HOW SOME HOMEBUYERS ARE USING UNCONVENTIONAL FINANCING TO SAVE THOUSANDS ON INTEREST IN TODAY’S REAL ESTATE MARKET

Some homebuyers have chosen to utilize non-traditional financing strategies, such as the 30-Year First Lien HELOC, also known as the All-In-One Mortgage, to gain an advantage over banks and optimize their financial position in the housing market. The All-In-One Mortgage is a powerful tool that allows borrowers to save on interest expenses and accelerate equity growth at a much faster pace. By consolidating the borrower's primary mortgage, savings, and income into a single account, this innovative mortgage structure reduces interest costs by applying daily deposits towards the outstanding principal balance. With the All-In-One Mortgage, borrowers have the potential to pay off their loan within 7-10 years instead of the traditional 30-year term, enabling them to build equity quickly. Additionally, this mortgage option offers the flexibility to access equity without the need for a refinance. Ideal for borrowers making a minimum 10% down payment, the All-In-One Mortgage empowers borrowers to optimize their mortgage strategy, save on interest, and enhance their financial flexibility.

Here is an example of how it works:

Suppose you are purchasing a home for $600,000 and an interest rate of 7.25%. Assuming a minimum down payment of 10%, which is $60,000, the remaining loan amount would be $540,000.

With a traditional mortgage at an interest rate of 7.25% and a loan term of 30 years, your monthly principal and interest payment would be approximately $3,708, and over the course of the loan, you would pay a total of $859,251 in interest.

Now, let's consider the All-In-One Mortgage for this scenario. Assuming you have a consistent monthly income of $8,000, and after your expenses, you have $2,000 available to deposit into your All-In-One Mortgage account each month. By making these additional deposits, you effectively reduce your outstanding balance and save on interest.

With the All-In-One Mortgage, you have the potential to pay off your loan within 7-10 years, significantly shorter than the traditional 30-year mortgage. By doing so, you can save a substantial amount of interest over the life of the loan.

But here is the beauty, the All-In-One Mortgage allows you to access the equity you've built up without the need for a refinance or open a HELOC. So, if you need to fund other endeavors or cover expenses, you can conveniently access your equity upfront by using a debt card, checks, or simply transferring money from your equity to your savings or checking account.

In summary, the All-In-One Mortgage provides borrowers with the opportunity to beat the banks at their own game by saving on interest, building equity faster, and potentially paying off their $600,000 loan within a much shorter timeframe, all while enjoying the convenience of accessing their equity without the need for a refinance.

If you would like to know more about the All-In-One Mortgage Strategy, schedule a consultation to know if the All-In-One is the right strategy for you.