Janice and Chris never got any financial or emotional help from their parentswhen they were buying their first home. They were on a mission to help their kids, but in the process, they racked up $80,000 in credit cards that would take them years to pay off.
The remaining balance on their own mortgage was $97,000, their rate was 6.25% and they had 19 years left to pay. Their mortgage payment including taxes and insurance was $1,216 per month. The minimum payments on the credit cards was $2,612. Not a pretty picture.
They did have a lot of equity in their home, estimated value was $350,000. So, the solution was to incorporate the balance of the 1st mortgage, plus the credit cards, doing a new mortgage of $182,000 for 15 years, with a new payment of $1,629. They are planning on putting the savings into a retirement account, looks like $25,000 a year going into this account.
Their children are very fortunate to have Janice and Chris as their parents.
