The mortgage designed for people with high net worth
Pay interest for fifteen years. Then a life insurance policy you fund at closing is designed to make the payments, and to keep paying you after the loan is gone.
On a $4,000,000 home
Offered by qualification, to households with $5M or more. About half the home’s price is committed at closing. Later figures are projected.
A jumbo mortgage paired with a funded life insurance policy, for households with $5M or more.
Make it yours
IllustrationThe mortgage figures are arithmetic: 20% down, an 80% mortgage at an assumed 6.1% note rate in both cases, a 30-year amortizing loan against a loan that is interest only for 15 years and then amortizes over the next 15.
Projected policy cash is not calculated by this site. It scales a quoted illustration of $370,000 a year on a $1,200,000 policy contribution in proportion to the contribution for your home. It is not guaranteed, and an actual proposal uses a carrier illustration for a specific insured person. Property taxes, insurance, maintenance, closing and advisory costs and tax effects are not included.
The advantage of capital
The thirty-year mortgage was designed for buyers who must borrow as much as they can and repay it from a salary. You have something they do not: capital. The Family Office Mortgage is built to use it.
Commit more on the first day, and a funded policy is designed to take over the payments halfway through, then keep paying you. It is the structure a family office puts around a significant purchase, built from ordinary, regulated parts: a home mortgage, a life insurance policy from a major carrier, and a bank loan that finances part of the premiums.
From your lender or one we introduce. Interest only for fifteen years, then repaid over the fifteen that follow.
An indexed universal life insurance policy, funded with about 30% of the home’s price from you and with premiums financed by a bank.
The policy has fifteen years to build. From year sixteen it is designed to fund the mortgage, and then to keep paying you.
01The timeline
$2M
committed at purchase
01At purchase
$800,000 goes to the home as a down payment. $1,200,000 goes to a life insurance policy, and a bank finances further premiums. A lender provides a $3,200,000 mortgage.
About half the price, committed on the first day.
02Years 1 to 15
$16,266.67 a month, against $19,391.83 for a traditional loan. Meanwhile the policy has fifteen years to build value.
That is $3,125.17 a month less than a traditional payment, for fifteen years.
03Year 16
The bank that financed the premiums has been repaid, and the policy is projected to provide $370,000 a year. The mortgage now costs $326,119 a year. The projected source of that payment is the policy, not your income.
The plan is built with margin: $370,000 projected against $326,119 due, with $43,881 a year to spare.
04Year 30
Across thirty years you will have paid $4,928,000 yourself, against $7,781,060 with a traditional mortgage. Either way, you own the home outright.
That is $2,853,060 less from your own pocket.
05Years 31 to 62
With no mortgage left to pay, projected policy cash of $370,000 a year is yours to use, and a remaining death benefit is designed to pass to your family.
The illustrated period. The policy is reviewed against its plan every year.
By qualification
The program is offered to households that meet its published criteria. Three ranges tell you where you stand, before you give a name.
02What it changes
Interest only for fifteen years. In the reference case, $16,266.67 a month instead of $19,391.83.
From year sixteen, projected policy cash is designed to make the payments. Your income stops being the plan.
After the loan is repaid, projected policy cash continues: $370,000 a year through year 62. In the reference case you put in $4,928,000 and the policy is projected to pay you $12,498,211.
A remaining death benefit is designed to pass to your beneficiaries, alongside a home that is paid for.
If you would otherwise pay cash, half the purchase price never leaves your accounts.
03Beside a traditional mortgage
Reference case: a $4,000,000 purchase.
The bottom line, projected through year 62
You put in $4,928,000. The policy is projected to pay $4,891,789 of your mortgage, then pay you $12,498,211. Everything you put in comes back, and $7,570,211 more.
A traditional mortgage on the same home takes $7,781,060 from you over 30 years.
At purchase
Years 1 to 15
Years 16 to 30
Year 31 onward
The whole picture, through year 62
Illustration. Both cases assume a 6.1% mortgage note rate, a 20% down payment, and no investment of money kept or saved. The program’s projected policy cash is a quoted figure scaled to the policy contribution; it is not derived by this model and is not guaranteed. The base case assumes no further personal premiums, financing interest or bank-exit payments. Property taxes, home insurance, maintenance, closing and advisory costs and tax effects are excluded.
04How you are protected
A mortgage paired with a financed policy has moving parts. Our team has structured hundreds of transactions, and each one is underwritten and managed so that you are protected.
We underwrite each transaction as a whole (the purchase, the policy design and the financing) before anything is proposed to you.
Each case is run through simulations across many market paths, on a conservative risk profile.
In the reference case, projected policy cash of $370,000 a year stands against $326,119 of mortgage payments.
Policy values, the bank loan and the collateral are checked against the plan each year, so adjustments are made early.
Your CPA and your attorney see the full proposal before you sign anything.
05Stories
Each one worked through to the dollar.
IllustrationA primary residence
They could afford the payment. What they did not want was a payment that still depended on his operating schedule at sixty-two.
$2,000,000committed at purchase
IllustrationA cash buyer
He was ready to send $7,000,000 to escrow. He sent $3,500,000 instead and kept the rest working.
$3,500,000sent to escrow
IllustrationA home for family
Her parents wanted them close. They funded the policy; she and her husband carry the mortgage.
$1,350,000the parents fund
IllustrationBuilt with margin
The plan is underwritten with room to spare. Here is one household’s plan with the policy paying 10% less than illustrated. The mortgage is still paid in full.
$416,250policy cash, 10% lower
06By qualification
Total household assets, not counting the home being purchased. The program commits about half the purchase price up front, which a household of this size does comfortably.
You carry the interest-only payment yourself for the first fifteen years. The program is built around income of $500,000 to $750,000 and above.
Roughly 20% as the down payment and 30% as the policy contribution. On a $4M home that is $2M at closing.
The policy has about fifteen years to build before it is designed to fund the mortgage. It suits a home you intend to keep.
07Your CPA and attorney
The people who advise you should see everything we see. We have written a technical brief for them: how the three loans fit together, how each case is underwritten, and the documents they will receive.
08The team
Real estate advisory
Berkshire Hathaway HomeServices California Properties
A Harvard-trained economist who spent decades in institutional finance before returning to the coast he grew up on.
949-293-8686California DRE #02283898
Policy design and financing
Finestone Virtual Family Office
Founder of Finestone Insurance and Finestone Virtual Family Office, with a national network of tax, legal and insurance specialists.
By qualification
Three ranges tell you where you stand against the published criteria. If you meet them, Kent Chesley will speak with you personally.
Prefer to talk? Call him directly at 949-293-8686.
