Frequently Asked Questions

The HomeSelect™ All in One Loan™ is a 30-year, first lien home equity line of credit (HELOC) with a 30-year draw period and an integrated zero-balance sweep-checking account. It provides borrowers the opportunity to more effectively use their income dollars to drive down their principal balance faster and significantly lower their monthly and lifetime interest payment expense, while keeping their funds securely liquid for regular spending needs. It can be used to finance 1-to-4-unit residential properties through a home purchase or mortgage refinance and is available for primary residences, second homes and investment properties.

Deposits made into the integrated checking account lower loan principal through a feature known as "sweep" which credits the funds to the HELOC balance automatically. In other words, deposited money lowers the mortgage balance by the same amount. That money remains securely available 24/7 for bills and expenses, the same way all other common checking accounts do. But prior to being spent, they are used by the HomeSelect™ All in One Loan™ to lower monthly interest payment expense. Interest is computed nightly on the lower principal balance, then totaled once the month ends. That becomes the interest payment which is drafted automatically from the HELOC on the 21st of the following month. If the 21st falls on a weekend or holiday, the interest payment is drafted the next business day. Through regular monthly banking activity, the principal balance and interest expense can lower much faster than a traditional mortgage.

The purpose of the HomeSelect™ All in One Loan™ is to reduce lifetime interest expense and provide borrowers greater control of their pay-off timing and use of home equity dollars, without changing their monthly budget or relying on interest rates. Cashflow positive borrowers can pay off their balance potentially decades sooner compared to a traditional mortgage and save tens of thousands of dollars in interest in the process. Many borrowers also use their HomeSelect™ All in One Loan™ to invest in additional properties. Add an answer to this item.

The HomeSelect™ All in One Loan™ checking account comes with all the same features you're accustomed to with a traditional bank account, including ATM Debit Point-Of-Sale (POS) VISA card access, checks, bill-pay, external account transfer, direct deposit, mobile banking and much more. It's a complete checking account with a team of customer service agents to rely on if ever you have questions about your account.dd an answer to this item.

The HomeSelect™ All in One Loan™ has helped several thousands of borrowers advance their housing goals more flexibly and strengthen their overall financial health, every year, since its release in 2005. Unfortunately, mainstream banks may view the program as a threat to their ability to leverage customer deposits and many lenders lack the determination to market a product that requires more consumer education than traditional financing. Additionally, traditional HELOC products aren't designed to accelerate mortgage payoff. This is what makes the HomeSelect™ All In One Loan™ so unique.

The HomeSelect™ All in One Loan™ has proven to lower risk of borrower delinquency and default compared to traditional mortgages and is valuable because it develops a longer-lasting relationship with customers due to its extended draw-period. With so much built-in flexibility and savings opportunities, it is engineered to potentially be the last loan needed on the home is it used to finance and can be used to fund other major objectives, in and outside of real estate.

Yes. It can be used to finance primary residences, second homes and investment properties. Check with your licensed Loan Officer for more details.

It depends on the situation. In most cases, having one HomeSelect™ All in One Loan™ in place can be very advantageous and help pay down multiple mortgages. Savings can be farmed from a property with the HomeSelect™ All in One Loan™ and used to lower principal on a conventional mortgage on another property more aggressively while making faster progress on both. In other cases, it may also make sense to obtain more than one HomeSelect™ All in One Loan™ due to the level of cash-flow a borrower has.

The only part of the HomeSelect™ All in One Loan™ that is fixed is the margin, which borrowers lock-in prior to closing. The index may adjust monthly. The sum of the margin and index is the rate.

The HomeSelect™ All in One Loan™ isn't your typical adjustable-rate mortgage that amortizes your payments and principal reduction. For cash-flow positive borrowers it is designed to generate savings even if the rate rises. That's because the key to lowering the cost of borrowed money is lowering the amount owed (in which interest is computed) as well as reducing the time in debt. The faster the loan principal is repaid the greater the savings. As an example, a 2.500% mortgage designed to pay-off in 30 years is more expensive than a 10.000% mortgage that pays-off in 5.

