# All In One Loan vs HELOC vs Extra Payments (2026) > I ran the same three households through an All In One loan, a HELOC strategy, and extra payments. Here's when each one wins, with the math and sources. Canonical HTML: https://acceleratedstrategies.com/blog/all-in-one-loan-vs-heloc-vs-extra-payments Markdown twin: https://acceleratedstrategies.com/blog/all-in-one-loan-vs-heloc-vs-extra-payments.md Author: sam@acceleratedstrategies.com Published: 2026-11-05T23:21:53.017+00:00 Updated: 2026-11-06T04:37:58.83094+00:00 **Short answer:** It depends mostly on your current mortgage rate and how much cash you have left over each month, not on the product. When I ran the same three hypothetical households through all three options: - **With a low fixed mortgage rate, extra payments won.** Replacing a 3% mortgage with a line of credit near 7% cost far more interest. - **With a new mortgage at today's rates, the options landed close together.** A second-lien HELOC saved a few thousand dollars compared with sending the same cash straight to principal, before closing costs. - **An All In One or first lien sweep loan only won when its rate was close to the mortgage rate it replaced.** Above roughly 7.4% to 7.5% in my model, extra payments came out ahead. - **The monthly surplus did most of the work.** The choice of tool changed the result far less than whether the extra cash existed. I compare extra payments and the HELOC strategy with the same cash flow step by step in my video: *Disclosure: I co-founded Accelerated Strategies. We teach HELOC-based payoff strategies, and we're not a bank.* ## How does each option work? ### Extra principal payments You keep your existing mortgage and add money to principal each month, or make biweekly payments. - **No rate risk.** A fixed rate stays fixed. - **Nothing new to open.** No application and no closing costs. - **The tradeoff is liquidity.** Once money goes into the mortgage, you can't get it back without a new loan or a cash-out refinance. ### Second-lien HELOC strategy You keep your mortgage and open a HELOC beside it. The CFPB notes that a HELOC on a home that already has a mortgage is a second mortgage, and that HELOCs usually have adjustable rates. - **Send a chunk.** Draw a lump sum from the HELOC and pay it to mortgage principal. - **Run your cash flow through the line.** Paychecks go in, bills come out, and that lowers the HELOC's average daily balance. - **Repeat** once the line is paid back down. ### All In One loan or first lien HELOC The line of credit replaces your mortgage. CMG Financial describes its All In One loan as the "nation's first transactional offset type-mortgage program." Deposits lower your principal, the funds stay available to you, and interest is calculated on your average daily balance. A CMG loan officer, Ricky Khamis, describes it as a variable rate set from an index plus a margin that is "typically priced above a comparable thirty-year fixed rate." He also says the credit limit can step down over time. Other lenders offer first lien HELOCs with similar mechanics. I explain why I usually prefer a second-lien setup in [first lien vs second lien HELOC](https://acceleratedstrategies.com/blog/first-lien-vs-second-lien-heloc). ## All In One loan vs HELOC vs extra payments side by side | | Extra payments | Second-lien HELOC | All In One or first lien HELOC | | Keep your current mortgage rate? | Yes | Yes | No, the line replaces it | | Rate type | Your mortgage rate, often fixed | Variable on the HELOC portion | Variable on the whole balance | | Access to your money | Low | Up to the HELOC limit | Up to the line limit | | Can access be reduced? | Not applicable | Yes, a lender can freeze or reduce a HELOC in some cases | Yes, and some limits step down on a schedule | | New application and closing costs | None | Yes, though some lenders cover them | Yes, it's a full refinance | | Effort | Lowest | Highest, you manage chunks and timing | Medium, the sweep is automatic | | Biggest risk | Lost liquidity | Rate increases, overspending, a frozen line | Rate increases on the whole balance, overspending | ## The math: three hypothetical households These are **hypothetical households I built to show how the options behave, not clients and not a prediction.