All-in-One Loans
What are All-in-One Loans?
The all-in-one loan, also known as a "combo" or "all-in-one mortgage," is a financial product that combines a mortgage loan with a full-featured checking account.
With an all-in-one loan, borrowers have the ability to deposit their income directly into the checking account portion of the loan. The balance in the checking account is then used to offset the outstanding balance of the mortgage loan. This unique feature allows borrowers to reduce their mortgage interest costs over time by applying their income to the outstanding balance on a daily basis.
Who Is Eligible for All-in-One Loans?
1
The eligibility criteria for an all-in-one loan are a little stricter than a traditional loan, as the borrower needs to be very disciplined. All-in-one loans are available for primary residences, second homes, and investment properties. The type and condition of the property will be considered during the loan eligibility assessment.
Features
Flexible Access to Funds
With an all-in-one loan, borrowers can access the equity in their home through the all-in-one account. . This provides flexibility to use the available equity funds for various purposes, such as home improvements, debt consolidation, investments, or other financial needs.
Automatic Payment Allocation
The cash value growth within the policy can generally be accessed without paying income tax, Policy loan proceeds are typically tax-free, as they are considered borrowed funds rather than income. The interest paid on policy loans can be tax deductible when used for investment purposes.
