4 yrs
Payoff Time
$19,371
Interest Saved
12+ yrs
Paid Off Faster
$2,102
Additional Savings
Strategy Comparison
| Current Scenario | MEG Strategy | |
|---|---|---|
| Total Interest Paid | $28,484.92 | $9,114.20 |
| Interest as % of Loan | 25.30% | 4.57% |
| Total Payments | 192 | 47 |
| Years to Pay Off | 16.0 years | 3.92 years |
$19,370.72 in interest savings
The Situation
A traditional W2 employee with a $101,700 mortgage on a $190,000 home. With 16 years remaining at 2.99% APR and $1,014 monthly payments, they faced $28,485 in total interest (25.3% of loan). They also carried three additional debts: an auto loan at $3,500 (7.5%), and two personal loans at $3,300 (11%) and $4,100 (15%). Total debt: $112,600. With net monthly income of $5,175 and expenses of $3,565, they had $1,610 monthly cash flow.
Our Approach
With a $50,300 credit limit based on their home equity, we consolidated and optimized their debt structure. The strategy eliminated the high-interest personal loans first while restructuring the mortgage payoff. Reduced total interest from 25.3% to just 4.57% of the loan—cutting 192 payments down to 47.
The Outcome
All debt eliminated in 3.92 years instead of 16 years. Saved $19,371 in mortgage interest plus $2,102 on the auto and personal loans. Total savings: $21,473.
Financial Details
Loan Details
- Home Value
- $190,000
- Mortgage Balance
- $101,700
- Current APR
- 2.990%
- Line of Credit Rate
- 6.00%
- Months Remaining
- 192 (16.0 years)
- Monthly Payment
- $1,014.00
- Credit Limit Used
- $50,300
Income & Cash Flow
- Net Monthly Income
- $5,175
- Monthly Expenses
- $3,565
- Monthly Cash Flow
- $1,610
- Total Debt
- $112,600
Additional Debts Eliminated
| Type | Balance | Monthly Payment | Interest Rate |
|---|---|---|---|
| Auto | $3,500.00 | $360 | 7.50% |
| Personal Loan | $3,300.00 | $91 | 11.00% |
| Personal Loan 2 | $4,100.00 | $122 | 15.00% |
$2,101.73 saved on additional loans
Key Results
$19,371
Interest Saved
12 Years
Paid Off Early
4 Years
Total to Mortgage Freedom
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