Have you ever worked with a mortgage company in Jenison, Michigan that didn’t quite live up to your expectations? Did you feel pressured into taking a loan that really wasn’t the best fit for your specific financial situation? Did they not explain all of your options, spelling out their pros and cons? If you answered “yes” to any of those questions, you need to talk to a professional with Gem Home Loans. We’ll not only exceed your expectations, we’ll make you a customer for life.
A lot of our clients get in touch with us because they’re interested in refinancing their home. In a lot of cases, this is actually a great idea. But there are other times where refinancing is anything but a good choice. Unfortunately, there are a few mortgage companies out there that really couldn’t care less either way. If they know you’re thinking of refinancing, they’re going to try to push you toward doing just that – whether or not it would be in your best interests to do so.
If you haven’t refinanced before, it basically means you’re swapping your current mortgage for a brand new one. You’ll more than likely wind with lower payments each month, and you’ll probably also get a lower interest rate. After all, that interest rate is the main reason you want to refinance in the first place.
But you might just want to change the terms of your loan. You’ve done really well financially, so you want to switch to a 15-year mortgage from a 30-year mortgage. Or, you might want to change from an adjustable rate to a fixed-rate mortgage because you want more certainty.
Whatever your reason, Gem Home Loans will spell out all of the advantages and disadvantages so you have the best possible idea of whether it will make sense to refinance.
Again, there are instances where refinancing will be smart, and others where it could eventually cause a lot of problems.
For example, refinancing will be a great idea of you’ll be able to lower your interest rate by at least 1 percent. You’ll build equity in your home even faster, and you’ll also shave a lot of money off of your monthly mortgage payment. If your finances are strong enough, this might be a good time to change to a 15-year mortgage. You’ll pay off the house much quicker, and you’ll save a ton of money on interest – possibly tens of thousands of dollars.
At the same, time, however, you’re going to need to understand the not-so-great side of financing. First, you’ll have to deal with closing costs. If, for example, you still owe $150,000 on your home, you’ll more than likely be paying anywhere from 6-9 percent at closing. That could mean you’d have to write a check for as much as $9,000.
If you’re planning to stay in your home for quite a few more years, refinancing could make a lot of sense. But if you think you’ll be putting the house on the market in three or four years, then you’ll probably be better off with the arrangement you already have.
The professionals with Gem Home Loans look forward to proving why we’re the best mortgage company in Jenison, Michigan. Put us to the test by contacting us online or calling (248) 780-1030.