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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


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