A Traditional Home Equity Line of Credit (HELOC) has advantages and disadvantages. It may be easier to qualify for. The traditional disadvantage is, after 10 years, this HELOC turns into a 15 years amortized mortgage.
We offer a Premium HELOC called the All In One (AIO) Loan. AIO is designed as a First Position loan. You can use your AIO for purchase or refinance – primary or investment property. AIO Loan is modernized to include every advantage enjoyed in a full service checking account, BUT, AIO KEEPs the Interest Only feature for 30 years. At the end of ten years the “available credit” is reduced monthly 1/240th of the principal amount.
You will qualify for this loan with A+ credit, high savings, and low ratios.
The Chief advantage of this simple interest loan is we escape the 10 years of front loaded interest expense we have with an amortized loan. The AIO Loan calculates interest due on a daily basis. ANY Money added to your mortgage/checking (Payroll for instance) account is, in effect, a principal payment. The monthly payment is the sum of each days (per diem) calculated interest expense. For example $10,000 of monthly cash flow, deposited into your mortgage /checking account, lowers your per diem interest expense every day it is in the account.
Compared to your amortized loan, any money put into that mortgage is Lost Liquidity, locked inside your mortgage. With AIO, you keep your liquidity. Even when the bulk of your cash flow leaves the mortgage/checking account to pay bills in 15 or 20 days you saved the interest expense on those days.
No Front Loaded amortization + lower per diem interest expense = payoff your loan in as little as 1/3 of the amortized time, working smarter w/ your money.
Dormant money in checking or savings accounts at .5% rate of return can now dramatically reduce your mortgage interest expense. You could pay your home off in 1/3 of the time and still have access to all your liquidity. Bottom Line? YOU PAID A LOT LESS INTEREST.
RETAIL & COMMERCIAL BANKERS, including this one, are tied to this type of financial structure. One Hundred Percent (100%) of banks use it when they borrow money from the Fed. This structure is recognized as the most stable and cheapest, but it is not available for anybody. A minimum of 700 score and 10% of home equity is required for homeowners/buyers. (720 score and 20% equity is best). Loan amounts can go as high as $2,000,000. Higher loan amounts may be granted on the strength of an exception basis. This loan is available for residential investment properties.
We are pleased to be approved for and to offer this modern home finance improvement. Our AIO Loan is all about working smarter with money. When you don’t need a loan, or are an investor, this is the loan you get.