Americans Find Themselves Further in Debt - Now What?

Americans Find Themselves Further in Debt - Now What?

CNN’s recent reporting shows Americans once again find themselves further in debt – Now What? As stimulus money has run out, our appetite for debt has not. USA credit card balances rose by $17 billion in just the last quarter and total debt has increased by $1.1 trillion over pre-pandemic 2019 numbers. At the same time, inflation continues to rise and pushes both home and auto prices even higher. So what lessons can we learn from America’s growing debt?

The Debt Hole

Let’s take a look at the debt hole that many are in. As an example, suppose you bought a home in Orange County, CA, in January of 2018 for $420,000 with a 20% down payment and a 30-year mortgage at 3.25%. By making your payments for nearly four years, your loan balance would now be hovering around $310,000. Unfortunately. like many Americans, you have accumulated some credit card debt (family sickness, out of work, car repairs, etc.). Let’s suppose you have accumulated $10,175 in credit card debt, leaving you with minimum credit card payments of $204. In this situation, it will still take you 26 years to pay off your home and over 30 years to pay off your credit cards (at an average interest rate of 18% and making only minimum payments). The good news – you can flip the script and not stay on this plan by reorganizing debt.

Reorganizing Debt

It comes as no surprise that most Americans have some level of debt; in California the average household has $10,175 in credit card debt. While we all would love to be debt-free, that is not the situation many are in. Yet, homeowners today may have a fantastic opportunity to put themselves on a path to become debt-free sooner than they could ever imagine. Let’s look at an example of how reorganizing debt could make this happen.

In this same example, the home purchased in 2018 would now have an estimated value of $558,613. By refinancing into a new 30-year mortgage at 2.99% and taking out enough money to pay off your credit card, you could save yourself an estimated $298 a month in payments (credit card and mortgage payments). Imagine what you could do with that savings? However, one of the most effective, debt reduction options would be to use the savings to pay off your home faster instead of paying the credit card companies. Begin by taking all the monthly savings and paying down the principal balance of your home! Making this one change, which doesn’t even change your monthly budget, would pay off your home in 22 years and four months. This pays off your home nearly four years sooner than the original loan you took out when you bought your home and increase your net worth by $63,291. Click here for details.

Debt Reorganization Expertise

As you can see, there are many factors to consider when reorganizing debt. Refinancing is one option and it would be easy to become overwhelmed during the debt reorganization expertise. The GOOD NEWS – you don’t need to tackle this alone. Let Revival Lending, a Certified Mortgage Advisor, help you! Your dreams are not one-size-fits-all; your loan shouldn’t be either.

Revival Lending, Certified Mortgage Advisors

At Revival Lending, we are Certified Mortgage Advisors. We will work to design a customized loan to facilitate your goals.  We want to earn your business over a lifetime and not just through a one-time transaction. We promise to take the time to truly understand your goals and help you map out a plan to use your mortgage and home to reach them.  Call or email us to schedule a complimentary mortgage review today. You will not be disappointed!

Home Improvements That Pay

Play Video

Energy-Efficient Windows

Many home renovations will increase your resale value but home improvements that pay you now are a smart investment. Energy-efficient windows pay for themselves now and when you’re ready to sell!

Older homes typically have windows that are of a single glass pane construction that waste energy and money. They are not energy-efficient at all and are simply barriers to rain and bugs. When you sell, expect buyers to offer less and create negotiation strategies considering they will want to replace them.

You see, today, manufacturers are making double- and triple-pane vinyl windows that insulate the home from wind, rain, cold, heat, and even outside noise. Additional benefits to multi-pane windows include a reduction of dust and allergens, added security for your home, ease of maintenance, and increased curb appeal. Now, let’s talk about the financial impact.

EnergyStar-Rated Windows

Replacing old windows with EnergyStar-rated windows will save money on heating & air conditioning bills. These windows also insulate so efficiently; additionally, green energy tax credits can apply! Next, new windows provide one of the higher rates of returns for a home improvement investment. In fact, a recent report entitled “Remodeling 2020 Cost vs. Value Report”* ( shows homeowners can expect a 73% return on their project investment when they sell their home.

Home Improvements That Pay for Themselves

While the initial cost for new windows can be high, it is one of those home improvements that pay for themselves in lower energy costs, and they will surely increase the value of your home when you sell!

Need a referral? Give us a call!

