Our loan officer brought up the option for an "all in one mortgage." From what I understand, the mortgage account is kind of like a HELOC except that it acts as a savings/checking/credit card account. Does anyone have experience with this?
My understanding is:
If you put your savings in the account. That money is counted toward the principle of your mortgage, which would reduce the interest accumulated each day. In our case, we would have access to the full amount of the loan until year 10, which is when the available loan amount decreases on a monthly basis. The benefit is that you have access to your money in case a need arises along the way while prepaying the mortgage instead of the principal being locked in equity. The loan could be closed at any time when the savings value matches the amount of principle on the loan. From what I understand, the interest rate would be higher on this loan and variable.