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July 5, 2004 |
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Mr Bill Thompson
45 Norway Street
Carson, CA 90302
Dear Mr Bill Thompson,
In today's fast paced world of unexpected expenses
it's too easy for small loan and credit card debt to climb out of control.
Even for normal, legitimate expenses such as family emergencies, college
expenses, auto repair and vacations, credit card debt can eat up paychecks
and hurt valuable savings plans. Debt consolidation by home loan refinance
can help in many ways. First, it will lower monthly payments considerably. Second,
most mortgage loan interest is tax deductible, adding to the total amount
saved.
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Debt Consolidation Estimation
List of Current Creditors
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Name |
Type |
Rate |
Balance |
Payments |
Payoff |
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Existing Mortgage Loan (Loan 1) |
mortgage |
6.750% |
$208,360 |
$1,374 |
342 |
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Bank of America |
Credit Card |
9.900 |
$5,250 |
$350 |
never
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Transamerica |
Personal Loan |
8.125 |
$3,230 |
$175 |
20
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Capital One |
Credit Card |
15.250 |
$2,200 |
$100 |
never
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Citibank VISA |
Credit Card |
13.000 |
$3,600 |
$200 |
never
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WMB VISA |
Credit Card |
7.125 |
$3,990 |
$225 |
never
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Total
(total may include creditors not shown) |
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242,682 |
2,737 |
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Proposed Financing Breakdown
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Options |
Terms |
Rate |
Loan Amt |
Payment |
Tax Savings /m† |
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Loan 2 |
30 year fixed rate
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5.250% |
$230,000 |
1,583 |
$372 |
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Loan 3 |
30 year adjustable rate
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3.750% |
$230,000 |
1,378 |
$266 |
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†Estimates
based on 8 year projections |
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BOTTOM LINE
With loan option 2: refinance and debt consolidation will reduce monthly payments by
$1,526
With loan option 3: refinance and debt consolidation will reduce monthly payments by
$1,625
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The following pages will provide a detailed description
of each loan considered as well as additional performance estimates. If you have any
questions please call me at 310-555-1234. Thank you for considering
ACME Mortgage.
Sincerely,
Joe Officer |
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