Dear HCC family,
You have heard us mention a refinance of the mortgage on the church building. You have also heard us mention an opportunity you have to help us lower the principle amount. We have set a goal, a God-sized goal, of $40,000 dollars we are asking you to meet in a short amount of time.
God wants us to be good stewards of the finances He provides to us, and we believe this is good stewardship. We want to give you a full picture, so below you will see the current mortgage situation, the refinance terms, and what the elders are working on in order to achieve a debt free place of worship. With current interest rates at an attractive level, it makes sense to refinance. Doing so also gives us the option of making as much of a lump sum payment as possible to help bring the amount of the loan down.
Please prayerfully examine the following, and consider contributing to help us raise $40,000 so that we can become debt free as soon as possible.
Our monthly payment is $4,063.68 and our interest rate has been 6.5%.
The bank currently holds $36,000 of our General Fund to secure the loan.
In 9 years (2030) there will be a balloon payment of approx. $171,000 that will have to be refinanced for an additional 10-15 years.
Our new interest rate will be lowered to 3.85%, and the loan will be completely paid off in 15 years!
The $36,000 which was held will be freed up for our use.
Our monthly payment on a balance of approx. $350,650 at 3.85% = $2,567 a month.
We feel led to cut our current payment in half. We want our payment to be as close as possible to 2000 a month. To facilitate this we are going to apply the 36,000 (which had secured the loan) against the principle. This leaves a balance of approx. 314,650 and reduces our payment to $2,302 a month.
To make our goal of a $2000, though, we will need a starting loan balance of $275,000. This requires $40,000 extra in addition to the $36,000 hold-back to reduce the payment to $2,013/mo.
We plan on closing as soon as possible to take advantage of the current rates and would need to have the lump sum ready by the end of September.
We have a great opportunity here! Please pray about this proposal, consider what you can sacrificially give, and reflect on how much HE has blessed us!
The Elders of Haverhill Christian Church