Gustan Cho Associates are always expanding the mortgage programs we offer to our clients such as our new all-in-one mortgage loan program.  We are happy to announce the rollout of a brand-new mortgage loan that is unlike any product we have offered in the past. In this blog, we will detail our newest program available as well as how to apply for this mortgage loan. Some experts feel the traditional mortgage programs are going to be a thing of the past in the next 20 years. The new “all in one” mortgage loan could be the start of a new trend. Now, let’s dive into more detail.

What Is The All In One Mortgage?

The main program we would like to talk to you about today is called the “all in one mortgage loan”. This mortgage product is very different than your traditional 30-year fixed mortgage. If you currently have a 30-year fixed mortgage and have seen your amortization table, it may be frustrating. At the beginning of a traditional 30-year mortgage, most of your payment is interest paid to your lender and barely touches your principal balance. And the longer you stay in that mortgage, the more of your monthly payment will attack the principal balance of your home. The higher the interest rate, the less principle will be paid each month. While most Americans are not in their mortgage loan for the full 30 years, a 30-year fixed mortgage is by far the most popular mortgage program.

Paying Your Home Loan Balance Early With The All In One Mortgage

30 years is a very long time to pay off a home. Investors are getting creative with new mortgage products that allow you to combine home financing and personal banking into one account. Your everyday banking deposit will actually lower the principal balance of your house. And what makes this program attractive is, those funds will remain available for expenses, such as paying your bills. Interest is calculated on the daily average of your principal balance.

How To Save Money on Interest With The All In One Mortgage

This new mortgage program may substantially lower the overall monthly interest payments you make on your home compared to your everyday 30-year fixed mortgage program. You can literally save tens of thousands of dollars over the life of the loan. And you have the ability to pay off your loan even faster since you will never have a prepayment penalty. In simple terms, this is a home loan that works like a bank account (checking account).

How Does The All In One Loan Program Work?

All of these loan features sound fantastic right? Let’s dig into this a little bit further. Since your mortgage and checking account will be one and the same, what happens when you make a deposit into your checking account? Every night, you will see a portion of your checking account applied to your loan principal. This makes better use of your idle money in order to save on mortgage interest, even prior to the money being spent.

Do I Need To Tie Up My Liquid Bank Account To Participate in the All In One Mortgage Loan Program?

How can you utilize the money to pay bills? The money deposited into your checking account and home equity dollars in the account remain available for use at any moment over the 30-year term of the “all in one” mortgage loan. This money can be accessed through ATMs, a visa (debit) card, writing checks, or paying bills/transferring money online. Just like the online banking you have today. The “all in one” loan also has a mobile banking option easily accessible
on your phone.

Save Tens of Thousands in Mortgage Interest With the All In One Mortgage Loan

You keep mentioning saving money on interest, but what are the loan terms? Simply put the “all in one” loan is a 30-year home equity line of credit or a HELOC with an integrated checking account. Your credit limit will be established during the underwriting process based on mortgage qualifying guidelines. The limit will remain unchanged for the first 10 years (120 months) and then will start to go down for the remaining 20 years (240 months) until your principal balance
reaches $0. Each month after the initial 10 years, your limit will be reduced by a fraction of 1/240 for the remaining balance. We understand this can be confusing, so please reach out to the “all in one” loan expert, Mike Gracz on (800) 900-8569 or via email at mike@gustancho.com.

How Fast Can I Pay Off My Mortgage With The All In One Loan?

How fast can you pay off your mortgage loan? The nice feature of the “all in one” mortgage loan is there is no prepayment penalty. So, it is up to you how quickly or slowly you would like to pay this loan off. There is no true amortized payment schedule to hold you back like traditional mortgage financing. Most consumers using the “all in one” loan will end up paying off approximately 10% of their principal balance each year and many will pay their mortgage off twice as fast (15 years versus 30 years). The key to this loan is your banking behavior. If you spend less than you earn each month, this mortgage program can save you a boatload of money. The surplus idle money in your account will pay down the principal balance of your home.

How Much Can I Borrower Against My Home With The All In One Loan?

