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All in One Mortgage that is 100% HELOC

Home Mortgages and Home Buying All in One Mortgage that is 100% HELOC

  • Avatar vickiH 
    Participant
    Status: Other Professional
    Posts: 1
    Joined: 03/23/2019

    Hello,
    I recently went to a presentation put on by CMG Financial about the All In One Mortgage. This plan takes your entire mortgage balance and puts in a HELOC. You run your checking and savings account through this account and run your daily expenses on a credit card that is paid off at the end of each month. By depositing our 4 monthly paychecks into the account it keeps a high cash flow and the interest is calculated on a daily basis instead of a monthly basis. We have to have at least 20% equity in our home (which we do) and a high credit score (which we do) in order to qualify.
    Using this method we are being told our $315K mortgage will be paid off in 7.3 years.
    We currently are 5 years into a 30 year mortgage at 4.125 interest rate.
    Thoughts? Has anyone heard of the All in One Mortgage?

    #200649 Reply
    Zaphod Zaphod 
    Participant
    Status: Physician, Small Business Owner
    Posts: 6177
    Joined: 01/12/2016

    There has been a blog post or two, and some discussion here for sure.

    The TL;DR synopsis is that its a very complicated method that essentially boils down to just paying more. You wont gain anything really over just putting more towards principal but I think one of the keys to this program is that the complexity makes it seem that you are somehow beating the system when youre just paying more each month. Of course they get a fee for “setting it up” etc…so thats nice for them.

    If you want to pay off the mortgage in a shorter amount of time the easiest thing to do is to go to an online calculator and find out how much of an extra monthly payment it is to reach that time frame and you’ll be done.

    #200785 Reply
    CordMcNally CordMcNally 
    Participant
    Status: Physician
    Posts: 2817
    Joined: 01/03/2017

    There’s no secret trick to paying off a mortgage earlier. If you want to pay it off in 7.3 years, calculate how much extra you need to put towards it per month.

    “But investing isn’t about beating others at their game. It’s about controlling yourself at your own game.”
    ― Benjamin Graham, The Intelligent Investor

    #200790 Reply
    Liked by Zaphod
    ENT Doc ENT Doc 
    Participant
    Status: Physician
    Posts: 3502
    Joined: 01/14/2017

    Classic blunders include:

    1.  Getting involved in a land war in Asia

    but slightly less well known is this:

    2.  Doing what is recommended after attending a presentation put on by XXX Financial

    #200791 Reply
    CordMcNally CordMcNally 
    Participant
    Status: Physician
    Posts: 2817
    Joined: 01/03/2017
    XXX Financial

    Click to expand…

    I hear that’s a great credit union for strippers and porn stars.

    “But investing isn’t about beating others at their game. It’s about controlling yourself at your own game.”
    ― Benjamin Graham, The Intelligent Investor

    #200793 Reply
    Avatar Tim 
    Participant
    Status: Accountant
    Posts: 3032
    Joined: 09/18/2018

    You have a fixed rate mortgage.
    HELOC is variable rate.

    Moving money to payoff principal reduces your balance.
    Keep paying your credit card bills.

    No system creates more principal payments. Just decide how much you can afford.

    #200797 Reply
    Avatar adventure 
    Participant
    Status: Spouse
    Posts: 1183
    Joined: 10/24/2016
    Thoughts? Has anyone heard of the All in One Mortgage?

    Click to expand…

    I’d keep a 30y fixed at 4.125% if I were you.

    I’d also read this:

    https://www.whitecoatinvestor.com/mortgage-acceleration-really-work/

    My read, if you pay more, you pay it off faster. HELOC trickery isn’t much help. Also, I can’t imagine they are going to get you rate lower than 5% on the HELOC.

    #200799 Reply

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