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Debt Consolidation & Mortgage Refinance

Consolidating debts through a mortgage involves using the home's equity to secure a loan with lower interest rates compared to unsecured debts. This approach simplifies finances by combining various high-interest debts into a single, more manageable mortgage payment, potentially reducing overall interest costs.

Want to See Some Examples
Of Debt Consolidation Mortgages?

Couple paying bills

*Names have been changed for privacy*


Case # 1 - Property Tax Arrears

Facing financial challenges due to property tax arrears, John and Marcy, despite maintaining their mortgage payments, found themselves burdened by escalating penalties and fees. With $25,000 in property tax debt accumulating at a monthly penalty of $625 (2.5%) and an annual balloon penalty of $1875 (7.5%), the situation was becoming increasingly difficult. Although their bank offered a mortgage renewal at a high rate of 10%, they were unwilling to assist with consolidating the property tax arrears. In need of extra cash for a home renovation, they approached me for help. Despite their not so bad credit and a beautiful property, the looming threat of foreclosure prompted action. The solution involved securing a new mortgage of $275,000 at a lower rate of 8.19%, which covered the existing mortgage, property tax debt, legal fees, and setup fees. The successful outcome included a surplus of approximately $15,000 deposited into their bank account, allowing them to complete their renovations.

In a few years, with improved credit, we can't wait to help them move to a Prime "A" lender for an even lower rate!

Case # 2 - Credit Union Won't Consolidate Debts

Tammy, a single mom, faced financial challenges after falling behind on bills due to illness, despite her good credit score. Despite her long-standing relationship with the Credit Union, they refused to refinance her mortgage to address her mounting credit card and personal loan debts. With credit cards exceeding $25,000, a $24,000 personal loan, and a $150,000 mortgage, Tammy was juggling monthly payments of $500, $495, and $900, totaling $1895. To alleviate her financial strain, we successfully secured a new mortgage for Tammy at $205,000 with a 5.19% interest rate, resulting in a reduced monthly payment of $1118. This consolidated amount covered her credit cards, personal loan, mortgage, and legal fees, translating to significant monthly savings of $777. With this financial relief, Tammy is now managing her bills effectively, and we anticipate supporting her during her mortgage renewal in 5 years.

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