*© 2019 Hanley Wood, LLC. Complete data from the Remodeling 2019 Cost vs. Value Report can be downloaded free at

Revival Lending is here for you! As a mortgage broker, we have access to hundreds of lenders who offer a variety of programs and certified services for every need:

• Second Mortgages
• Certified Veteran Loan Specialists
• Commercial Loans
Take the next step—->
Call or Email for a free consultation!
• Complete our no-obligation application online
• Tag friends who need a home loan or those who could improve their financial position with refinancing.
• FOLLOW: @revival_lending for market updates and tips on achieving financial freedom through homeownership.
Our Commitment

Our Commitment

Buying a Home

Our commitment to you is to support your decision to buy a home. This commitment you’ve made is an incredible accomplishment; a sacred act. It’s the purchase of your sanctuary, the escape from the world‘s turmoil and noise. A space that fosters cherished memories with family and friends. It’s no small act…

The Home Loan Process

The process of obtaining a home loan can be overwhelming—but it doesn’t need to be. At Revival Lending we‘ll  guide you from beginning to end, demystifying the process throughout. We eliminate surprises and offer full disclosure. We pride ourselves with being in constant communication with our home buyers and realtors, proactively updating and educating you throughout the loan process. We value integrity and will always have your best interests at heart. 

We don’t just get you into any loan, together we’ll:

1. Discuss and assess your unique situation

2. Find opportunities to improve your financial circumstances

3. Identify long term plans, goals and dreams, and

4. Work to design a customized loan option that fits all your needs and sets you up for success!

The way we work is not a standard in the industry, excellence is not common. At Revival Lending we help you experience revival in your finances and your life.

Welcome to Revival Lending! 

Your dreams are not one-size-fits-all, your loan shouldn't be either!
Home Refinance icon - Mortgage Loans For Every Need - Revival Lending
Tyson Hilton
To Infinity and Beyond

To Infinity and Beyond

Buzz Lightyear’s trademark cry of “To infinity and beyond!” from Toy Story is an all time favorite movie quote. Ever wonder why? Think about it, “Why?”, a question we learn to ask at an early age but the older we get, we seem to ask less and less.

Do Not Stop Dreaming

It’s easy for both people and companies to get into a rut and stop asking the fundamental question, “Why?”.  Simon Sinek writes, in his book “Start With Why”, “Very few people can clearly articulate WHY they do WHAT they do. WHY do you get out of bed every morning? WHY should anyone care?  I have found that when we only think in terms of “what” and “how” we stop dreaming- and no one should stop dreaming.

Understanding Your Dream

My wife, Alicia, and I began Revival Lending with a clear understanding of our why- “to help people experience revival in their finances and their lives.” We believe the best way to accomplish our dream is to free people up to dream again about the “why” in their life. As a mortgage professional with 20+ years of experience, I know I can help people navigate the process of home finances to put them on a road to fund their dream. That’s why our loan process always begins with our clients; understanding their dreams, their needs, and their housing situation. Their dreams are not one size fits all, so neither should be their loan solution.

Dreams Realized

As a business owner, I am often asked how I measure success. To me the answer is simple. We talk in terms of dreams launched and funded. More specifically, I talk about my client, who at the age of 62, took the courageous step and started her own company after years of working for someone else. I talk about the young couple who bought their first home once they saw it would cost them less than renting. I talk about the happy homeowners who regained hope after they had lost everything in the last recession. Children sent to college. Kitchen remodels. Retirements secured. Dreams realized. I measure success one dream at a time.

What’s Your Dream

What’s your dream? I would love to hear from you. Give me a call and I will be happy to conduct a complimentary financial review of your situation, and we can talk about how to finance your dream. In fact, I will give away a copy of Simon Sinek’s book, Start with Why, to the first five people who complete a financial review with me.

FREE Copy With Financial Review

Start with Why - Simon Sinek

What’s Your Dream – Let Us Help You Get to Infinity and Beyond!

Schedule Your Financial Review

    The Home Equity Secret Menu

    The Home Equity Secret Menu

    The Home Equity Secret Menu. Haven’t heard of it? Well, just like the famous secret menu of In-N-Out , the mortgage industry has a secret menu of its own. Here is everything you need to know about the Home Equity Secret Menu.

    Your Situation

    So, you want access to the equity within your home? Should you look to refinance your current mortgage or obtain a 2nd mortgage? Does trying to decide make you think of the old Clash song which asked, “Should I stay or should I go now? If I go, there will be trouble. And if I stay it will be double.” Yet, unlike the song, which implies a no-win situation, there are a few easy ways to figure out the best financial option for you.

