3 yrs
Payoff Time
$50,604
Interest Saved
17+ yrs
Paid Off Faster
$20,697
Additional Savings
Strategy Comparison
| Current Scenario | MEG Strategy | |
|---|---|---|
| Total Interest Paid | $74,164.68 | $23,560.32 |
| Interest as % of Loan | 35.05% | 10.54% |
| Total Payments | 240 | 32 |
| Years to Pay Off | 20.0 years | 2.67 years |
$50,604.36 in interest savings
The Situation
A retired couple with a $148,000 mortgage balance on a home worth $420,000. With 20 years remaining at 3.25% APR and monthly payments of $1,299, they were set to pay $74,165 in total interest (35% of their loan). They also had an RV loan of $56,800 at 5% and a truck loan of $6,800 at 6%. Total debt load: $211,600. Net monthly income of $12,000 with $6,500 in expenses left them with $5,500 monthly cash flow.
Our Approach
Using the MEG strategy with a $336,000 credit limit, we restructured their debt to dramatically accelerate payoff. By leveraging their available equity and optimizing payment flow, we reduced their total interest from 35% of the loan down to just 10.54%—cutting 240 payments down to just 32.
The Outcome
Completely debt-free in 2.67 years instead of 20 years. Saved $50,604 in mortgage interest plus an additional $20,697 in interest on their RV and truck loans. Total interest savings: $71,301.
Financial Details
Loan Details
- Home Value
- $420,000
- Mortgage Balance
- $148,000
- Current APR
- 3.250%
- Line of Credit Rate
- 7.50%
- Months Remaining
- 240 (20.0 years)
- Monthly Payment
- $1,299.00
- Credit Limit Used
- $336,000
Income & Cash Flow
- Net Monthly Income
- $12,000
- Monthly Expenses
- $6,500
- Monthly Cash Flow
- $5,500
- Total Debt
- $211,600
Additional Debts Eliminated
| Type | Balance | Monthly Payment | Interest Rate |
|---|---|---|---|
| RV | $56,800.00 | $496 | 5.00% |
| Truck | $6,800.00 | $969 | 6.00% |
$20,696.75 saved on additional loans
Key Results
$50,604
Interest Saved
17 Years
Paid Off Early
3 Years
Total to Mortgage Freedom
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