Both programs are 1st Position Home Equity Lines of Credit (HELOC), but function very different than traditional financing or a traditional HELOC. Instead of interest being calculated monthly, like traditional financing, interest is calculated DAILY with the Equity Builder and All In One Loan. This function has the potential to save you tens, if not hundreds, of thousands of dollars in interest over the life of the loan compared to traditional financing.

An additional benefit of the Equity Builder and All In One Loan is that your mortgage and checking are combined and work together. When you understand this, you will think, “why haven’t we always done that?”

In traditional financing, you have a mortgage costing you 5 to 7%. You have a savings account earning you .5 to 2%. It’s your rainy-day fund you have “just in case”. In that scenario, the banks win because they have loaned you money at a higher rate than they have borrowed your money. But with the Equity Builder and All In One Loan, you win! Your mortgage, or Line of Credit, is combined with your checking and savings, and you only pay interest on the balance.

For example, you have a $500,000 mortgage at 6% with P&I payment of $2997. In year 1, an average of $2486 goes to interest. You also have a savings account with $50,000 in it, earning you 1%, or $500 a year. With the Equity Builder or All In One Loan, we combine the two and you would only pay interest on $450,000, saving you over $211 per month. That is approximately $2500 vs $500, a net gain of $2000!

And here’s the beauty of the Equity Builder and All In One…you have access to your equity for 30 years! Your mortgage is your SMART rainy-day fund!