- stephanieshiu
Pay Day Loan Joe
Real People, Real Solutions
Problem:
Joe had a 1st, 2nd & 3rd mortgage registered on his property. He took out high interest Fairstone & Easy Financial loans, not knowing that these would be registered as mortgages. He could not afford the high interest payments on the three mortgages and accumulated an additional $44k in credit card and payday loans to try to cover mounting payments. Credit score was bruised due to high debt loads. Joe also started a new job only 8 months ago and the bank did not like his short employment history.
Solution:
I assisted Joe with a mortgage approval via a B lender. We secured a new 1st mortgage at 3.59% and consolidated all three mortgages and debts. As a result, we were able to increase his monthly cash flow by over $2040/month. In addition, Joe received an extra $65K in pocket for renos and emergency funds.
House Value: $305,000 | |
BEFORE | AFTER |
1st mortgage: $75,000 @ 3.84% | New 1st mortgage: $190,000 |
2nd mortgage: $13,000 @ 18% | Interest rate: 3.59% |
3rd mortgage: $28,000 @ 29% | Payment: $856/month |
Credit cards: $3,300 @ 22%+ | All mortgages and debts consolidated |
Pay day loans: $40,000 @ 10%+ | $65,00 in pocket after the mortgage funded |
Total monthly payments: $2,900/m | Total cash flow savings: $2040/month |
