All-In-One Mortgage


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mortgage are put toward paying the mortgage, but instant liquidity can still be achieved, because cash can be withdrawn in the form of a home equity loan.

BREAKING DOWN '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.

  1. Checking Account

    A transactional deposit account held at a financial institution ...
  2. Home-Equity Loan

    A consumer loan secured by a second mortgage, allowing home owners ...
  3. Offset Mortgage

    A type of mortgage that involves blending a traditional mortgage ...
  4. Conventional Mortgage

    A type of mortgage in which the underlying terms and conditions ...
  5. Home Equity

    The value of ownership built up in a home or property that represents ...
  6. Encumbrance

    A claim against a property by a party that is not the owner. ...
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