There are several reasons you may want to refinance your home mortgage in Ann Arbor, Michigan. You could be interested in lowering the interest rate, reducing the monthly payments, or converting an adjustable-rate mortgage to a fixed-rate mortgage.

Refinance Mortgage Ann Arbor, Michigan

Gem Home Loans is a client-focused mortgage broker that prefers working one-on-one with clients to build custom financial solutions. We have a dedicated team of experienced professionals who understand Michigan and the local housing market.

We are dedicated to providing you with the highest level of personalized attention and customer service throughout the home financing or refinancing process.

What a Mortgage Broker Does

A mortgage broker is a middleman between you and mortgage lenders. We are licensed, insured, and trained professionals who have access to dozens of lenders and hundreds of programs, and we use those connections to shop around on your behalf.

Gem Home Loans specialists help you explore your many options. Through prequalification, we can quickly assess your credit based on your assets, debts, past credit use, and income, and tell you which choices are available.

It’s our job to help you find appropriate mortgage products with the lowest interest rates possible, apply for pre-approvals, gather up your documentation, submit your applications, and work with the lender you choose to get your loan processed as quickly as possible.

Are you wondering how we get paid? At Gem Home Loans, we do not charge you for our services. Instead, we are compensated by the lender we work with.  Due to stringent regulations, each lender pays us similarly, which means our goal the same as yours — to find the best solution possible!

Does It Make Sense to Refinance?

If you don’t know whether you should refinance your mortgage, you are not alone. Many homeowners see a drop-in interest rates or a rise in home values and immediately pick up the phone to talk about refinancing. But there are other important factors to consider.

The general rule of thumb is that, if you can reduce your current interest rate by 1% or more, refinancing may make sense because it will enable you to save money. It will also help you build equity in your home faster.

If interest rates have dropped low enough, you may also be able to refinance the mortgage to shorten its term—say, from a 30-year to a 15-year fixed mortgage—without any significant change in your monthly payment.

Also think about how much longer you intend to stay in your home, and weigh the cost of obtaining a new mortgage against the interest it may save you in the long run.

For example, let’s say $150,000 remains to be paid on your current mortgage. To refinance, you will pay closing costs to the lender that generally range from 3-6% of the loan amount. This means you would pay from $4,500 to $9,000 to refinance.

If you pay that at closing in cash, how many months of “savings” will it take to recoup that money and make refinancing worth it? If you plan to move in two or three years it may not be worthwhile, but homeowners who want to shorten their mortgage term or change to a fixed rate mortgage may benefit.

As you search for companies to help you refinance your home mortgage in Ann Arbor, Michigan, consider Gem Home Loans. Visit us online or call us at (248)-318-2394, and let us help you meet your financial needs.