馃攳
Pay Less In Mortgage Interest: All-In-One Loan - with Caeli Ridge - YouTube
Channel: Get Rich Education
[0]
Well, hello "Get Rich Education" nation. It's
Keith Weinhold here. I'm in Portland,
[3]
Oregon at the offices of Ridge Lending
Group, the company that's created more
[7]
financial freedom for real estate
investors than any other mortgage lender
[10]
in the entire nation, and I'm with
president Caeli Ridge.
[20]
Caeli: Hi, Keith.
Keith: Caeli, you know, you have offered an all-in-one
[25]
loan product for real estate investors.
People can also use it on their primary residence, and it
[30]
operates much like a home equity line of
credit. Tell us about the all-in-one loan.
[34]
Caeli: It is exactly a home equity line of
credit or a HELOC, more commonly found.
[39]
This is a very unique product that I'm
very excited to be offering to investors.
[43]
It's brand new to the marketplace. This
is a 30-year line of credit that you may
[49]
attach to your investment property.
It's been available for the primary for some time,
[55]
but this is the first time, as far
as I know, that investors can take
[58]
advantage of this first-lien HELOC.
The unique thing about this, it's twofold,
[62]
as far as I'm concerned, for the appropriate
borrower or investor, it saves a
[69]
tremendous amount in interest paid if we
look at this in comparison to a
[74]
30-year closed-ended mortgage versus
this 30-year open-ended line of credit...
[80]
Keith: And the 30-year closed-ended mortgage,
that's just what you probably have,
[83]
a 30-year fixed amortizing loan.
Caeli: Exactly, right, so in comparing the two
[88]
side-by-side, the interest accrual that
comes in that fully amortized 30-year
[93]
fixed loan is almost always double,
sometimes more than what the principal
[98]
amount borrowed initially. With the first
lien HELOC you have total autonomy, total
[104]
flexibility, and for the again the right
consumer, the right borrower that has
[108]
some discretionary income typically 10%
of the total amount of income that you
[113]
have every month left in against the
line, the interest accrual or the
[117]
compounding effect of that is greatly
reduced saving a huge amount of interest
[122]
over time, but for me although that's
fantastic, it's secondary to the
[126]
flexibility that this affords. I'm so excited about that piece. You become your own bank effectively.
[132]
Keith: So, with the
conventional 30-year fixed amortizing loan
[135]
like you probably have, once you pay
down principal if you want to get that
[139]
money back, well it's like you're trying
to go against a one-way street, because
[143]
once you pay down principal if you try
to get the money back out again and use it,
[147]
now you have to prove that you
qualify again, now you might have to pay fees,
[152]
and it just is not nearly as flexible as
[155]
what this HELOC is like where you can
draw it down and bring it back and draw
[159]
against it and so on. Tell us a bit more
about the risk associated with this
[164]
all-in-one loan that operates like a first lien HELOC.
Caeli: You know, I think that
[168]
the risk is really going to be specific
to the individual and their
[173]
discretionary income. For those
individuals that, let's say, make $5,000 a month,
[177]
and at the end of the month, day 30,
maybe they've got $50.00 left over this
[180]
is not the product for them. that
Keith: Yeah.
[182]
Caeli: That discretionary income, generally speaking,
[184]
at about 10% is what makes this work, so
if there's a risk I think that it is
[189]
discipline, probably for the individual,
you guys know how your spending habits
[193]
are, what those look like, but that would
be the only risk as far as I can see
[198]
that would attach to this
particular loan product.
[200]
Keith: Because a conventional loan is what we might say
front-loaded with most of your payments
[205]
going to interest rather than principal,
a HELOC or this all-in-one loan is
[210]
structured differently such that even if
you pay a higher interest rate with the
[214]
all-in-one loan than you do with your
conventional one, you might actually be
[218]
paying less in interest with the way
that is structured, and you actually have
[222]
a tool, a simulator tool, where you can
compare your current loan terms with the
[228]
all-in-one, and just how that would look
so you can see what your interest savings
[231]
would be. Tell us about that simulator.
Caeli: It's so great, an interactive simulator
[235]
can be found on our website RidgeLendingGroup.com
[238]
This will allow you to input very quickly,
[240]
there's just a few
forms to fill in, and the results will
[243]
show you exactly how much interest
savings you can expect, there's breakeven
[247]
rates in terms of how much you'll be
saving in interest for this versus the
[251]
30-year fixed, a whole results page of
all the detail that you could possibly
[255]
imagine on this product that really kind
of drives the message home.
[260]
Keith: And, I know you can go up to 80% loan to
value on a primary residence or 70% to 75%
[264]
with this all in one loan with
income property. So, from here at
[268]
Ridge Lending Group in Portland, Oregon for
Caeli Ridge. I'm Keith Weinhold.
[271]
Thanks so much for stopping by.
Most Recent Videos:
You can go back to the homepage right here: Homepage