In March of this year, our Membership voted unanimously to empower the Deacon Board to proceed with the IMAGINE2020 plan launched in 2018 to refinance our existing mortgage and secure a remodel loan up to $100,000.
Here is an update on how God is helping us accomplish this amazing objective.
GOALS
The goal of the refinance is to save the church money long term and position us for a brighter financial future
Our goal is to renovate our church building to provide a more welcoming and friendly facility for first-time guests, families, and the fellowship of the church family.
Remodel Master Plan
We plan to fully convert the Fireside Room into a multi-purpose studio for kids, youth, and adult ministries.
Project – Fireside Studio
We plan to fully convert the Fireside Room into a multi-purpose studio for kids, youth, and adult ministries.
Project – Lobby
We will renovate the hallway at the entry of the building by making an open-concept lobby.
Project – Mother’s Room
We will convert the old office into a new Mother’s Room.
Project – Worship Center (Stage / Media Booth)
We will paint and re-floor the Worship Center. We will renovate the stage and build an enclosed media booth.
Project – Offices
We will relocate the office upstairs where we can have two offices.
Project – Signs
We will replace the sign on the corner of Park & Floating Feather, and put a new sign on the building.
FINANCING
Actual construction costs may make all or some of the goals possible. We are currently accepting bids. We will see a savings of almost $300,000 with this plan.
We expect to begin construction this winter and have a goal to be finished before Easter 2021.
Current Mortgage:
- Loan Amount:
- Original: $533,000
- Remaining: $471,320
- Interest Rate: 7.750%
- Monthly Payment: $3818.48
- Terms: 20-yr. (balloon payment April 2031) / 30-yr. amortization (2041)
- Interest Cost: $330,000+/- between now and maturity
- Balance Due: $318,000+/- Due April 2031
During August 2020, the Deacon Board reviewed three offers for refinancing and unanimously decided to accept a new 15-year loan that will save the church almost $105,000 in interest, get us out of debt sooner, and infuse $100,000 cash for work on the remodel. It will also allow us to pay off an additional $318,000 over the next 15 years.
We also received counsel from the Southern Idaho Ministry Network Superintendent and area Presbyter, as well as from the mortgage company, AG Financial.
The only downside to the new mortgage is a $767/month increase in the monthly payment. In faith, we believe God will provide the increase needed to cover this expense because the benefit is so much more.
New Mortgage Offer:
- Loan Amount: Approx. $589,500
- Initial Interest Rate: 4.750%
- Monthly Payment: $4,585+/-
- Terms: 15-year term / 15-year amortization (2035)
- Interest Cost: $235,000+/-
- Balance Due: $0
As part of this process, we received a Brokers Opinion of Value (BOV). The BOV is used by the lending agencies to access the value of the church property as-is. The BOV concluded that the church building is worth $1,617,990 ($110/square foot, $110,000 per acre). This is an increase from $1,197,593 accessed in 2010. Therefore, our church property has increased in value $420,397 (35%) in 10 years. This increase will be updated on the fixed assets portion of the balance sheet at the end of this year.
PRAYER
- Will you continue to pray for us as we expect to close on the loan this week?
- Will you pray that we will find a competitive and affordable bid for the remodel?
- Will you pray that God will provide even more financially so that we can go above and beyond in the plans that he has for us?
- Will you pray that unity will be sustained through the pandemic and the construction process!
Leave a Reply