How much can you borrow against your home? Currently, the maximum loan amount for the “all in one” mortgage loan is $2 million. There are loan-to-value (LTV) requirements, so you need to make sure you are under those thresholds.

Can I Utilize The All In One Mortgage On Investment Properties?

Can I utilize the “all in one” loan to purchase an investment property? With all the news in the mortgage industry surrounding second homes and investment properties, alternative financing may be your best option. The good news is, the “all in one” mortgage loan can be used to purchase a primary home, secondary vacation home, or investment property.

How Quickly Can I Take Money From My Home Equity on the All In One Mortgage?

How quickly can you take cash out with your home equity line of credit? This is a great question and one that depends on your down payment at the beginning of your purchase transaction. You can take up to 80% loan to value (LTV) of cash out of your property at any time. There is no waiting period to have access to your money. You must keep at least 20% equity in the property at all times for loan amounts up to $1 million, 25% equity in the property for loan amounts of $1.5 million, and at least 30% of equity for loans up to $2 million. The numbers above are for primary homes and the loan to value requirements will change for second homes and change again for investment properties. Please check with your loan officer for further details.

Benefits of Using All In One Mortgage On Investment Properties

Is this a good program to use for investment properties? This can be a great program to use for investment properties. Here are a few reasons why. The recent announcements by Fannie Mae and Freddie Mac have really put the kibosh on non-primary residential lending. Meaning the extra loan-level price adjustments (LLPAs) or hits to the interest rate for second homes and investment properties have become nearly catastrophic.

Participating in the All In One Mortgage For Homebuyers

It is a way for the major agencies to attempt to cool off the housing market and allow more first-time homebuyers to obtain real estate. However, many skeptics think this is just a help for the large hedge funds that are currently purchasing residential property at record numbers. Either way, you look at it, alternative financing may be your best option. Utilizing the “all in one” loan can also give you a 30-year home equity line of credit linked with a checking account. This will give you control and flexibility of your investment property payments.

Using Rental Income Deposits To Lower Your Loan Balance

If you are utilizing this program, use rental income to lower your principal balance faster and save on overall interest payments. Your monthly payments will reduce automatically. This will help you create a higher monthly cash flow based on your rental unit. Since this mortgage program is a home equity line of credit, you will then have access to those funds in order to finance any upgrades, repairs, or future investments. Many borrowers who are utilizing this program will tap into their home equity line of credit to purchase additional investment properties down the road. This can be a great tool to becoming a
real estate mogul.

Learn More About The All In One Loan Program at Gustan Cho Associates

How to learn more about this program? There are weekly webinars for borrowers as well as real estate professionals to become more familiar with this mortgage program. You can sign up for this program at any time.

All In One Mortgage Video

All In One Mortgage Loved By Real Estate Agents

Why real estate agents love the “all in one” mortgage loan. Everyday mortgage financing such as conventional or FHA / VA mortgage programs will usually take a 30-year payoff schedule. As we talked about earlier in this article, at the beginning of a traditional 30-year mortgage, most of your payment will be used to pay your lender interest. This limits your ability to utilize your housing payments as capital investments.

How All In One Mortgage Benefit Real Estate Investors

Real estate agents like it when their clients use the “all in one” mortgage loan because it is a smarter way to finance their purchases. Homeowners with all in one mortgage program are able to access money for future investments. Meaning your real estate agent can sell you another home in a shorter time period. This can be a great program to use for investing in numerous properties in a shorter period of time. If you follow some of the richest people on the planet, most of them have numerous real estate investments.

About Gustan Cho Associates

A quick update about Gustan Cho Associates. Our company is constantly growing, and we are proud to announce we will have access to even more mortgage programs than before. We have opened up numerous broker outlets to help expand our business and help more clients. Besides the “all in one” mortgage, we now have access to even lower interest rates as well as more options for lower credit score borrowers. Many of our clients have been turned down by their current bank and feel helpless. That is where we are able to save the day. Since we have a no overlay lender lending platform, we are able to help more families than most mortgage lenders. For any general-related mortgage questions, please reach out to our new program expert, Mike Gracz, on (800) 900-8569. Mike can also be reached via email at mike@gustancho.com. We are here to help you obtain your next home or refinance your current home!