Frequently Asked Questions

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.

Deposited money lowers the mortgage balance by the same amount, while remaining securely available 24/7 for bills and expenses like a common checking account.

Interest is computed nightly on the lower principal balance, then totaled once the month ends. That becomes the interest payment drafted automatically from the HELOC on the 21st of the following month, or the next business day if needed.

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.

The HomeSelect™ All in One Loan™ checking account comes with the same features you expect from a traditional bank account, including ATM debit POS VISA card access, checks, bill-pay, external account transfer, direct deposit, mobile banking and more.

It is a complete checking account with customer service support available if questions come up.

The FAQ says the HomeSelect™ All in One Loan™ has helped many borrowers strengthen financial health and advance housing goals since 2005.

It says mainstream banks may view the program as a threat to their ability to leverage customer deposits, and many lenders do not want to market a product that requires more consumer education than traditional financing.

It also states that traditional HELOC products are not designed to accelerate mortgage payoff, which is part of what makes this product unique.

The FAQ says the HomeSelect™ All in One Loan™ has proven to lower borrower delinquency and default risk compared to traditional mortgages.

It also says it is valuable to lenders because it develops a longer-lasting customer relationship due to the extended draw period and built-in flexibility.

Yes. The FAQ says it can be used to finance primary residences, second homes and investment properties.

It also advises borrowers to check with a licensed Loan Officer for more details.

The FAQ says it depends on the situation.

In many cases, one HomeSelect™ All in One Loan™ can help pay down multiple mortgages by farming savings from one property and using them to lower principal on another more aggressively.

In other cases, it may make sense to obtain more than one depending on a borrower’s level of cash flow.

The only fixed part of the HomeSelect™ All in One Loan™ is the margin, which borrowers lock in before closing.

The index may adjust monthly. The sum of the margin and the index is the rate.

The FAQ says this product is not like a typical adjustable-rate mortgage that amortizes payments and principal reduction.

It says that for cash-flow-positive borrowers, it is designed to generate savings even if the rate rises, because the key to lowering the cost of borrowed money is lowering the amount owed and reducing the time spent in debt.

It gives an example that a 2.500% mortgage designed to pay off in 30 years can be more expensive than a 10.000% mortgage that pays off in 5 years.

The FAQ page states that the One-Year London Interbank Offered Rate (LIBOR) is the index used to set the interest rate.

However, the very next FAQ answer refers to the HomeSelect™ One-Year Constant Maturity Treasury Rate (CMT) index being updated monthly, so the live page appears internally inconsistent on this point and should be reviewed before publishing elsewhere.

The FAQ says the HomeSelect™ One-Year Constant Maturity Treasury Rate (CMT) index is updated on the last business day of each month.

It says the most recent available value published by the Federal Reserve is used for the following month.

The FAQ says the One-Year Constant Maturity Treasury Rate (CMT) moves independently from most mortgage rates and tends to track similarly with the Effective Federal Funds Rate and monetary policy decisions set by the Federal Open Market Committee.

It recommends speaking with a licensed Loan Officer and visiting the HomeSelect comparison simulator for more information.

The FAQ says a variety of margin options are available and that they are defined by the occupancy of the property.

It advises speaking to a licensed Loan Officer for more detail.

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

Yes. The FAQ says there is both a floor-rate and a maximum-rate ceiling applied to the HomeSelect™ All in One Loan™.

It says the floor-rate for primary residences and second homes is 3.750%, the floor rate for investment properties is 4.750%, and the maximum rate is 6.000% above the initial rate at closing.

The FAQ says the sum of the margin and monthly index is the rate charged on each day’s ending loan balance.

It adds that while the index may move lower or higher over time, aggressively lowering principal can dramatically reduce monthly and annual interest costs.

The FAQ says it depends on how income and idle cash are managed.

If someone routinely spends more than they earn and uses credit to supplement expenses, a standard traditional mortgage may be more suitable.

If they are cash-flow positive and financially disciplined, the HomeSelect™ All In One Loan™ may offer significant benefits, because interest rate is only one-third of the cost equation — principal balance and time to repay are the other two-thirds.

Yes. The FAQ says the HomeSelect™ All in One Loan™ Interactive Comparison Simulator is designed to analyze total interest cost and payoff timing versus a traditional mortgage.

It says the simulator is available online and easy to use, and suggests asking a licensed Loan Officer for details.

The FAQ says the approved credit limit remains unchanged for the first 10 years, then reduces each month by 1/240th thereafter.

It says this keeps money liquid and available for an extended period compared to traditional HELOC products while ensuring a comfortable paydown.

Yes. The FAQ says the process follows industry standards and practices.

It recommends speaking to a licensed Loan Officer for more details and a fee estimate.

If the loan balance is paid to zero, the FAQ says 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 receives their Deed of Trust.

The FAQ says once the HomeSelect™ All in One Loan™ funds, account set-up begins.

Borrowers receive a “Congratulations and What to Expect” letter electronically within about 72 hours after closing, and cards plus online/mobile banking access information are mailed by the loan servicer within about 30 days.

The FAQ says mortgage interest paid toward the HomeSelect™ All in One Loan™ is eligible for deduction and that a 1098 is issued at year-end.

It states that deduction eligibility depends on property occupancy and use of the secured funds, not simply the loan type, and references IRS Publication 936 while advising borrowers to consult a tax professional.

The FAQ says the linked checking account is FDIC insured and that monies swept or transferred to the HELOC become equity money.

It also says the borrower’s equity ownership in the home is insured by the homeowner’s insurance policy.