In 2005, our Church completed the addition of the Gym, Fitness Center, Kitchen, Café and Foyer. At that time we took on a loan of $1,300,000 to finance the project. The loan has a term of 25 years and has an adjustable rate with the initial rate being 5.75% and adjusting yearly after the first 5 years.
Currently our loan balance is $860,000 and we set aside $85,000 per year from our budget to make the payments. As with any sizable loan, a significant portion of each month’s payment goes toward interest. In fact, if we were to make only our minimum payment for the life of the loan, even with no rate changes, we would pay over $330,000 in interest charges.
We believe that God’s plan for us is to pay off our debt as soon as possible. That is why one key part of Faith Moving Forward is debt retirement. If we are able to pay off the remainder of our debt over the next two years, we will save over $300,000 in interest charges. This will help free us up for possible future expansion.