All in One Mortgage – Definition

Cite this article as:"All in One Mortgage – Definition," in The Business Professor, updated April 16, 2020, last accessed August 13, 2020, https://thebusinessprofessor.com/lesson/all-in-one-mortgage-definition/.

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All-In-One Mortgage

An all-in-one mortgage is a loan that allows for the combination of mortgage and savings by borrowers. This type of loan reduces the interest payment that borrowers make on their mortgage but also ties the home loan to the savings of borrowers. An all-in-one mortgage offers consumers their home loans (mortgage) and savings in one package. This type of mortgage requires the combination of a checking account and a home equity loan.

A Little More on What is an All-In-One Mortgage

An all-in-one mortgage allows borrowers to deposit money into their savings account, while payments made into this account are channeled towards paying the mortgage, account owners can also access the remaining balance for withdrawal. Since an all-in-one mortgage ties, the home loan obtained by the borrower to their savings, deposits are used to pay down the principal.

Although old-fashioned, an all-in-one mortgage functions like a home equity line of credit (HELOC) or an offset mortgage. In its new form, an all-in-one mortgage combines a first mortgage and HELOC as a single mortgage. All-in-one mortgages have lower interests and reduce fees that borrowers could have incurred in the process of refinancing.

Homeowners can access the balance in their equity in an all-in-one mortgage through the transfer of the balance to a traditional savings or checking account as the case may be. They can also write a check directly from the account.

Drawbacks of All-in-One mortgage

Despite that an all-in-one mortgage offers reduced interest rates and eliminates certain fees associated with refinancing, it has some drawbacks. This type of loan also offers borrowers a simplified filing process. The major drawbacks of an all-in-one mortgage are that a homeowner has endless access to draw on equity as it builds up, without fully paying off their mortgage.

What is a Mortgage Refinancing

Mortgage refinancing is a method through which homeowners change the terms on their existing loan by taking another mortgage. Several reasons are responsible for a mortgage refinancing but the major ones include benefitting from lower interest rates, to remove a partner from the home and others.

To do mortgage refinancing, a homeowner must have their income reviewed to access their credit quality (rating) and whether it matches the changes they want to make on the existing mortgage. The review will be done by a mortgage broker or a loan agent. Mortgage refinancing also requires paperwork, but not as must as the first mortgage.

Reference for “All-In-One Mortgage”

https://www.investopedia.com/terms/a/all-in-one-mortgage.asp

https://www.investopedia.com › Personal Finance › Mortgages

https://www.mortgage101.com/article/what-is-all-in-one-mortgage

https://allinonemortgagelenders.com/

https://www.americanfinancing.net/programs/all-in-one-mortgage-heloc

Academics research on “AllInOne Mortgage”

Mortgage‐Backed Futures and Options, Ling, D. C. (1993). Mortgage‐Backed Futures and Options. Real Estate Economics, 21(1), 47-67. This paper empirically tests valuation models for the mortgage‐backed futures‐options contracts that traded on the Chicago Board of Trade (CBOT) from June of 1989 until March of 1992. A simple contingent‐claim model is shown to produce call option values on mortgage‐backed futures (MBF) contracts that are unbiased estimates of actual futures‐options prices. The ability of the MBF contract to hedge positions in current coupon Government National Mortgage Association (GNMA) securities relative to the effectiveness of cross‐hedging GNMA positions with T‐note and T‐bond futures contracts is also examined.

All Together Now, Griffin, S. (2002). All Together Now. DAIRY INDUSTRIES INTERNATIONAL, 67(1), 29.

Consolidated checking account and credit line, Iobbi, R. M. (2013). U.S. Patent Application No. 13/554,916.

Mortgage markets and cultures of consumption, Cook, N., Smith, S. J., & Searle, B. A. (2009). Mortgage markets and cultures of consumption. Consumption, Markets and Culture, 12(2), 133-154. Although consumption studies now dominate large areas of social and cultural research, relatively little attention has been paid to the consumption of financial products and services. However, the consumption of mortgages moved to centre‐stage in the early twenty‐first century, as products that were once tightly rationed were more actively sold, and households were faced with an unprecedented array of borrowing options. Drawing from qualitative telephone interviews with a cross‐section of 150 UK home‐buyers, this paper explores the way households in a credit‐rich setting choose and use their mortgages. We argue that, notwithstanding the risks commonly and rightly associated with the financialization of domestic space, mainstream borrowers are often “at home” with their mortgage: they can generally navigate the mortgage maze and put their mortgage to work.

Human agency in a wireless world: Patterns of technology use in nomadic computing environments, Cousins, K. C., & Robey, D. (2005). Human agency in a wireless world: Patterns of technology use in nomadic computing environments. Information and Organization, 15(2), 151-180. The problems of nomadic computing users have been described as challenges presented by the interplay of time, space and context. However, theoretical accounts to date have not addressed all three aspects of nomadic computing in a single effort. We investigated how the practices of individual nomadic computing users in a large mortgage finance company changed after implementation of a nomadic computing environment. Although users experienced contradictory outcomes as they sought resolutions to the dilemmas posed by work and nonwork demands, all users reported effectiveness in their computing practices. We attribute their effectiveness to skilled use of technologies to control the boundaries between their personal and business social contexts. The variety of patterns of boundary control across nomadic workers in the study is explained using a theory of human agency that focuses on the temporal, spatial and contextual conditions facing actors as they engage with their nomadic computing environments.

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