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.
Littleton, CO · Member since 2024 · 1 post · 6 votes
2y
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)?
Kevin, Thank you a million times over! We were about to close on a refi locking in a 2.5% 30 year fixed and pulled the plug at the last minute to switch to the All in One, but the lender pretty much told me why I was making a poor choice, so this is very affirming. I so appreciate it!!
Stacy, I know it's been a few years... I just wanted to check in with your thoughts one the AIO loan now. Specifically, how you passed on a 2.5% fixed and now the variable rates have skyrocketed. Can you share your experience? THanks!
Real Estate Investor · Burlington, VT · Member since 2010 · 2k+ posts · 1k+ votes
2y
Coming across this post and reading it just now, I would ask the same question: in early 2022 I got a fixed 15 year mortgage at 3.1%. If I had instead gone with this All in One (AIO) HELOC, my rate would be 8.5 - 9%. Even going through the process of having all my deposits coming in a the beginning of the month and paying bills out of the AIO at the end of the month, wouldn't you be losing lots of money versus a 15 or 30 year fixed mortgage?
Rental Property Investor · Wichita Falls, TX · Member since 2018 · 353 posts · 79 votes
2y
So this could really benefit me if I have 10 rentals and I am currently a little tight on cash flow with them. I could get AIO with a line for 65k. I feel like this could really pay off in the long run for me. Thoughts? Advice?
Coming across this post and reading it just now, I would ask the same question: in early 2022 I got a fixed 15 year mortgage at 3.1%. If I had instead gone with this All in One (AIO) HELOC, my rate would be 8.5 - 9%. Even going through the process of having all my deposits coming in a the beginning of the month and paying bills out of the AIO at the end of the month, wouldn't you be losing lots of money versus a 15 or 30 year fixed mortgage?
Great question Tom, if you are looking at refinancing out of a 3% rate into the AIO now, the numbers likely won't work. But if you are comparing purchasing with an AIO now vs conventional loan, you have strong cash flow, the conv won't even compare! Interest savings are substantial in the AIO.
Just for comparison, I am curious to know the prevailing A-I-O loan interest-rates for a typical borrower with 720+ credit score and respectable LTV.. ?