All In One Loan in Short Hills, NJ
Combine your mortgage and HELOC in one flexible loan. Avoid PMI with an 80-10-10 structure while accessing home equity from day one. Perfect for Short Hills buyers seeking financial flexibility and savings on mortgage insurance.
What is the All In One Loan?
The All In One Loan is a combo mortgage product that structures your home financing as two separate loans: a first mortgage at 80% LTV (avoiding PMI) and a HELOC at 10% LTV. You provide 10% as a down payment.
This 80-10-10 structure lets you avoid paying private mortgage insurance (PMI) while gaining immediate access to a home equity line of credit from day one—no waiting 6-12 months like with traditional HELOCs.
Key Benefits:
- No PMI: Save $200-$400/month by keeping first mortgage at 80% LTV
- Instant HELOC Access: Draw from equity immediately for renovations, emergencies, etc.
- Interest-Only Payments: Pay only interest on HELOC during draw period
- Single Closing: One closing process vs. two separate loans
How the 80-10-10 Structure Works in Short Hills
Fixed-rate conventional mortgage, no PMI required
Home Equity Line of Credit, interest-only during draw period
Your cash contribution at closing
PMI Savings: All In One vs Conventional
| Feature | All In One | Conventional (90% LTV) |
|---|---|---|
| Down Payment | 10% | 10% |
| First Mortgage | $1,200,000 | $1,350,000 |
| HELOC | $150,000 | $0 |
| Monthly PMI | $0 | $563/mo |
| Annual PMI Savings | $6,750/year | |
| HELOC Access | Day 1 | Not included |
HELOC Flexibility: What Can You Do with $150,000?
Kitchen Renovation
$60,000
Upgrade your kitchen without a separate renovation loan
Emergency Fund
$45,000
Keep liquid funds available for unexpected expenses
College Tuition
$45,000
Pay for education expenses as needed
All In One vs Other Financing Options
| Feature | All In One | Conventional | Piggyback Loan | HELOC Later |
|---|---|---|---|---|
| Down Payment | 10% | 20% (no PMI) | 10% | 10-20% |
| PMI | None | Required <20% | None | Varies |
| HELOC Access | Day 1 | No | No | 6-12 months |
| Number of Closings | 1 | 1 | 2 | 2 |
| Interest Rate | Fixed + Variable | Fixed | Fixed + Fixed | Fixed + Variable |
| Flexibility | High | Low | Medium | High |
All In One Loan FAQs for Short Hills
How does the All In One Loan avoid PMI?
By structuring your financing as 80% first mortgage + 10% HELOC + 10% down payment, the first mortgage stays at exactly 80% loan-to-value. Since PMI is only required when LTV exceeds 80%, you avoid it entirely. The HELOC portion doesn't trigger PMI because it's a separate line of credit.
Can I access the HELOC immediately in Short Hills?
Yes. Unlike traditional HELOCs that require waiting 6-12 months after purchase, the All In One HELOC is available from day one. You can draw from it immediately for renovations, furniture, emergencies, or any other purpose. This is one of the biggest advantages over conventional financing.
What are the interest rates on the HELOC portion?
The HELOC portion typically has a variable interest rate tied to the prime rate. During the draw period (usually 10 years), you pay interest-only on any amount you've drawn. After the draw period, the line converts to a repayment period where you pay principal and interest.
What credit score is needed for an All In One Loan?
Most lenders require a credit score of 720 or higher for the All In One Loan. You'll also need stable income, low debt-to-income ratio (typically under 43%), and sufficient cash reserves for the 10% down payment plus closing costs.
Can I refinance just the first mortgage later?
Yes, you can refinance the first mortgage portion while keeping the HELOC in place, though this may require lender approval. Alternatively, you can refinance both loans together into a new All In One structure or a traditional mortgage if you have 20%+ equity.
How much can I save on PMI with this structure?
For a home in Short Hills priced at $1,500,000, you would save approximately $563/month or $6,750/year compared to a conventional loan with 10% down. Over 5 years, that's $33,750 in savings—plus you get the flexibility of the HELOC.
Is the HELOC interest tax-deductible?
HELOC interest may be tax-deductible if the funds are used to buy, build, or substantially improve your home. Interest on funds used for other purposes (like paying off credit cards or buying a car) is generally not deductible. Consult with a tax professional for your specific situation.
All In One Loan Requirements in Short Hills
- Credit Score: Typically 720 or higher required
- Down Payment: 10% of purchase price in cash
- Debt-to-Income: Typically 43% or lower (including HELOC)
- Property Type: Primary residence, single-family homes
- Cash Reserves: 2-6 months of mortgage payments recommended
Ready to Save on PMI in Short Hills?
Contact Jimmy Joseph MBA to discuss All In One Loan options and calculate your PMI savings.
Jimmy Joseph MBA
NMLS #1577754
Branch NMLS #2477715
Nearby Morris County Towns
Morristown
$850,000
Madison
$900,000
Chatham Borough
$950,000
Chatham Township
$1,100,000
Harding
$1,200,000
Mendham Borough
$950,000
Why Short Hills?
- Ultra-luxury estates and mansions
- The Mall at Short Hills - premier shopping destination
- Millburn Public Schools - #1 ranked in NJ
- Midtown Direct train access to Penn Station
- Celebrity and C-suite executive enclave
- Prestigious addresses and privacy
Avoid PMI and Access Your Equity in Short Hills
Get personalized All In One Loan guidance from Jimmy Joseph MBA. Save on PMI while gaining financial flexibility.