Thursday, November 25, 2010

RESTRUCTURING YOUR CREDIT - MAKING LIFE MORE AFFORDABLE

One of the most important life situations is the disposable income. Many households through, day to day living find themselves accumulating debt. Loans, credit cards and the ``don`t pay a cent event`` can accumulate resulting in living paycheque to paycheque making life and affordability very difficult.

Using the equity in your home can make a huge difference in your daily lives. Following is an example of a real situation using the actual numbers, and how I helped my clients get their lives back.

Current Situation

Mortgage: $130,000 @ 4.99% payments $ 789

Credit Cards: $55,000 @21% (average) Payments $1,650

Loan: $40,000@ 6% Payments $ 772

Don’t Pay a Cent $15,000 No Payments – due now

Totals: Payments $ 3,211

$3,211 per month with $15,000 due or converted to 29.9% interest

This is how I restructured everything:

New Mortgage: $245,000 @ 3.59% with payments of $1,235 per month. The new mortgage reflects any costs to arrange the new mortgage (legal,appraisal) and the client ultimately saved $1,976 per month.

This is what I call giving your clients their lives back.

Rick Moran, AMP, OMB#M08001997

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