Loan Officer | NMLS #1101811
Branch NMLS #1655086
Posted On February 19, 2019
Investing in real estate is one of the most predictable investments you can make. Unlike riskier investments like the stock market, real estate almost always tends to appreciate. Most real estate investors will finance their investment, at least initially, with a mortgage. Using the right mortgage financing for your investment property can help you increase your return even more.
The All In One Loan by CMG Financial is the nation’s first off-set mortgage. It was designed to help borrowers with good credit and consistently positive cash flow reduce the cost of mortgage interest over the life of the loan, and in some cases, pay off the mortgage faster. The All In One Loan combines the borrower’s mortgage and checking account into one dynamic instrument that applies all deposits to loan principal first, lowering the balance, and thus the mortgage interest. Borrowers will retain access to their money, through a home equity line of credit, and the All In One loan functions just like a checking account with debit cards, ATM access, and automatic bill pay.
The All In One Loan is now available for investment properties too. In addition to using your tenant’s rent to pay down the mortgage, all of your additional earned income like your monthly paychecks plus any idle savings will be applied to the loan principal balance. You’ll still have access to all funds and be able to withdraw from the account whenever you need. With the All In One Loan you can accelerate total ownership of your investment property and even buy additional properties sooner, with your savings.
“There’s obviously a plethora of loans you can get, and I just think that this loan gives you the most flexibility,” commented Kevin Kieffer, Real Estate Broker and All In One Loan borrower. When you pay a traditional loan, on your own home or on an investment property, you are building equity, but you cannot access that equity without a cash-out refinance or a home equity line of credit. Every time you refinance you are incurring the closing cost of another loan origination. With the All In One Loan you retain access to your valuable home equity throughout the life of the loan and when you don’t need to use the equity, you are putting it to work for you. If you receive a bonus, inheritance, or other lump sum, you can deposit the funds into your mortgage, lower your principal balance, reduce the cost of mortgage interest, and still withdraw some of it when you need it.
In a rising rate environment, it’s important to remember it’s not the rate of interest that you pay on your mortgage loan, but the amount of interest. Obtaining a low rate on a 30-year fixed-rate mortgage for a home or investment property, may mean a lower monthly payment, but over time most of that cost will be mortgage interest. Using an All In One Loan you can adjust your payments according to your cash flow, and still pay less mortgage interest over time.
If you have any questions about using the All In One Loan to finance your investment property, please let me know.