Home Equity Loan During COVID-19
Cheryl has been a very successful travel agent for the past 12 years. Her success has been based upon the care and exceptional service she provides to her clients, so she never in her career as a travel agent expected to be in a position where she would not get enough income to handle her own finances.
When the COVID-19 pandemic began, she spent 12 to 14 hours a day helping her clients return home from countries that were now in shut-down, as well as her clients who were now cancelling trips, since travel had been halted.
Although she was providing the same level of service her clients had come to expect, doing these types of transactions did not provide her with any income. Not only was she feeling a high level of anxiety for her clients, but she was also now feeling the stress in her own situation, wondering how long she would be able to continue before missing a mortgage payment.
A particular concern to her was that she recently paid out a large sum for her daughter’s wedding, and also had charged several items to her credit cards, expecting to pay this off with money she would have received from the busy summer travel contracts for her clients. This was no longer going to happen. Her savings were down, and the high credit card interest was starting to add up. She reached out to see what options would be available.
The first thing we did was take a look at the options available on her first mortgage. We were able to speak to her first mortgage lender and she qualified for a “skip a payment” option which gave her relief on the first mortgage.
The next step was to set her up for the upcoming months in order to have money in her account to pay for upcoming bills. We were able to achieve this through one of our loan providers, who offer homeowners loans for up to $40,000, in addition to their mortgage loans. This loan was fully open for any payment amount after three months.
The resulting rate she received was lower than the rates she was currently paying on her credit cards. She paid off her credit cards and put additional money into her account. She now has up to two years to pay this loan off, without the fear of huge penalties if she paid it off early.
For Cheryl, this loan allows her peace of mind to know that she is back in control of her finances. She has a set payment schedule for two years, with the option of paying it off at any time, without penalty, after just three months. We are thrilled to be able to offer her (our now friend) peace of mind, and the ability to continue providing her clients with the care they deserve, without worrying about her own situation.
Are you in a similar situation as Cheryl was? Get in touch to see if we can find a solution that fits your situation. Our experienced brokers are here to help you navigate the financial impacts COVID has had on you and your family.
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