Jacob, a self-employed borrower, had a low interest rate on his existing mortgage. However, he had piling credit card debt, as well as a large IRS tax bill that needed to be paid before it became an actual lien.
Challenge
Jacob needed a solution to lower his debts, even if it meant refinancing his home.
Solution
After a consultation with Jason Hill of Hill Mortgage, a cash-out refinance was identified as the ideal solution. Here’s how it worked:
- Utilizing Existing Equity: The equity in Jacob’s current home was converted into ready money in exchange for a new home loan.
- Paying off Debts: This ready money was then used to pay off Jacob’s credit card debts, as well as his tax bill.
- Monthly Payment: The cash-out refinance got him a new monthly home mortgage payment, got rid of his stacking bills, and still left him with net monthly savings.
Outcome
With his cash-out refinance, Jacob was able to pay off all of his credit card debt, pay his tax bill, achieve over $1,500 in monthly savings, and avoid a lien.
If you, or someone you know, needs a unique solution for your needs, please call to discuss further.