** The payoff months below are a math illustration for comparing tools, not a promise of how fast you'll pay off your home. Your numbers will be different. ### Household assumptions | | Scenario 1: new mortgage, steady income | Scenario 2: existing 3% mortgage | Scenario 3: new mortgage, thin margin | | Mortgage balance | $300,000 | $300,000 | $300,000 | | Mortgage rate and term | 7.24%, 30 years | 3.00%, 30 years | 7.24%, 30 years | | Monthly principal and interest | $2,044.49 | $1,264.81 | $2,044.49 | | Monthly take-home income | $10,000 | $10,000 | $8,500 | | Monthly living expenses (not counting the mortgage) | $6,000 | $6,000 | $6,000 | | Monthly surplus after the mortgage payment | $1,955.51 | $2,735.19 | $455.51 | | HELOC limit (second-lien option) | $30,000 | $30,000 | $15,000 | Every option gets exactly the same income and expenses each month. The only thing that changes is where the money sits. ### How I calculated it - **Mortgage payment:** the standard amortization formula, payment = P × i ÷ (1 - (1 + i)^-360), with i as the annual rate ÷ 12. - **Interest on a line:** income arrives on the 1st and spending happens evenly through the month, so the average daily balance is (starting balance - income) + (spending ÷ 2). Monthly interest is that average balance × rate ÷ 12. - **Extra payments:** the mortgage gets its normal payment plus the whole surplus each month. - **Second-lien HELOC:** whenever the HELOC is at zero, draw the full limit and pay it to mortgage principal. All income goes into the HELOC, and living expenses plus the mortgage payment come out of it. - **First lien sweep:** the whole balance is one line. All income goes in and all living expenses come out. - **Not modeled:** closing costs, annual fees, taxes, and rate changes beyond the stress test. Leaving out closing costs **favors the HELOC options**, since extra payments have none. ### Results | | Extra payments | Second-lien HELOC (7.36%) | First lien sweep (7.25%) | First lien sweep (8.25%) | | **Scenario 1** total interest | $100,582 | $96,158 | $95,072 | $115,884 | | Scenario 1 months to zero | 101 | 100 | 99 | 104 | | **Scenario 2** total interest | $32,639 | $34,687 | $95,072 | $115,884 | | Scenario 2 months to zero | 84 | 84 | 99 | 104 | | **Scenario 3** total interest | $235,042 | $225,075 | $221,724 | $311,238 | | Scenario 3 months to zero | 215 | 211 | 209 | 245 | For comparison, the baseline with no extra payments is 360 months and $436,018 of interest at 7.24%, or $155,332 at 3%. Scenario 2's sweep numbers assume you refinance the 3% mortgage into the line at the stated rate. ### Breakeven and stress test - **Breakeven sweep rate.** Against extra payments on a 7.24% mortgage, the first lien sweep stopped saving money at about **7.53%** in Scenario 1 and about **7.43%** in Scenario 3. - **HELOC rate stress.** At 9.36% for the whole payoff, the second-lien HELOC came to $98,676 of interest in Scenario 1 and $228,077 in Scenario 3. That's still slightly less than extra payments, because only the HELOC portion carries the variable rate. - **A first lien rate rise hits harder.** The whole balance is variable. Going from 7.25% to 8.25% added about $20,800 of interest in Scenario 1 and about $89,500 in Scenario 3. ## When do extra payments win? Extra payments are the better choice when: 1. **Your mortgage rate is low and fixed.** In Scenario 2, extra payments beat the second-lien HELOC by about $2,000 and beat a first lien sweep by more than $60,000. Don't trade a low fixed rate for a higher variable one. 2. **Your surplus is small or irregular.** A HELOC strategy needs money left over to work with. If that number is thin, simple is safer. 3. **You'd be tempted to spend from an open line.** Discipline is the engine of every HELOC strategy. 4. **You want zero rate risk and zero closing costs.** I'm not here to say the HELOC strategy wins every time. I've seen plenty of cases where extra payments just make more sense. What extra payments can't give you is access to that money in an emergency, and that's where a HELOC earns its keep. More in [should I make extra mortgage payments](https://acceleratedstrategies.com/blog/should-i-make-extra-mortgage-payments). ## When does a HELOC or All In One make more sense? - **Your mortgage rate is close to today's HELOC rates**, so you're not giving up a cheap rate. - **You have a steady, meaningful surplus** and income that sits in the account before it's spent. - **You want liquidity** for emergencies or investments while paying down your home. - **For an All In One or first lien HELOC specifically:** your quoted rate is close to your current mortgage rate, and you're comfortable with your whole balance on a variable rate. Why can a higher-rate HELOC still come out ahead? Because of how the interest is calculated. I explain the difference in [mortgage interest vs HELOC interest](https://acceleratedstrategies.com/blog/mortgage-interest-vs-heloc-interest-whats-the-difference). ## Is an All In One loan a good idea? It can be, for the right borrower. The CMG loan officer I cited says it fits people with "float," meaning cash that sits in the account before it's spent. He also says it should be avoided by people with thin reserves, people a rate rise would hurt, people who would spend the line, and people who expect to sell within two to three years. I agree with that list. ## Fair cautions for any of these - **Your home is the collateral.