Buying a home is an exciting journey, but it comes with its share of expenses—one…
AIO – it’s just math, not magic
It’s just math, not magic!
Have you ever heard the phrase it’s just math, not magic? Well, that certainly applies to the “All In One – Principal First Loan”. You see, as with every financial scenario, there’s always some reward and an element of risk. Mortgages are no different. The reward most conventional mortgages offer borrowers is the ability to lock in their rate. But the risk is that it takes longer to pay down principal. The “All In One – Principal First Loan” was structured differently. The value of the interest rate matters less because it pays down principal more rapidly.
So when you have a 30 year fixed rate loan, I don’t know if you realize it or not, but you’re about 22 years into it before you’ve gotten halfway down to the end of your balance. Halfway, 22 years. With the all in one you could have your loan paid off totally in seven, eight, nine, 10 years, and still have the benefit of having that available cash for you to use for other things you need.
It’s also designed to reduce the risk to our lending partners. We achieve that by using one of the lowest and most predictable indices available, the one-month LIBOR The fully indexed rate also includes a margin of the borrower’s choice, competitive to conventional mortgage products. The one-month LIBOR has averaged about 4% since its adoption in 1986, and 3% lower than a 30-year fixed-rate mortgage. If it’s good for the banks, it’s good for America’s homeowners too.
One of the first things I would say to you is this could change your life. And what I mean by that is, again, mortgage debt is the biggest debt you’ll ever carry in your life. And if you have a way to get rid of that debt, what would you do with that extra income?
There is a better option. The “All In One – Principal First Loan” is a better option for consumers that are simply looking to eliminate a large portion of the interest cost. As you can see, the all-in-one, principal first loan or AIO could be the best loan option available in Colorado Springs. Give us a call today to let us know how we can help at 844-719-5363
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