Loan Officer | NMLS #194146
Branch NMLS #1194581
Posted On December 13, 2017
As a whole, the mortgage industry has largely stopped innovating. In fact, the 30-year fixed-rate mortgage is a byproduct of the Great Depression. As a method to kickstart the economy, lenders developed this type of financing to make homeownership achievable for Americans of all income brackets, by simply adding decades to the repayment schedule. And while the fixed-rate mortgage hasn’t changed since, arguably, the needs of homeowners has. In many cases, other types of mortgage financing could be better suited to fit the borrower’s financial profile, like CMG Financial’s All In One LoanTM.
With a traditional fixed-rate mortgage, payments are applied toward interest primarily first. Hundreds of thousands of dollars of household resources are consumed by mortgage interest over the term of a loan leaving little to fund other important financial needs such as saving for retirement or a child’s college education. With the All In One LoanTM, it’s the opposite. Payments are applied toward principal first reducing the cost of monthly mortgage interest. In addition, the All In One LoanTM bundles the borrowers home financing needs with personal banking functionality into one account.
Paychecks, as well as any other idle funds, can be deposited directly into the All In One LoanTM which immediately lowers their daily principal balance by an equal amount. The lower their daily principal balance, the less monthly interest they are charged. Borrowers can access their funds at any time and pay regular bills and expenses through the full-service checking account features like normal. But with the All In One LoanTM those valuable income dollars are maximized and used to save borrowers tens of thousands in mortgage interest payments instead of sitting idle, earning little to no interest at all.
As a result of All In One LoanTM financing, borrowers can pay-off years earlier, access equity dollars without refinancing and reduce the total price of their home signifcantly. It truly is The Smarter Way To Borrow®.