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For you lenders out there, what's the difference between an all-in-one loan vs conventional loan w/ HELOC?

Stumbled across all-in-one loans recently and didn't see anything worthwhile in the search function. So...for you lenders out there, what would make the AIO loan more beneficial than a conventional loan w/ HELOC? From my understanding, the whole point of an AIO loan is that you combine your loan into a bank account and use your excess funds to decrease the overall principle. With this, though, you are doing daily interest rate variations and from what I've seen, your interest rate can vary a lot (the place I was looking at recently said it could go up to 13%). So why do that instead of getting a fixed rate conventional, throw all your "extra" cash into paying off the principle, open a fixed rate HELOC and have access to that money from there? The difference I'm seeing is that the conventional/heloc is fixed while the AIO is variable and, I suspect, like most variable loans, varies on the high side.

Thanks!

submitted by /u/WinnieThePig
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source https://www.reddit.com/r/RealEstate/comments/w63o9h/for_you_lenders_out_there_whats_the_difference/
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