Everything You Need to Know About Getting a G.O.A.L.
GOAL is a first-lien HELOC (Home Equity Line of Credit) that functions as both a mortgage and a checking account in one product. It is structured as an open-ended line of credit, which means borrowers are not locked into a fixed amortization schedule. Instead, they reduce interest and accelerate payoff by actively managing their cash flow through the account.
A traditional mortgage front-loads interest - a higher portion of every early payment goes to interest rather than principal. GOAL removes that constraint. Borrowers control how quickly they pay down the balance based on how much money they deposit and how they manage day-to-day expenses. The more surplus income that flows through the account, the faster the principal drops and the less interest accrues.
Borrowers can draw funds from the line of credit for a total of 30 years as long as their principal loan balance is below their credit limit.
Deposits made into the integrated checking account lower loan principal automatically through a feature known as a sweep. That money remains securely available 24/7 for bills and expenses, the same way all other common checking accounts do. But prior to being spent, deposits are used to maintain a lower daily principal mortgage balance which also lowers the monthly interest payments. Interest is computed nightly and totaled once the month ends. Total daily interest from each month becomes the interest payment, which is drafted from the GOAL line of credit automatically on the 21st of each new month. Borrowers can draw from GOAL for 30-years. The original credit limit (loan amount) will reduce evenly each month by 1/240th starting on the 121st month. This structure is unique and helps borrowers maintain a superior level of liquidity and access to their home’s stored wealth while also enforcing a comfortable path to pay-down and payoff.
Each night at midnight, the principal loan balance is multiplied by the fully indexed interest rate and then divided by the days in the year (365). That provides a daily interest fee. Monthly interest payments are calculated by totaling each day's interest once the month has ended.
Yes, deposits are FDIC or NCUA insured while in the checking account portion of the loan. At midnight those funds are transferred to the line of credit to reduce the principal balance and therefore lower interest cost.
First, congratulations! That's exactly what GOAL was designed to help you do. If that is accomplished before the 30th year, you will retain access to home equity dollars without refinancing for the balance of the 30 year-term, through the line of credit. There is no early pay-off fee or pre-payment penalty.
At closing, the borrower receives a debit card, checkbook, and online account access. Borrowers can manage transactions, pay bills, and move funds directly from the account - just like a standard checking account. The key difference is that any money sitting in the account is simultaneously reducing their mortgage balance.
Yes. Borrowers may set up automatic payments for monthly obligations such as utilities, insurance, and subscriptions. When those payments are processed, funds draw from the line of credit - which is why maintaining sufficient available credit is important for ongoing account management.
GOAL accommodates a wide range of income types, making it accessible to a broad borrower base: • W-2 wage earners • Self-employed borrowers • Asset depletion • Commission income • Alimony and child support • Restricted stock units (RSUs) • ADU (Accessory Dwelling Unit) income • Departing residence income
The GOAL program isn’t your typical adjustable-rate mortgage that amortizes your payments and principal reduction. For cash-flow positive borrowers it is designed to generate savings even if the rate rises. That's because the key to lowering the cost of borrowed money is lowering the amount owed (in which interest is computed) as well as reducing the time in debt. The faster loan principal is repaid the greater the savings. As an example, a 2.5% mortgage designed to pay-off in 30-years is more expensive than a 10% mortgage that paysoff in 5.
Mortgage rates change every day, and your rate will vary based on your location, finances, and other factors. Get your FREE customized rate comparison below:
