Equity Builder Loans

Smarter home loans where payments go to principal first — reducing interest and accelerating equity.

How it works.

Equity Builder loan clients get a new 1st position Home Equity Line of Credit (HELOC) that is linked directly to a checking account. This checking account functions like a normal checking account. Deposits go in and bills are paid out. The difference is that every night, the HELOC sweeps the balance in the checking account and reduces the mortgage balance accordingly. This is when the magic happens, but it’s easier to explain it with an example:

  1. $500,000 is the starting loan amount, or in this case, the mortgage balance.

  2. On the 1st of the month, your job pays you $10,000 after all deductions, which is deposited into your checking.

  3. That night, the $10,000 is swept out of the checking as a direct principal reduction to the mortgage.

  4. The new mortgage balance is $490,000.

  5. The next day, a $1000 car payment gets paid.

  6. That night, the -$1000 is replenished in the checking account by the mortgage.

  7. The new mortgage balance is $491,000.

  8. That process happens every single day with deposits in and bills out.

  9. Here’s the magic of these Equity Builder loans: interest is calculated daily, as opposed to a traditional loan where you pay interest on the full $500,000 for 30 years.

  10. On the day the balance was $490,000, interest was only charged on the $490,000. When it went up to $491,000, you only paid interest on the $491,000. Both of those are less than $500,000.

  11. As that process happens each day and every month, the interest savings becomes significant, and equity is accelerated. In many cases, that savings and equity acceleration pays the mortgage off in 7-10 years.

  12. Here’s the cool thing…you didn’t change a thing with how you managed your finances. You didn’t make extra payments. All you did was utilize an Equity Builder loan and had your money start working for you.

Makes sense, right?

What banks don’t want you to know.

There’s a way to pay less interest on your mortgage and pay your house off faster.

Why wouldn’t banks want you to know that? Because it means you are paying them less money. It’s that simple.

To be clear, just because there is a way doesn’t mean everyone will qualify for it, or that it makes sense for everyone…right now.

But even if it doesn’t make sense now, everyone should absolutely know about it, because at some point it might. And when it does, it could save you tens, if not hundreds of thousands of dollars in interest and help you pay off your mortgage faster.

Savings are just the Start.

  1. Say GOODBYE to that low interest-bearing savings account

    With these loans being Home Equity Lines of Credit, you have full access to your equity for the life of the loan and no longer need a savings account. By immediately applying your savings account balance towards the equity line, instead of earning .5% to 1% on your savings, you are now paying less interest on your mortgage because the balance is lower.

    Let’s assume the rate on the Equity Builder loan is 6% and you have $50,000 in savings, earning 1%. That 1% only pays you $500 a year, but by reducing your mortgage by $50,000, you save $3000 in 1 year…6 times more! That is a NET savings of $2500! Now your money is working FOR you.

  2. Investment opportunities and future purchases

    Will you want to purchase another home in the future? Need to pay for college or a wedding? Or maybe you just come across a great investment opportunity. You can utilize the equity you have built up with the accelerated equity you have created. No need to get another loan or pull money from other investments.

  3. Building wealth

    Imagine your house is paid off in 15 years. What are you going to do with the money that used to be your mortgage payment? Let’s just say your financial advisor now has $3000 per month to invest at a 7% annual return. After 15 years (the additional time it would’ve taken to pay off a 30-year fixed) you would have over $900,000 in your investment account. So not only would have saved a significant amount of interest on your mortgage compared to the 30-year fixed traditional mortgage, but you also now have over $900,000 for retirement.

Qualifying minimums?

  • 10% down

  • 43% max Debt to Income ratio

  • DTI =<40%, a minimum of 10% of the line in reserves

  • DTI >40%-43%, a minimum of 15% of the line in reserves

Who is an Equity Builder loan typically best suited for?

  • Borrowers who save approximately 10% or more of net deposits per month. For example, if a borrower deposits on average $10,000 per month, a borrower who saves a minimum of $1000 per month should consider an Equity Builder loan.

If you meet the above minimums and want to see actual savings, run the Loan Simulator.

For additional questions, visit the FAQs page.

