Common Questions

What determines the Amount of the Line of Credit?

  • Appraisal Value - Down Payment = Max Line of Credit.

  • Example: If the home is purchased for $700,000 with the buyer putting 20% down, the loan amount would be $560,00. That would be the maximum amount of the line.

  • One percent hold back is to cover line payment due during the on boarding process, we do this to ensure there is no overlap, due to on-boarding taking 4 to 6 weeks. 

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 borrower qualifying characteristics.

  • The limit remains unchanged for the first ten years then steps-down each month by 1/240th for the remaining 20 years until it reaches $0. 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 taking advantage of rate movements.

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?

  • 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.

  • 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.