Saved Dentist Over $2,500/Mo, Paying Down Higher Interest Debt!

A dentist in the Chicago suburbs had a lot of higher interest / short amortization debt that was killing her bottom line. Most of it was equipment leases that are usually at a rate of 15-20% APR or more for 5 years. It makes the payment quite high because of these two factors. She also had a cash-flow loan against her practice that was around 25% APR. I think that is just the worst type of loan you can have and I try to avoid it at all costs.

What she really had going for her is the fact that she owned her office condo free and clear. The bad news is that her tax returns were not sufficient for a bank to make a loan against. There just was not enough income. She felt stuck like she could not do anything except continue to bleed from those high-interest loans.

We had a solution for this based on the fact that we have a stated income loan that allows us to look at the bank statements for income verification. NO TAX RETURNS! HOORAY! Now it is even better because if the loan is a cash-out or refinance we only need an application and credit report if the loan is between 100-300K! So now it is a true “STATED INCOME” scenario! She went from paying over $3,600 per month to a little over $1,100 per month!