Wednesday, June 17, 2009

My mortgage advice

My friend and his husband has there own business, when his husband ran while my friend had another job. Because of the global economic crisis happen the business was forced to close and his husband stayed at home with their school age children for a year to save daycare expenses. They barely scraped by, but were beginning to lose ground. They had $100 monthly credit card payment, $ 200 car payment and $150 home equity loan, $500 mortgage payment, plus the normal monthly expenses. Over all their debt payment was $950 a month. By squeezing equity out of their home and rolling the debt into the mortgage, they were able to realize savings of $320 a month. The mortgage payment is now $620 and the small payments are gone. They were fortunate to have the equity available.

With their decent not excellent credit score the possibility of refinancing and saving some money is available to many families. Those with excellent credit scores can see debt rates under 5% which can offer significant saving potential. The money saved can allow families to ride out this depression without a significant drop in standard of living. The money saved can also go to home improvements, getting the house ready to sell when the housing market improves.

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