Think about committing to a payment plan and become one of the 150 alumni brothers needed to SmackDown the mortgage by 2026!

March 16, 2013

On this date almost 7 years ago The House Corporation refinanced the house lowering the interest rate from 7% fixed to a much better deal of 4.09%.  Because the House Corp is basically an educational boarding house the House Corp is only eligible for institutional mortgages.  Institutional mortgages are different form residential mortgages. The principal on March 27, 2013 was $320,145.28.  But there was a catch.

In order to secure such a good deal, we had to agree to some flexibility.

March 16, 2018

On this date, just two years ago, the honeymoon rate of 4.09% expired and the new rate of 5.84% was implemented.  This means that the monthly mortgage payment went from $1965.53 to $2202.45.

March 2020

Present day.   The interest rate is holding at 5.84%.  The monthly payment remains $2202.45.  The balance on the mortgage is $239,368.78.

March 16, 2026

Future.   Remember how I mentioned a catch in order to receive a discounted rate on our mortgage?  Almost 6 years from present day a one-time payment is due which is for all remaining principal and all accrued interest not paid.   This amount will be a daunting balloon payment around $169,000.  Assuming only minimum payments are made through 2026.

We need $30,000 per year for the next 5 years to avoid the balloon payment of $169,000 in 2026.  Collectively we can tackle this fairly easily.  Can we can get 150 of us to contribute?

Here is what the House Corp is proposing:

150 brothers to pledge $240 a year for the next 5 years, $400 for 3 years, $600 for 2 years, or a one-time payment of $1,200. Whatever works for you. Of course, you can always donate more. 

Whatever option you choose 100% of your donation will go toward the mortgage!  It will not be used for any other purpose.

Don’t let George do it, make a difference. Click below and make a general donation today for any amount!

Specify your donation to go specifically towards the mortgage principal or where the need is most.