One of my longtime clients and loudest advocates referred her co-worker almost 2 years ago to refinance her home. She started to get her paperwork together and would get side tracked. Life presented all kinds of hurdles and so it took until June of this year to get things going. She thought she had to wait till her husband got a permanent job to qualify, so she kept postponing the refinancing each time he would have a contract end. She also was angry that their circumstances stopped them from getting the “best rate” last year.
As it turns out, her property value is much higher this year, allowing her to take more cash out to eliminate debt. Her HELOC was about to go up due to the interest only period ends causing an increase in payment of $600 per month. That was what was, in her mind, making this refi now super urgent. She couldn’t afford that increase. Since she couldn’t afford a higher payment in January, she felt she would be forced to sell her home if she couldn’t get a loan.
Her current payments on the 2 mortgages were $3600 and consumer debt of $2900 per month. The new loan eliminated most of the debt and put the 2 loans together for 1 payment ALL IN (principal interest taxes and insurance) of $3600 per month, and we found a program where she could qualify on her own, making her husband’s job hopping a non-issue. Oh, and did I mention that we got all this done only 3 months ahead of her layoff date? (Employer moving out of state). PHEW!! I love it when we can provide relief through our lending solutions! Now she gets to stay in her beautiful home of 20 years while she figures out her next career step.