Want to see an example?
Click HERE for a Purchase example.
Click HERE for a Refinance example.

  • Image of a snowy Mountain range.

    The Basics.

    Equity Builder loans, also known as the All in One Loan or Equity Advancer, are variable rate, 30-year Home Equity Lines of Credit (HELOC) integrated with a “smart” checking account whose funds are used to daily drive down the outstanding balance of your mortgage.

    Scroll to the right to see how it works.

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    OFFSET LOANS

    Most homeowners have both a mortgage and several liquid accounts (savings or checking accounts, emergency fund, etc.) with available funds to pay their bills and provide peace of mind.

    Equity Builder loans combine your home loan with those accounts & uses those funds to offset what you owe on your mortgage, while still keeping those funds instantly available for immediate use, just as they were before.

  • Image of a mountain beside a lake.

    Makes Sense

    Since liquid accounts don’t usually generate any significant interest, using them to offset your mortgage—which is costing you real, daily interest—has the potential to rapidly lower your principal, thus saving you in interest costs, and it could pay down your home in a fraction of the time you would’ve otherwise.

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    CONSOLIDATE

    By consolidating your liquid accounts into Equity Builder checking accounts, you instantly lower the principal amount owed on your mortgage. Each time you deposit funds into this checking account, the entire deposit is immediately & automatically applied against the amount owed on your home, while still remaining accessible through the typical banking features you already employ.

    Borrowers can simply access their funds now from this new checking account to pay their bills.

  • Image of a Frasier Fir tree in the snow.

    PUT THEM TO WORK

    By moving money from a typical checking account into this checking account, you put those idle funds to work. Until you spend them, they are working to reduce mortgage interest, every day.

    Whatever funds are in excess of your monthly expenses are hard at work, paying down your mortgage, until they are withdrawn.

    Each time you make a direct deposit (or add funds from another account) a principal payment in that amount is being applied to your mortgage.

    That makes the Equity Builder loans remarkable in that principal is being paid first, and interest is being paid last.

    Since interest is calculated on the daily balance & only charged once at the end of every month, incoming deposits become principal payments, lowering the amount you’re paying interest on.

  • Image of a snowy tree.

    PRINCIPAL FIRST

    On most traditionally amortized mortgages, the payment is applied to interest first, and the amount of those interest charges is calculated based on the unpaid principal balance.

    Additionally, while discretionary principal payments can be made to reduce the principal, they won’t affect your monthly payment if it is a fixed-rate loan.

    Since the Equity Builder loans are a fluid repayment and not a fixed, scheduled repayment, the borrower’s excess funds are carried over each month, compounding the benefit to the borrower with increasing effect over time. Whereas traditional mortgages compound the interest charges, the mechanics of the Equity Builder loans allow you to actually compound your interest savings.

  • Image of a road winding through the mountains.

    THE MORE THE MERRIER

    Most clients will keep whatever current checking accounts they currently use, but move as many funds as possible into the Equity Builder’s checking account to maximize its effectiveness.

    The more funds that are in this checking account, the more you’ll save in interest charges, and the sooner you will have the mortgage entirely paid-off.

    Many borrowers who have this loan pay off their home in a fraction of the time they would’ve otherwise.

When thinking about interest rates, do not forget about the loan term.

Lower rates do not always equate to a lower cost of a loan over time.

Explain it again, but differently.

We get it: these loans are different. It may take a minute to wrap your hear around them. Here’s an illustrated explainer for how our equity builder loans work.

Anonymous Client

“If the Equity Builder makes sense for your situation and you qualify for it, it is a no-brainer.”

Franklin R.

“Aaron & his team made transitioning to this loan easy, clear & a financial benefit for my family.  Aaron's patience & commitment to ensuring we understood the product made it an enjoyable process. If you're serious about your financial future & positioning yourself in the most advantageous way possible, you have to explore this with Aaron..”

Amy S.

“We love our new loan and Aaron is wonderful to work with!”

Troy A.

“What a great experience learning from and working with Aaron. This is a unique and powerful tool that we are so grateful Aaron introduced us to!”

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