All-In-One Mortgage

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DEFINITION of 'All-In-One Mortgage'

A mortgage loan that combines the features of a checking account, a home equity loan and a mortgage in order allow depositors to reduce the amount of interest paid on their mortgages. Any deposits made into the savings account portion of the all-in-one mortgage are put toward paying the mortgage, but instant liquidity can still be achieved, because cash can be withdrawn in the form of a home equity loan.

INVESTOPEDIA EXPLAINS 'All-In-One Mortgage'

The all-in-one mortgage attempts to to mimic the structure of an offset mortgage. While this type of mortgage can help homeowners reduce interest expenses, only individuals who can stick to a budget should use an all-in-one mortgage. For those who lack the discipline to stick to a budget, this arrangement can escalate debt if they draw too much equity out of their homes.

RELATED TERMS
  1. Checking Account

    A transactional deposit account held at a financial institution ...
  2. Conventional Mortgage

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  3. Home-Equity Loan

    A consumer loan secured by a second mortgage, allowing home owners ...
  4. Home Equity

    The value of ownership built up in a home or property that represents ...
  5. Offset Mortgage

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  6. Forbearance

    A temporary postponement of mortgage payments.
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