Mortgage Question

Cirira

Little background

My wife and I are considering a move to Colorado and are working with a realtor and a mortgage broker. We have a 15 year fixed mortgage on our current house.

The mortgage broker in Colorado showed us the traditional 30 year and 15 year fixed options and then showed us a product called an All in One loan. It sounds similar to a HELOC but not quite the same thing. Does anyone here have any insight into an All in One loan? It sounds good to me but almost too good to be true.

bowen

Yeah it's essentially a HELOC meets mortgage in one, the more you pay the more access to HELOC you have based on the equity.

The downside to this is you're front loading even more mortgage interest at the beginning of the mortgage. So if you are the kind of person who pays more principal when they've got extra money, this is the way to make sure they make as much money off you as they can. Also be weary of any early payment penalties. They sometimes sneak them in, specifically because it fucks with their benefits.

zepherin

It's a combination ARM and HELOC. I don't know if they have a fixed product, my mortgage broker listed it as an option followed immediately with you do not want that. I trusted him and did not ask any further questions on why I did not want it. I assume it's because they aren't as regulated as FHA and traditional mortgages. Mortgage companies love to bundle a bunch of things together and claim it's a new product so it only has to follow very loose regulations and they can sneak in all kinds of fees.

Cirira

Thanks Zepherin and Bowen. This was my suspicion as well honestly but I wasn't entirely certain.