Mira and Larry want to lay their terrace and place a carport. They do not receive financing from their bank, because Mira is incapacitated for work and receives benefits through the health insurance fund. Thanks to an intelligent view of their financial situation, they can still do these small works. They opt for a new mortgage loan.
Benefit through health insurance is an obstacle to financing
Mira is temporarily unable to work and is currently receiving benefits through his health insurance fund. When Mira and Larry look for financing to lay out their terrace and place the carport, they unsuspectingly approach their house banker.
There, the payment from the health insurance fund appears to be a problem for obtaining an additional loan or a drawback of their mortgage credit.
Moreover, there was no room for an additional loan. They were already on a borrowing charge of 71%! So the banker’s right decision. But no solution for the couple.
A borrowing charge of 71%
Mira and Larry have a borrowing burden of 71%. How do they get a borrowing charge of 71%? This is a view of their financial situation:
- Mortgage credit of $ 115,000 – monthly charge of $ 984
- Installment loan (cash requirement) of $ +/- $ 20,000 – monthly charge of $ 321
- Installment loan (car financing) of $ 15,000 – monthly charge of $ 291
- Credit opening (credit card) of $ 5,000 – (theoretical) monthly charge of $ 250
- Credit opening (credit card) of $ 1,240 – (theoretical) monthly charge of $ 62
In total, Mira and Larry pay off debts of $ 1,907 per month, where their combined income is just under $ 2,700.
In order to advise them, they contact an independent credit intermediary in mortgage credit.
Intelligent view of their financial situation
The credit intermediary in mortgage credit listens carefully to their story and analyzes the entire file. He ultimately formulates a proposal that gives a different perspective.
The proposal is to refinance their existing home loan together with the installment loan (money requirement) in a new mortgage loan. Space can then be made available in this new home loan to borrow the budget for the works ($ 17,000).
What are the benefits with their new mortgage credit?
The couple let this proposal sink in and consider the advantages and disadvantages. A calculation convinces them that this is a good proposal.
These are their benefits.
* Decrease in monthly credit burden
The loan burden falls from 71% to 47%. This makes their new situation bearable again.
* Implementing their project, which increases the value of their home
They can lay the terrace and place the carport. This increases the value of their home. From $ 230,000 for the works to $ 250,000 after execution of the works.
* New financial comfort
Their surplus of living is rising. This is the amount that the couple has left each month to pay other costs. It rises from $ 787 to $ 1,420 per month. A doubling of the household budget.
* Also a long-term winner
Suppose the couple did nothing about their current situation, they would repay a total (capital and interest) of $ 232,000 for the mortgage loan and installment loans. With the new mortgage loan of $ 122,000, they will only repay a total of $ 161,000.
Investigate your financial situation? Which can!
You do not have to lay a terrace or place a carport, every moment is good to have your financial situation examined. At Lenders Credit you can rely on a network of 500 independent credit intermediaries in mortgage credit. They are happy to help you further. Complete this form and we will get you in touch with one of them as soon as possible.