The One-Year Constant Maturity Treasury Rate (CMT) is the index used to set the interest rate. This index is a measure of yield from one-year treasury bonds recently auctioned by the U.S. Treasury and is has been a broadly used benchmark rate within the lending industry for decades.

The HomeSelect™ One-Year Constant Maturity Treasury Rate (CMT) index is updated on the last business day of each month. The most recent available value published on the Board of Governors of the Federal Reserve System website (https://www.federalreserve.gov/releases/h15/) is used for the following month.

The One-Year Constant Maturity Treasury Rate (CMT) moves independently from most mortgage rates and trends similarly with the Effective Federal Funds Rate and monetary policies set by the Federal Open Market Committee (The Fed). The Fed regularly meets each year and makes critical decisions that influence the nation's economic growth and money supply. For more information about the index speak with a licensed Loan Officer and visit the  HomeSelect™ All in One Loan™ Interactive Comparison Simulator.

A variety of margin options are available with HomeSelect™ All in One Loan™ financing and are defined by the occupancy of the property. Speak to a licensed Loan Officer for more details.

No. The margin is fixed over the duration of the loan's term and will not adjust.

Yes. There is both a floor-rate and maximum-rate (ceiling) applied to the HomeSelect™ All in One Loan™. The floor-rate is the lowest rate charged and is determined by the occupancy of the home. The floor-rate for primary residences and second homes is 3.750%. The floor rate for investment properties is 4.750%. The maximum rate is 6.000% above the initial rate at closing. Both are described in detail on the credit line agreement (note).

The sum of the margin and monthly index is the rate charged on each day's ending loan balance. While the index may adjust lower or higher over time, lowering the loan's principal balance aggressively helps borrowers dramatically lower their monthly and annual interest costs using the HomeSelect™ All in One Loan™.

It depends on your management of your income and idle cash. If you routinely spend more than you earn and use credit to supplement expenses, then a standard traditional mortgage may be more suitable. If you are cash-flow positive and possess financial discipline, the HomeSelect™ All In One Loan™ may offer life changing benefits. Remember, interest rate is only one-third of the cost equation. The principal balance owed and the length of time it takes to repay are the other two-thirds and can have a much greater impact.

Yes. The HomeSelect™ All in One Loan™ Interactive Comparison Simulator is engineered to analyze total interest cost and pay-off timing results compared to a traditional mortgage. It is available online and is easy to use. Ask your licensed Loan Officer for details.

The approved credit limit remains unchanged for the first 10 years, then reduces each month by 1/240th thereafter. This unique structure keeps money liquid and available for use for an extended period compared to traditional HELOC products and ensures a comfortable paydown.

Yes. The process follows industry standards and practices. Speak to your licensed Loan Officer for more details and obtain an estimate of fees.

If the loan balance is paid to zero, the HomeSelect™ All in One Loan™ HELOC remains open and available for use for the remainder of the term. It does not close unless requested. If closed, the borrower will receive their Deed of Trust.

Once an HomeSelect™ All in One Loan™ funds, the account set-up process begins. Borrowers receive a "Congratulations and What to Expect" letter electronically delivered over secured email messaging, within about 72 hours after closing. Bank cards and information regarding accessing the account online and through the mobile App is included in a packet mailed by the Loan Servicer within about 30 days.

Mortgage interest paid towards the HomeSelect™ All in One Loan™ is eligible for deduction and a 1098 is issued to borrowers at the end of each calendar year. As outlined in Publication 936of the U.S. IRS Tax Code, deduction eligibility is not defined by the type of loan you have on your home, but rather by the occupancy of the property and the use of the mortgage security (i.e. to buy, improve, etc.). Interest paid on home equity loans and line of credit is deductible if the borrowed funds are used to buy, build, or substantially improve the taxpayer's home that secures the loan. The loan must be secured by the taxpayer's main home (primary residence) or second home and meet all other requirements. Refer to Publication 936 (https://www.irs.gov/pub/irs-pdf/p936.pdf) and speak with a tax professional for advice.

The linked checking account is FDIC insured and monies swept or transferred to the HELOC become equity money. The borrower's equity ownership in their home is insured by their homeowners Insurance Policy.