All in One Loan: thoughts? opinions?

[Stacy Voss]

Has anyone used an all in one on their primary residence (or not used it and are willing to share why)? I know the interest rate is higher than a 30-year fixed but it might be advantageous to pay down interest.

Thoughts? Suggestions? I'm a newbie to real estate investing, so little words are very much appreciated :)

Big picture if it helps: I'm exploring an all in one so I can plop extra savings into it until I'm ready to purchase additional properties and then can pull the money from the all in one for a downpayment elsewhere and then will continue to throw money into the all in one from my main job as I save for additional downpayments.

[Matt Folsom]

I've just heard about these loans and I am interested in refinancing a primary and HELOC into an All-In-One type loan. A couple of questions, although several have already been answered on this forum...

Is it worth shopping around for multiple lenders due to perhaps differing terms on these (rates, restrictions, fees, etc) or are they all generally the same? Are there more reputable lenders for this type of loan? I've really only heard of LifeChanger at this point...

What happens when my loan is paid off? I would think I could just start using a normal checking/savings account and no longer touch the credit available in the HELOC (and hence not have to pay interest on monthly expenses). I'm guessing I would not close the loan if I still want access to the equity (which is a big selling point of the loan)...or obviously sell the property and buy something else. Or, are there other options...invest in another property perhaps?

What are the hidden negatives of the loan compared to a conventional loan (aside from the yearly fees)? Is the possibility of freezing the credit line a real issue (hence I need to have another stash of cash available)?

Thanks for your time and responses!

-Matt