“Many Ways to Accomplish Debt Consolidation”
It has been a few years since we have spoken. At the time you handled our home purchase, we need your assistance again. You may recall, we purchased our residence for $440,000 and put $140,000 at the time. We are estimating that the property is now worth nearly $600,000, our current mortgage is down to about $260,000. Our problem is we have about $80,000 in short term debts and are not sure the best direction to go from here. Should we refinance and incorporate our short term debt or take out a second mortgage? Let us know your thoughts.
Jim and Peggy
Even though these clients were high earners, that amount of short-term debt can be a challenge.
Right now, between their current mortgage and their short-term debt they are paying $5250 a month. Truthfully the monthly payment was not an issue for them, but their short-term debt was growing as they were not paying down much principal.
This solution was pretty simple, I am doing a new mortgage for them in the amount of $350,000 amortized over 15 years. Their new monthly payment with taxes and insurance is going to be $3745 and instead of having 22 years remaining on their mortgage they are reducing the term by 7 years and saving about $1500 per month. The added interest deduction certainly helps as none of the credit card interest was deductible.
“Who else do you know that needs my help?”
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Joe Petrowsky, NMLS #6869
Right Trac Financial Group, Inc. NMLS #2709
110 Main St.
Manchester, Ct. 06042
Office: 860 647-7701 x116
Fax: 860 647-8940
Cell: 860 836-9294
Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.
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