Financing Your Gammill
With interest rates at historic lows, many of our Gammill family members are taking advantage of these rates to assist them in buying a Gammill. A home equity line of credit (HELOC) could be one such financing option available to you.
A HELOC is a line of credit secured by your home that gives you a revolving credit line to use for large expenses or to consolidate higher-interest rate debts.
We recently heard from a customer who was able to refinance her loan and take out a HELOC to purchase a new Statler. Because of low interest rates, her monthly payments did not increase and her loan payoff did not change but she was able to use the money saved on interest to purchase her new Statler.
Here is how this process works using sample numbers and a fictitious customer, Jane.
Jane purchased her home in July 2008 for $300,000. On a 30-year mortgage at 6%, Jane’s monthly payments are $1,799. With this loan, Jane’s home would be paid off in 2038.
In July 2020, Jane’s loan payoff amount is $236,626. Jane decides to refinance and take out a $50,000 HELOC, part of which will pay for her new Gammill.
Jane’s refinanced interest rate is 3.5%. Her new loan payoff is $286,626 but because of the lower interest rates, her payment will remain at $1,790 and her loan will still be paid off in 2038.
This is a simplified example but when making a large purchase, it is important to consider all your payment and financing options. Please contact your finance and tax representatives to discuss which options are right for you.
For more information about other financing options available to purchase a Gammill, visit Gammill.com/Finance.