Quote:
Originally Posted by MillerTime GFG
The difference with the AIO is that your effective interest rate is going to be much lower than the nominal interest rate of prime + 0.50%, if you use it properly. The key is to get your savings and income working for you, and directly against your principal.
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I still don't quite get how this is works. So AIO is a HELOC account with a higher interest rate than the mortgage rate. Say your mortgage is $500K, so you pay higher interest with AIO on the $500K but you gain some interest savings by juggleing your paycheck ($4K bi weekly eg). The higher interest on the $500K will likely outweight the benefits of having $4K for two weeks in AIO, wouldn't it?