All in One Loans, thoughts?

Question

Anyone have any experience with an All in One Loan?

My mortgage broker is offering it as an option for refinance, he thinks it’s a great option and says by using it I should be able to use my extra cash flow to pay off my property in about 5 years. I’m looking for some unbiased opinions.

Pluses and minuses etc.

Appreciate your input.

Justin Phillips · Answer

@Matt Thompson @Megan BrooksHi Matt! My wife and I got on the All in One loan, and I liked it so much that I left my job in Medical Sales to join a company that specializes in them!It's a great option for investors, as it allows you to quickly pay down your principle, while retaining access to equity for 30 years! We're looking to have our investment property paid off in 4 years. Then we'll have the whole credit line available to purchase another property. When a good buying opportunity arises, we'll simply write a check out of our line and purchase in cash. The best part, each new property pays off faster than the last with the additional cash flow. With homes values so high right now, it's a great time to open one, and utilize all that equity.To answer Chris' concern, if you're a good candidate, it's really not an interest rate sensitive product. Since the payoff timeline is so condensed (5 years in your case), even if the world went nuts and rates shot up, it wouldn't change your payoff by more than a matter of months. With this product, the focus is on interest Cost rather than interest rate.It's not a good option for everyone though, it's really for those that are wise with their money and have positive monthly cashflow.

Chris Mason · Answer

The HELOC is (almost certainly) tied to prime. Prime is down right now due to the Fed's actions in response to the pandemic. In turn that makes the rate lower, the payment lower, etc.

As soon as the pandemic is over, whenever that is, prime will be jacked up, as will your payments and the rate.

Matt Thompson · Answer

@Megan Brooks I did not end up going with this product as I couldn’t get any unbiased feedback on it.

Megan Brooks · Answer

@Matt Thompson did you end up going with his product? I'm trying to do research on this as well and find out the pros and cons. Thanks!