Mortgage Refinance Case Study
John and Dianne purchased a property 4 years ago. They had made all repayments to date on the mortgage loan and had been fortunate to see the property appreciate in value over the years.
John and Dianne were also paying off a motor vehicle loan, a personal loan for an in-ground pool and had a credit card with a limit of $5,000.
John and Dianne were meeting all their monthly repayments but were finding it increasingly difficult to manage their money and their repayments.
The Problem
John and Dianne's monthly repayments were $2,610 and they were finding it increasingly more difficult to manage the repayments on all their loan accounts. A snapshot of their loan accounts revealed the following:
| Loan Account | Interest Rate (%) | Balance | Monthly Payment |
|---|---|---|---|
| Mortgage Loan (25 yrs) | 8.32 | 150,000 | 1200 |
| Motor Vehicle Loan | 10.70 | 16,500 | 388 |
| Personal Loan (3 yrs) | 13.20 | 20,000 | 688 |
| Credit Card | 17.0 | 5,000 | 150 |
| Total | $191,500 | $2,426 |
The Solution
John contacted Evolution Lending and applied for a mortgage loan for $191,500 to consolidate all their debts into one monthly payment.
The Evolution Lending relationship manager was able to refinance the loan over a 30 year term and consolidated all their debts into one convenient monthly mortgage repayment of $1,450, this compares to what they were previously paying namely $2,426 per month.
John and Dianne would have an additional $1,000 per month available to them with no increase in their existing liabilities.
Significant savings can be achieved by consolidating all your finances into one easy loan. Home loan rates are generally lower than those of personal loans, credit cards or car loans. By combining all of these into one home loan you are reducing the amount of interest you pay and help you live a little easier.
With the assistance of Evolution Lending, their mortgage loan to consolidate their debts was approved.
(The above is an example only and is not a true account).