Posts Tagged "mortgage payment"

Refinancing your home Part 2: An Example

Posted by Preet on Jul 27, 2007 | 2 comments

Okay let’s show how an actual couple ended up freeing $915.80/month by refinancing their home. I’ve rounded the numbers, but they are from a real life scenario. We’ll begin with a snapshot of what their financial situation was BEFORE: Home Value: $250,000 Mortgage: $150,000 balance, 20 years left, 6% interest rate = $1,070 Monthly Payment Credit Card Debt: $10,000 balance, 18.8% interest rate = $500 Monthly Payment Vehicle Loan: $26,000 balance, 8% interest rate = $500 Monthly Payment Department Store Charge Cards: $5,000 balance, 28.8% interest rate = $250 Monthly Payment In this case, they have a total debt obligation of $191,000 and total...

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Refinancing your home

Posted by Preet on Jul 27, 2007 | 0 comments

I’m going to offer up an example in a following post, but this post is to deal with the psychological aspect of refinancing your home to consolidate debt. First, let’s just make sure we’re on the same page and define “refinancing your home”. This is basically when you have some equity built up in your house (after paying your mortgage payment for a few years or having put a large down payment on it) and you use that equity to pay off OTHER debts so that instead of having a mortgage payment, a credit card payment, a line of credit payment, a vehicle payment, etc you will only have one slightly larger mortgage payment and that’s it. I...

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