Knowing that their income was limited and they were receiving disability payments, they thought their only option was to seek private funding. They were reluctant to approach their lender for fear of losing their home.
Although the interest rate quoted by the private lender was less than the interest rate on their credit cards, it was still much higher than using a traditional lender. The couple felt they would have to obtain a second mortgage with a rate of 10% plus a lender fee of up to 6% of the loan amount. In addition, the term would have been one year with a renewal fee of 1% for the total amount borrowed at the end of the term.
A friend encouraged the couple to seek the advice of a mortgage broker and GLM Mortgage Group was happy to help. We were able to use the income received from the disability, and refinanced their existing mortgage and consolidated the credit card and line of credit debt at a rate of 2.35%. In doing so, the couple was able to reduce their current monthly payment by $1,500 with an annual savings of $18,000 – or $90,000 over five years.
If you find yourself in financial hardship after a life even, give us a call now at 604-259-1486.