What is refinancing? Simply put, it’s getting a new mortgage to replace your current one. When you refinance, your new loan will be paying off your original loan while your new monthly payment will be based on the new rate and terms you lock in.
One type of refinance is a cash-out refinance. The maximum loan amount for this type of refinance is 80% of the appraised value of your home. This product allows you to capitalize or “cash in” on the equity you’ve built, then use it toward cool things like college tuition, weddings, a new car, and more.
Now’s the time to refi to achieve lower monthly payments; we’re the lender who makes it easy, so talk with one of our crew members today and start the process!
Michigan refinances frequently require appraisals, inspections, credit inquiries, and other fees. That said, these fees may be covered by your home’s equity in a cash-out refinance.
Additional things to consider when refinancing:
There are many benefits when you refinance your mortgage In Michigan! Here are a few reasons:
Aside from having the coolest mortgage staff on the planet…working with Treadstone on your mortgage in West Michigan gives you a distinct advantage in not only getting your offer accepted, but also in becoming a more successful and enlightened home owner.
Manufactured Home mortgage rates fluctuate daily based on several financial indicators and trends, just like gas prices.
When you refinance, your original home loan is replaced with a new one— that’s it! The difference in loan terms, amounts, and interest rates determine if you can take cash out, reduce your monthly payment, or shorten your loan term— sometimes all of the above!
Many Michigan refinances require an appraisal or an inspection to move forward with the transaction, just like your original loan may have required. Some home loan refinances, known as a streamline refinance, do not have as many requirements, including home inspections or credit inquiries. Your Loan Officer will have more information on the requirements for your home loan refinance in Michigan.
It completely depends on your home’s equity and your desired loan terms.
If you intend on cashing out your home’s equity, you’re able to proceed with the transaction when you have much greater than 20% home equity. This is because the maximum refinance amount is 80% of your home’s value.
If your refinance is non-cash out, you and your Loan Officer will have to determine if it’s financially advantageous to refinance. Typically, if refinancing for a lower rate, a rate decrease of 1-2% or more may make refinancing worthwhile.
Most Michigan refinances share the same closing costs (appraisals, title fees, etc.) which amounts to a small percentage of the loan amount. We’ll help you find Michigan mortgage and refinance rates well below the national average so you can apply and start saving on your home today.
In many cases, there is no waiting period to refinance your mortgage. However, you must wait six months after your most recent closing (usually 180 days) to refinance your mortgage if you’re taking cash–out.
Like all credit inquiries, refinancing may play a role in short-term credit score calculations. Refinancing can significantly lower your debt amount and/or your monthly payment, which is beneficial for your credit. In short, don’t worry about your credit!
If you change your employment prior to an active mortgage transaction, be sure to notify your Loan Officer so that they can update your pre-approval. If you change your employment during an active mortgage transaction, you will want to inform your Loan Officer ASAP to ensure that you are still qualified for the mortgage. Your Loan Officer will contact your employer prior to closing to confirm your employment so be honest and up-front with any employment changes as you don’t want any surprises at the last minute.
To avoid PMI (private mortgage insurance) on a Conventional Loan, you must have 80% or lower loan to value ratio. In other words, you must have 20% equity or greater. There are options to avoid paying PMI monthly; you can ask your Loan Officer about these options.
To refinance your mortgage, get in touch with a Loan Officer! They want the best for you and your financial health and will be able to guide you through the entire process, from start to end!
Feel free to start filling in our application!
