What to do when you are having a tough time

Mortgage and Lending with Lynn Meldrum with Verico Canada First Mortgage

I realize that someone with a mortgage these days can sometimes be in a negative equity situation, however if your not you could take your payments down by hundreds if not thousands by refinancing and putting all your bills onto your mortgage.  This shouldn't be a yearly occurance if you eventaully want to own your home.  However when in a short term financial situation it is probably the best thing that will take down monthly payments, espicially with the lower interest rates. Below is an idea of a person who would be best to get a refinance to get all montly payment down.






$250,000.00 @ 5.75%

$1562.50/ mon

Car Loan

$35,000.00 @ 5%

$660.49/ mon

Credit Cards

$30,000.00 @ 18%

$900.00/ mon

Line of Credit

$15,000.00 @5%

$450/ mon

Total Monthly






New Mortgage

330,000.00 @ 4.19%

1491.77/ mon

*Rates as of March 5, 2009;  **rates can change without notice

Monthly Savings


Yearly Savings


This is not the fix you want to do every year.  If you can't get your debts down anyother way this is definitly an option.  My biggest suggestion would be to try and live on your income and not go into debt for daily living.  If you are doing this then you need to re evaluate your situation.  If you think you might be in the process of changing your lifestyle for the worst and you have equity in your home, think about taking some of the equity out for a buffer and if you don't need it within a couple of years then you can put it right back on your mortgage.

If you need more information let me know.


Lynn Meldrum

Verico Canada First Mortgage


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  1. Kevin Robinson 03/06/2009 02:12 AM
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Paul McFadden
Paratex - Seattle, WA
Pest Control, Seattle, WA.

Lynn: Nice post. Thank you! At first I thought your post was going to be about what to do when you're down and I was set to comment. I'm glad I read it. Those are good thoughts. Not everyone has the wherewithal to do what you recommend here but it's worth taking a look at. Have a great day!

Mar 06, 2009 02:22 AM #1
Robert May
Robert W May - Lethbridge Real Estate - Lethbridge, AB
Real estate consulting

That is a great example of how someone can access their equity in order to reorganize their debt and increase their positive cashflow each month.  I have one client who is doing just that this week!


Robert May  Lethbridge Mortgage Broker Lethbridge Real Estate

Mar 07, 2009 05:20 AM #2
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