Build Equity Daily, Not Monthly
The Wealth Builder HELOC was designed for today’s homeowner and home buyer; providing the financing needed while accelerating the pay-off of the loan balance and interest savings at the same time. Whether you plan to pay off the home to a zero balance, or want to increase your equity growth to be used for a future move, the Wealth Builder is the financial genius tool to help you accomplish your goals quicker.
What is the Wealth Builder HELOC ?
Wealth Builder HELOC is a first-lien HELOC product that combines a mortgage and a checking account into one. It is structured as an open-ended line of credit that allows borrowers to pay off their mortgage faster, reduce interest, and access equity on demand.
For most of us, our mortgage is our largest expense; costing us decades in interest payments that slow progress with other important financial goals. But it doesn’t have to be that way.
The Wealth Builder was designed for today’s homeowner and home buyer; providing the financing needed for your home while also accelerating pay-off of the loan balance and massive interest savings.
Despite low interest rates, mortgages cost substantial amounts of interest, not to mention, these costs delay progress with building home equity. The Wealth Builder is a solution to both obstacles because it combines the two into one fluid financial instrument.
The Wealth Builder puts your income to work to lower daily mortgage principal and monthly interest costs.
Simply put: Your mortgage and bank account are combined into one account.
How It Works
Unlike a traditional mortgage which is amortized over the length of the term, an Wealth Builder’s interest is simple and is calculated daily on the outstanding principle. Instead of letting your cash in your checking and savings accounts sit somewhere separately earning little to no interest, in a Wealth Builder, it’s used to keep the balance down on the outstanding principle owed. When you deposit your paychecks into the account, it is applied to principle first thus keeping the interest costs down as effectively as possible. As you pay your bills and use your account for your normal monthly needs, the balance creeps back up. At the end of the month, the “mortgage payment” is the sum of each day’s interest added together.
Highlights:
- Nightly sweep account integration to apply deposits directly to principal
- 30-year term
- No amortized schedule — borrower controls the payoff timeline
- Transaction Types: Purchase, Rate & Term Refinance and Cash Out Refinances
- Occupancy: Primary, Second homes and Investment
1. Deposit your paychecks & liquid savings into the Wealth Builder bank account
All deposits are applied directly to the loan principal which automatically lowers each day’s interest cost and the monthly interest payment amount.
2. Pay your bills and expenses as normal
Your money is kept securely available 24/7 for regular spending needs. ATM cards, checks, online and mobile banking all come standard with each loan.
3. Payoff your mortgage years sooner & save tens of thousands of dollars
Your cash works hard for you saving interest and paying the balance off years in advance of a traditional mortgage while allowing you to live more securely.
It’s not magic, it’s just math !
Frequently Asked Questions
o How does the Wealth Builder help borrowers save money?
• Reduces daily interest accrual via nightly sweep of deposits
• No mandatory amortized payment schedule – borrowers control their payment strategy
• Early payoff is possible – as little as 9 years (even quicker in some situations) vs. 30 years
traditionally
• Available credit remains accessible for future draws
o What happens when I make a deposit into the checking account?
Deposits are swept nightly to the HELOC-side of the account and applied to loan principal. This makes higher use of idle money in order to save monthly interest expenses on the mortgage, before it’s spent.
o How can I access my money to pay bills?
Deposited cash and home equity dollars become one and remain available for use 24/7 over the 30-year term of the HELOC. Money can be accessed through the ATM-VISA cards, by writing checks or paying bills and transferring funds online through the Wealth Builder bank portal and your mobile device.
o What are the terms of the HELOC?
The Wealth Builder is a 30-year home equity line of credit with an integrated sweep-checking account. The credit limit is established in underwriting and is based on borrower qualifying characteristics. The limit remains unchanged for the first ten years then steps-down each month by 1/240th for the remaining 20 years until it reaches $0.
o How fast can I pay my loan off?
It is up to you! There is no payment schedule to hold you back. Wealth Builder HELOC clients typically eliminate more than 10% of their principal balance annually and are on track to be paid off in half the time or less compared to a traditional mortgage.
o Can I purchase a home with it?
The Wealth Builder can be used to purchase or refinance a primary, secondary or vacation home, as well as investment properties.
o Can a Wealth Builder be applied to a free-and-clear property?
Generally, no, unless the minimum draw requirement of $150,000 is met.
o Which banks service the Wealth Builder account?
The Wealth Builder lender has partnered with specific banks for many years that provide the Wealth Builder loan account features and service the account. Together, the companies manage your needs to help ensure program success.
Get started today!
Fill out the questionnaire on this page to start a discussion about your mortgage needs today!
