LOAN TYPE: HYBRID
POSITION: 1ST
RATE TYPE: Adjustable
PAYMENT TYPE: AMORTIZING
LOAN LIMITS: $850,000
LTV Limits: 90% LTV
INDEX: 1-Month Libor
TERM: 30 Yrs
Annual fee: $60

ADVANTAGES:
Because it works like a checking account, cashflow positive borrowers save in four ways:
• Regular deposits, such as income and short-term savings, drives down Offset Loan principal dollar-per-dollar.
• Borrowers don’t spend all of their money on living expenses on the same day. Instead, much of their deposited cash remains idle waiting to be spent for days, sometimes weeks. While cash waits to be spent in the Offset loan, it keeps their loan balance lower, for longer. Interest is calculated nightly on the lower principal balance which results into less daily interest.
• The money normally budgeted for a traditional monthly mortgage payment no longer needs to be spent. Those dollars are automatically used to keep the All In One Loan balance even lower.
• Extra cash that simply wasn’t needed as part of the borrower’s regular budget, also remains in the account, helping to keep the balance lower for even longer. The lower principal balance along with the interest saved, rolls over into each new month as a lower starting loan balance, which has a compounding effect on interest savings.
DISADVANTAGES:
• Higher Adjustable Rate