Pacific Trust Bank’s Green Account is revolutionary because it is the first fully-transactional mortgage to be offered in America. What does “fully-transactional” mean?
We all have an idea of what a “transaction” is. You perform a transaction every time you pay a bill, make a purchase, move money from one account to another, get cash from an ATM, and when you deposit or withdraw funds.
Previously, only checking accounts allowed unlimited transactions of all the various possible types. Now a mortgage loan product, the Pacific Trust Green Account, lets you perform any type of transaction that could be done with a checking account.
With your Green Account, you can pay bills, make purchases and withdraw funds in all manner of ways: at Pacific Trust Bank offices, by check, at ATMs, with a PIN or signature based debit card, by HomeAccess Online Banking transfer or bill payment request, and even through ACH (Automated Clearing House) transactions.
Similarly, you can make deposits to your Green Account at our offices, by Direct Deposit of your payroll or other funds, at over 5,000 select deposit-taking ATMs, at teller windows in hundreds of shared-branch office locations throughout the US, and by HomeAccess Online Banking account transfer, mailed deposits, etc.
Pacific Trust Bank can offer these transactional services by linking your Green Account to its associated Clearing Account (an FDIC-insured demand deposit account).
Because of various federal banking regulations and transaction processing rules, all Green Account deposit and withdrawal transactions first “clear” through its linked Clearing Account. Then all of the transactions are “swept” at the end of each day to your loan account. The Clearing Account balance at the end of each day will be $0, unless your deposits exceed your outstanding loan balance.
In this way, every Green Account deposit goes directly to reduce your loan balance until funds are needed. All deposits to your Green Account are treated as principal only loan payments.
By depositing your paycheck, savings and other funds into your Green Account, instead of a low-interest rate checking or savings account, you immediately reduce your loan principal balance by the amount of your deposit. And, the lower your loan balance – the lower your interest expense, so you start saving immediately.
You can pay all of your expenses out of your Green Account, instead of a standard checking account. But, until you need the money, it stays in the mortgage – keeping your balance lower. Meanwhile, you’re effectively “saving” the difference between your mortgage rate and what it would otherwise earn in a checking account (if anything).
Each deposit frees up additional available credit (up to your Green Account's full Credit Limit), that can be accessed whenever you wish during the loan’s 15-year term. Each withdrawal by check, ATM, debit card or by whatever means, will increase your loan balance and reduce your remaining available credit.
Full transaction capability is just one of the Green Account’s many benefits. To find out more, please click on one of the following links:
Or, talk over your home financing needs with a Pacific Trust Bank loan officer. We're here to help. Call us toll-free at (877) 441-BANK.
To request via e-mail additional information about Pacific Trust Bank's loan programs, please Click Here.
Pacific Trust Bank is an equal housing lender.