    Just the Facts

    Here is the reality. To obtain access to your home’s equity, without selling it, you have two main options. 
    First, you can simply refinance your current mortgage and pull cash out. Choosing this option usually provides you with access to the lowest current interest rates on the market. Yet, obtaining a new first mortgage can be more time consuming and expensive than obtaining a second mortgage.  
    Second, you can choose to tap into your home’s equity by obtaining a second mortgage. These loans typically can be completed quickly and often provide access to a greater portion of your home equity than many first mortgages. However, these mortgages usually have a higher interest rate than those available on a first mortgage. 
    So how do you decide? Which option provides you the lowest overall rate?

    The Blended Rate – The Home Equity Secret Menu Item

    Let me introduce to your new friend, the Blended Rate. It provides us with the necessary tool by which we can compare the two options above. The Blended Rate is a mathematical equation which allows us to calculate the effective rate when combining two loans. In other words, using the blended rate formula allows us to determine the effective interest rate when combining your current mortgage with a proposed second mortgage. We can then compare this blended rate with a proposed new 1st mortgage rate to see which one is lower.

    The Blended Rate Applied

    To see how the blended rate is applied, let’s image you have a current 30 year mortgage of $250,000 at an interest rate of 4%. You needed to get $50,000 to complete a kitchen remodel and make a down payment on your daughter’s college tuition. In speaking with a mortgage professional, you were offered a new first mortgage at 4.5% or you could obtain a 2nd mortgage at 7.99%. 
    Now, let’s apply the blended rate formula (math explained in more detail below). This reveals the effective interest rate of keeping your current 1st mortgage and obtaining a second mortgage is 4.69%. In this case, the lowest interest rate available to you would be obtaining the new 1st mortgage. Yet a small change in your requirements can flip the equation. Imagine your cash out requirements dropped to $20,000. Now, the blended rate formula reveals your effective rate would instead be 4.29%. In this case, keeping your current 1st mortgage and obtaining a second mortgage would provide you with a lower interest rate. 

    Complimentary Financial Review

    At Revival Lending, we work hard to understand the particulars of your situation and find the loan that best helps you accomplish your goals. There is a reason we say, “Your Dream. Your Home. Our Loan Solution.” If you have any question about this scenario or your own financial situation give me a call and I will be happy to conduct a complimentary financial review of your situation.
    P.S. – Now make sure to apologize to your high school math teacher and parents for saying you would never need this algebra stuff in the real world.
    P.S.S – If the mere mention of In-N-Out has made you hungry, here is a guide to their secret menu.
    Blended Rate Formula Explained
    Blended Rate = (r1*b1 + r2*b2)/tb
    r= Rate, b= Loan Balance, tb= Total Balance
    Example 1: (4%*$250,000 + 7.99%* $50,000)/$300,000 = 4.69%
    Example 2: (4%*$250,000 + 7.99%* $20,000)/$270,000 = 4.29%
    Note: Above Blended Rate assumes the same loan term for both loans
    When a Condo is Costing You More Than a Single Family Home

    When a Condo is Costing You More Than a Single Family Home

    Do you know how to determine when a condo is costing you more than a single family home? For example, did you know that a $580,000 Condo could cost you more to own per month than a $630,000 Single Family Home? I promise, it’s not a trick question. Let me show you when a condo is costing you more than a single family home.

    Condo vs Single Family Home

    Recently, I had a client who was trying to determine which home to purchase, a condo vs single family home. They wanted to get the best home for their money but not break the bank on their monthly budget. In the end, they narrowed their choices down to two possibilities. 
    The first choice was a beautiful $580,000 condo and, the second, was a larger, single family home being sold for $630,000. The neighborhood, space and overall design of the single family home matched their needs better than the condo but the home was on the top side of their budget. For that reason, they thought the less expensive condo would make better financial sense. It sounded like a logical conclusion. 

    Financial Review Is Key

    However, a financial review is key for a true analysis. After I conducted a complete financial review of the two possibilities, I found the less expensive Condo would have cost them more money per month than the Single Family Home. You might be asking- “how’s that possible?”

    The reason – there are more monthly expenses associated with homeownership than just the loan. Besides the principle and interest that will be due on any loan you will also have to pay some combination of taxes, insurance and possible HOA (Homeowner Association) fees. These are not all created equal. For my clients, I knew that the larger loan required for the single family would cost them an additional $290 per month. However, the combination of the higher tax rate in the condo’s city as well as a higher homeowner association fees would cost them an additional $410 per month. That means the condo would actually cost them an additional $120 more per month to own.

    Complimentary Financial Review

    By reviewing all the financial facts, my clients not only got the house they really wanted but also saved themselves a $120 a month. So before shopping for your next home, give me a call and I will be happy to conduct a complimentary financial review of your situation. #notallbrokersarecreatedequal