365 times 57 days). Therefore, approximately $1,756.85 would be drafted from the line of credit on the 21st of August automatically, or the next business day if the 21st is a weekend or holiday. From that point forward, all interest payments will be based on each months total daily interest expense.

Common Questions

What are the Terms?

  • 30-year home equity line of credit with an integrated sweep-checking account.

  • The credit limit is established in underwriting and is based on your qualifying characteristics.

  • The limit remains unchanged for the first 10-years then steps-down each month by 1/240th for the remaining 20 years until it reaches $0. This assures an easy payoff.

What happens when you make a deposit into the checking account?

  • Deposits are swept nightly to the HELOC-side of the account and applied to loan principal. This makes higher use of idle money in order to save monthly interest expense on the mortgage, even prior to being spent.

How do you access money to pay bills?

  • Deposited cash and home equity dollars become one and remain available for use 24/7 over the 30-year term of the HELOC.

  • Money can be accessed through the ATM-VISA cards, by writing checks or paying bills and transferring funds online through the All In One Loan bank portal and your mobile device.

Pay it off as quickly as you want

  • There is no amortized payment schedule to hold you back.

  • Clients eliminate upwards of 10% of their principal balance annually or more and payoff in half the time or less compared to a traditional mortgage.

  • The key is your banking behavior. If you spend less than you earn each month, chances are you make a great candidate.

How much can you borrow?

  • The maximum loan amount is $2 Million; however, exceptions may be made when loan-to-value levels are low.

Can you take cash out at closing?

  • Cash can be disbursed at closing to help fund near-term financial goals up to 80% of the value of the home to $1 Million, 75% to $1.5 Million and 70% to $2 Million.

  • For investment properties, there is a maximum amount limit. Check with Ray.

What comes with the checking account?

  • This account will be available 2-4 weeks after closing.

  • The checking account comes with all the same features you're accustomed to with a traditional bank account, including ATM Debit Point-Of-Sale (POS) VISA card access, checks, bill-pay, external account transfer, direct deposit, mobile banking and much more. It's a complete checking account with a team of customer service agents to rely on.

Is the Rate fixed?

  • Although there are options for a short, fixed periods 3-5 years, once the fixed rate period ends, the loan will begin to adjust monthly. Which means your loan’s interest rate can change every month throughout the term not fixed.

Are adjustable rate mortgages risky?

  • The All In One Loan isn't your typical adjustable-rate mortgage that amortizes your payments and principal reduction. For cash-flow positive borrowers it is designed to generate savings even if the rate rises. That's because the key to lowering the cost of borrowed money is lowering the amount owed (in which interest is computed) as well as reducing the time in debt. The faster loan principal is repaid the greater the savings. As an example, a 2.500% mortgage designed to pay-off in 30-years is more expensive than a 10.000% mortgage that pays-off in 5.

What Index is used?

  • The loan is based on a popular index, the 1-year CMT, (Constant Maturity Treasury Index, CMTN1Y).

  • It's a measure of the average yield of treasuries. Over the last 25 years, it has averaged about 2.1%. It changes regularly and is reported on daily in the Wall Street Journal. We use the value that is published on the first business day of each month.

  • Is the index volatile?

  • The One-Year Constant Maturity Treasury Rate (CMT) moves independently from most mortgage rates and trends similarly with the Effective Federal Funds Rate and monetary policies set by the Federal Open Market Committee (The Fed).

  • The Fed regularly meets each year and makes critical decisions that influence the nation's economic growth and money supply.

Is there a rate cap?

  • Yes. There is both a floor-rate and a ceiling cap. The floor-rate is determined by the occupancy of the home being financed while the ceiling-cap is 6% above the initial rate when the loan closes.

  • Additionally, the five-year fixed option comes with subsequent adjustment caps of 2% on months 61 and 62.

Is my low-rate mortgage better?

  • It depends on your management of your income and idle cash.

  • If you routinely spend more than you earn and use credit to supplement expenses, then a standard traditional mortgage may be more suitable.

  • If you are cash-flow positive and possess financial discipline, the All In One Loan may offer life changing benefits.

  • Remember, interest rate is only one-third of the cost equation. The principal balance owed and the length of time it takes to repay are the other two-thirds and can have a much greater impact.