What makes Gem Home Loans the best mortgage company in Plymouth, Michigan? There are a lot of reasons why we feel we stand out among all others in the area. One of the most important is that we always act in our clients’ best interests. We want you to make the most informed decision possible, and we’ll give you all the information you need in order to make that happen.

Refinancing a Home 101

Best Mortgage Company Plymouth, MichiganOne example of our approach is refinancing a home. There are a lot of scenarios where refinancing is a fantastic idea. There are other times when it’s not such a great option. Some mortgage companies don’t really see a distinction. They’ll try to push you toward refinancing, whether or not it’s right for your specific financial situation. At Gem Home Loans, however, we’ll take the time to spell out all of the advantages and disadvantages, and then recommend the best course of action.

Basically, refinancing a home means changing out an old mortgage for a new one. The new mortgage will typically result in lower monthly payments, making it extremely attractive. There are, though, some people who refinance in order to change the kind of mortgage they’re paying. They might, for instance, want to switch from an adjustable to a fixed rate mortgage, or vice versa.

Some homeowners might want to refinance for a completely different reason. They might want to pursue a cash-out refinance so they can renovate their home, pay off vehicles or credit cards (or both), or just take a really long vacation.

Is it the Right Option for You?

Whatever your motivation might be, it will be really important that you take the time to truly understand all of the pros and cons of refinancing. Like we said earlier, it could be a really good idea, or it could be a really bad idea.

If you can lower your interest rate by at least 1 percent, then refinancing is a really good option. Not only will you save a substantial amount of money each month, you’ll also build equity a lot faster. There’s even a chance you might want to consider switching to a 15-year mortgage from a 30-year mortgage. If you have a strong enough financial situation, you’ll pay thousands and thousand of dollars less in interest.

But it will also be important to realize that you could be paying very large closing costs if you refinance. If, for instance, you still owe about $150,000, the closing costs will probably be somewhere between 3-6 percent. That means you could pay up to $9,000. A refinance probably wouldn’t make a lot of financial sense if you plan to leave the home fairly soon – say, in three or four years.

Not every mortgage company would take the time to spell out the advantages and disadvantages of refinancing – but we do. That’s just one of the many reasons why we stand out among all other companies in the area.

See for Yourself

Find out why a lot of our clients believe Gem Home Loans is the best mortgage company in Plymouth, Michigan. You can give us a call at (248) 780-1030, or you can use our convenient online form. One of our experts will have the answers you need to all of your questions.