As you consider whether to refinance your mortgage in Farmington Hills, Michigan, Gem Home Loans can help you understand the pros and cons.

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

Refinance Mortgage Farmington Hills, MichiganOur goal is to fully understand your family’s needs and find you the best available home loan for your new home, second home, or investment property. We are dedicated to providing you with the highest level of personalized attention and customer service throughout the home financing process.

Why Choose a Mortgage Broker?

As mortgage brokers, Gem Home Loans will manage the entire rate-shopping and loan application process on your behalf. Mortgage financing is our specialty. We can save you time and stress by negotiating on your behalf. We work with different types of lenders, including those who specialize in servicing people with adverse credit, and can leverage our relationships with mainstream banks.

Just like your real estate agent, we work for you and don’t get paid unless you close your loan. In general, this makes us more accessible than bank employees. We have decades of residential loan experience, so we know what to look for to ensure your process goes smoothly.

We are paid by the lender. We do not charge you for our services. Instead, we are compensated by the institution that is financing your mortgage.  Due to stringent regulations, each lender pays us similarly, which means our goal the same as yours — to find the best solution possible!

Popular Reasons to Refinance & the Pros and Cons of Each

1) Lower interest rate: Refinancing your mortgage could reduce your monthly payment and help you save tens of thousands of dollars in interest.

  • Pros: Your monthly payment will be lower.
  • Cons: Your 30-year term will reset, and you will pay more in total interest over the life of the new loan.

2) Switch to a fixed rate: If your original loan is an adjustable rate mortgage (ARM), you may want to refinance to a fixed rate mortgage.  Locking in a rate can protect you from rising interest rates in the future.

  • Pros: Your monthly payments will be the same every month.
  • Cons: If interest rates happen to drop, you would have to refinance to take advantage of them.

3) Shorten the loan term: With interest rates at record lows, consider refinancing your 30-year mortgage to a shorter term, such as 15 years.

  • Pros: You will save a lot in total interest and build equity in your home much faster.
  • Cons: Your monthly payment will most likely be higher.

4) Cash-out refinance: Instead of a home equity loan, you can refinance and cash-out a portion of your home equity.

  • Pros: Use the funds for major expenses like buying a car, paying for a wedding, financing an education, starting a new business, or want to buy more property.
  • Cons: You will reduce your home equity and, because the loan term will be reset to 30 years, you will pay more in total interest.

Nothing is more satisfying than a successful mortgage refinance that lowers the monthly payments on your home in Farmington Hills, Michigan. The usual process can be overwhelming, but Gem Home Loans can help. Call us at (248)-318-2394 or contact us online to discuss your refinancing options with one of our experts.