This week’s success story is from a lady who was referred to me by her financial advisor. He thought she could do well to check into whether a refi would be worthwhile.
She bought her home in 2003 and got a 5.375% 30-year fixed. But then had to take out a line of credit in 2010 when her business suffered a hit in the economic downturn of 2008. She then turned into a fixed rate at 7.875%.
She also accumulated credit card debt when, as a business owner, she had to use credit cards to keep her company afloat during that time. She worked hard at the business for 3 more years, but still got deeper in debt. Because of the struggle, shame, emotional exhaustion, and of course, the lower value on her home, she just didn’t want to ask about a refi until now.
But there’s always hope, and when you have decades of experience there’s usually a way…so by crunching the numbers, we were able to combine the two loans into one, and switch over to a 15-year fixed, cutting years off the 2nd mortgage for the same payment. We were also able to eliminate the $2000 per month she was paying on credit cards. (So a net savings of $1700.)
Now, she can finally gain speed on paying off her home before retirement AND save the $1700 per month for her retirement nest egg.
She had not checked refinancing before because of the economic downturn had hurt her credit and credit score, AND she didn’t have much equity. NOW she has better credit scores (700) AND equity to tap into, and can hit the restart button on her finances.
If you know anyone who just wants to check to see if they could improve their financial situation, please introduce us. You, and they, will be glad you did.
This could be a life changer, so go ahead be a little pushy with those you know who could use some gentle guiding help.
Success Story: Speaking of Surviving
