Quote:
Originally Posted by darklord700
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?
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Well that's just a one month snapshot though. 4k bi-weekly over the course of a year would mean $104,000 acting directly against your principal amount. That's a lot of money that interest wouldn't be calculated on, whereas it would be in a traditional mortgage, as you'd most likely have your income filtered through a checking account.
Continue that process year over year and you can see the benefits...