** Spending the line on lifestyle can leave you with more debt than you started with. - **Rates can rise.** HELOCs usually have adjustable rates. Navy Federal's disclosure, for example, lists a maximum APR of 18%. - **Lines can be frozen or reduced.** A bank can freeze a HELOC or lower its limit if your home's value drops significantly. Keep an emergency fund outside the line. - **Product rules vary.** Availability, draw periods, and fees differ by lender and state. Navy Federal's HELOC, for example, isn't offered in Texas. - **If you're struggling with payments,** the CFPB recommends talking to a HUD-approved housing counselor before taking on home equity debt. ## Decision checklist 1. What's my current mortgage rate compared with today's HELOC rates? 2. What's my reliable monthly surplus after every bill? 3. Do I have an emergency fund outside any credit line? 4. Could I handle my rate rising two points? 5. Will I treat the line as a payoff tool, not a spending account? 6. How long will I stay in the home? 7. What's the real quoted rate and margin, and how does it compare with my breakeven? 8. What are the total closing costs, annual fees, and draw rules? ## Frequently asked questions **What is an All In One loan?** It's a first lien line of credit with a checking account built in, offered through CMG Financial. Deposits lower the principal, the money stays available to you, and interest is charged on your average daily balance. The rate is variable. **Is an All In One loan better than a HELOC?** Not automatically. An All In One replaces your whole mortgage with a variable-rate line, while a second-lien HELOC lets you keep your existing mortgage rate. In my model, the first lien option only won when its rate was close to the mortgage rate it replaced. **Is a HELOC strategy better than extra mortgage payments?** It depends on your rate and your surplus. With a 3% mortgage, extra payments won in my model. With a new 7.24% mortgage, the HELOC strategy saved a few thousand dollars before closing costs. **Should I refinance my 3% mortgage into an All In One loan?** In my model it cost far more interest than making extra payments on the 3% loan. Get real quotes and run your own numbers, but a low fixed rate is hard to beat. **What happens if my HELOC is frozen?** You'd still owe the balance, but you might not be able to draw more. That's why an emergency fund outside the line matters. ## Run your own numbers The scenarios above are only examples. **Download our free calculator** and plug in your real income, expenses, and rates to see how a HELOC strategy compares with extra payments for you. [Get the Free Calculator](https://acceleratedstrategies.com/calculator-download) ## Sources (last verified Nov 2026) - CFPB, HELOC vs home equity loan: [https://www.consumerfinance.gov/ask-cfpb/what-is-the-difference-between-a-home-equity-loan-and-a-home-equity-line-of-credit-heloc-en-247/](https://www.consumerfinance.gov/ask-cfpb/what-is-the-difference-between-a-home-equity-loan-and-a-home-equity-line-of-credit-heloc-en-247/) - CFPB HELOC booklet: [https://files.consumerfinance.gov/f/documents/cfpb_heloc-booklet-web.pdf_202610.pdf](https://files.consumerfinance.gov/f/documents/cfpb_heloc-booklet-web.pdf_202610.pdf) - OCC HelpWithMyBank, HELOC freeze or reduction: [https://www.helpwithmybank.gov/help-topics/mortgages-home-equity/home-equity-loans-lines-of-credit/heloc-freeze.html](https://www.helpwithmybank.gov/help-topics/mortgages-home-equity/home-equity-loans-lines-of-credit/heloc-freeze.html) - CMG Financial, All In One: [https://www.cmgfi.com/all-in-one](https://www.cmgfi.com/all-in-one) - Ricky Khamis (CMG Financial loan officer), All In One Loan: [https://rickykhamis.com/all-in-one-loan/](https://rickykhamis.com/all-in-one-loan/) - Investopedia, All In One mortgage: [https://www.investopedia.com/terms/a/all-in-one-mortgage.asp](https://www.investopedia.com/terms/a/all-in-one-mortgage.asp) - Freddie Mac PMMS: [https://www.freddiemac.com/pmms](https://www.freddiemac.com/pmms) - Bankrate HELOC rates: [https://www.bankrate.com/home-equity/heloc-rates/](https://www.bankrate.com/home-equity/heloc-rates/) - Navy Federal Credit Union HELOC: [https://www.navyfederal.org/loans-cards/equity/heloc.html](https://www.navyfederal.org/loans-cards/equity/heloc.html) — Source: Accelerated Strategies (https://acceleratedstrategies.com)