“We are currently locked into a 10 year mortgage with 8 years left at 6.6% (We needed extra cash at the time). We have some credit card bills that we only seem to be able to pay the minimum balance so they don`t go down, ”Jim wrote last month in an email.
So we called Jim to find out what`s what. With a value expected of 250 k and a mortgage of 202k it seemed there was little we could do. The government now only permits refinancing to 80% so on the surface it looked like this family could not be helped. But we dig deep to see to find solutions for homeowners drowning under the weight of debt. After an appraisal, we were both surprised the value of their home was a bit higher at 260k. So even with the penalty of $11,000 (which includes paying the cashback back) we were able to get a new 1st mortgage. Payments will drop from $1200 per month to 895 per month. Interest is going down from 6.6% to 2.89%.But we didn`t stop there.
Now through our company we offer 2nd mortgages up to 95% of value. So we were able to get a 2nd mortgage for $45,000 to pay off all credit card debt with payment of $450 per month. They were paying close to 1000 per month on their credit cards and the interest is much less.
Jim and his wife Lorraine were thrilled. With our coaching they will work to eliminate their debt under manageable payments. They can finally breathe again. They got into the jam when Lorraine was off for a year on mat leave and could never catch up. The bank who lent them the money could not help. But we could.