All-In-One Mortgage

An all-in-one mortgage is a loan that allows depositors to reduce the amount of interest paid on their mortgage while granting access to any equity that has built up in the property.

The all-in-one mortgage works much like an offset mortgage or home equity line of credit (HELOC). Any deposits made into the savings portion are applied towards paying down the mortgage while still remaining accessible for withdrawal. This type of mortgage lessens the amount of interest that is paid over the life of the loan. It also cuts down on any fees that could be incurred during future refinances which can add up to tens of thousands of dollars over the typical 30-year life span of a mortgage.

A homeowner can access their equity in a few ways, but most commonly it is done by writing checks directly from the account or by transferring money between the all-in-one mortgage account and a traditional checking or savings account. The methods available for withdraw vary between institutions, but the fact remains that all lenders allow limitless draws as long as the accounts are paid as agreed and there are funds available.

The down side of an all-in-one mortgage is having endless access to draw on the equity of the home. In theory, a homeowner could continuously draw on equity as it builds and never fully pay off their mortgage.   

When a homeowner wishes to change the existing terms of their note, they refinance their mortgage. Reasons for refinancing can vary from wanting to take advantage of lower interest rates to removing a spouse after a divorce.

To refinance their mortgage, a homeowner must take some of the same steps they did when they first purchased their home. They will need to contact a licensed mortgage broker or loan agent to review their income and credit to verify that they will qualify for any changes they wish to make. The qualification process is like that of a purchase. The home will still need to meet required standards and depending on the loan program there may be document verifications required as well.

Once a refinance application is completed and approved, the homeowners will need to undergo a closing procedure. This generally has less paperwork than the original purchase did, but still requires a new mortgage note and deed be executed. These contain the new terms of the mortgage.

As with a cash-out refinance, an all-in-one mortgage allows a homeowner to draw on the equity of the home, but without having to go through all the steps listed above, saving them both time and money in the process.