Pro’s of All-In-One

  • Lowers the cost of real estate without depending on lower rates.

  • It’s how interest is calculated.

  • Lowers monthly payment automatically during the loan without refinancing.

  • Fewer total payments without increasing the monthly payment amount.

  • Provides access to home equity for 30-years, without refinancing or getting a second lien HELOC.

  • Reduces interest paid over life of loan.

  • Principle is paid first.

  • Interest is calculated daily as simple interest after principal payments are credited.

  • Mortgage paid off much sooner than typical forward mortgages, (average is 8 to 12 years).

  • 90% LTV for Purchases.

  • The Index used is the 30-day average SOFR (1.925% historically).

  • No pre-payment penalty.

  • No balloon payment.

  • Asset depletion available to qualify.

  • Delayed financing option.

  • You can close in a Revocable Trust.

  • Since 1985, CMG has not had a default on this loan type.

Con’s of All-In-One

  • More difficult to Qualify:

    • Higher credit scores required.

    • Lower debt ratios required.

  • Escrows (taxes & insurance) not included.

  • Reserves 10% of the line-amount.

  • The interest rate is often slightly higher than a forward mortgage.

  • Owners have easy access to their home’s equity, which is bad for those who are not financially disciplined.