The mortgage brokers with Gem Home Loans want to make it as easy as possible for you to refinance your home in Birmingham, Michigan. We will make sure you not only understand the benefits of refinancing, but the disadvantages as well. That way, you can make the most informed decision possible as to whether or not refinancing will be right for you.
There are, unfortunately, some mortgage companies that will try to pressure people into accepting one type of refinancing. But at Gem Home Loans, we don’t work that way. We’re client-focused, not money-focused. Sure, we want to turn a profit just like any other business – but we will never try to force our clients into a preconceived box to make that happen. We have a deep understanding of the Birmingham housing market, as well as the Michigan market as a whole. We’ll help you take advantage of that knowledge.
Our top priority is to have a complete picture of your financial situation, and what you’re trying to achieve. You’ll find a level of personalized service that you just won’t find through the typical bank. When you succeed, we succeed – and we’ll do what we can to make that happen.
In a nutshell, when you refinance your house you’re simply switching out your current mortgage for one with lower payments each month. But that’s not the only reason people refinance. Some want to change the type of mortgage from a fixed-rate to an adjustable rate, while others will want a cash-out refinance. They can use the money to pay off credit cards, make renovations, or anything else they choose to do.
You may assume that refinancing will be great for you and your family, and in many instances that’s exactly the case. But there are some instances where it might not be such a good idea. Just because interest rates have dropped, that doesn’t mean you’ll be better off refinancing your home as fast as possible.
Most experts agree that refinancing is a good option if it will reduce your interest rate by at least 1 percent. You’ll save a lot of money each month, and you’ll also be able to buildup the equity in your home much faster. If rates drop low enough, and your financial situation allows, you might even want to consider switching from your current 30-year mortgage to a 15-year mortgage. There’s even a chance you could do so without substantially raising the amount of money you pay each month.
On the other hand, closing costs could be significant. If you owe $150,000 on your home, your closing costs to refinance will probably be anywhere from 3 percent to 6 percent. That could mean you’d be paying as much as $9,000 on closing costs. If you’re planning to leave your home in three or four years, then a refinance may not be worthwhile.
Gem Home Loans has a team of mortgage brokers who will always have your best interests at heart in Birmingham, Michigan. If we believe refinancing is a good idea, we’ll tell you. If we believe the opposite, we’ll tell you that as well. Contact us today for an honest answer to your refinancing questions by using our online form or calling (248) 780-1030.