If you’re trying to determine if the time is right to refinance a mortgage in Northville, Michigan, get in touch with Gem Home Loans. There might be a lot of advantages to refinancing in your case, but there could also be some disadvantages. Let us spell out the pros and cons before you make your final decision.
While we obviously want to make money, we’ll never do it at the expense of the people we’re proud to call our clients. There are far too many lenders that view their clients as nothing more than dollar signs. As a result, one of their representatives might say go full speed when a refinance, when the truth is you’ll be hurting yourself in the process.
Gem Home Loans is different. When you work with us, one of our experts will carefully consider all of the benefits and drawbacks of refinancing. We have a deep understanding of the Michigan home market. We’ll put that knowledge to work for you. It might very well be the case that refinancing would make complete sense. Or, it could be that you’d be better off waiting for a while, or simply sticking with your current mortgage.
Whatever the right answer may be, you can rest assured we’ll give it to you. We won’t make a recommendation based on how much money it will make us. We’ll make the decision based on what’s truly right for you and the ones you love.
In order to make sure you know whether or not you should refinance, you first need to have a basic idea of what refinancing is. If you’ve gone through the process, then you obviously know what it’s all about. But if you haven’t, you at least need to know what refinancing actually entails.
Basically, when you refinance you change the terms of your mortgage. You’re trading one mortgage for another – hopefully, the new mortgage will have a substantially lower interest rate. The refinancing company will pay the old mortgage off and then replace it with the new mortgage.
You might want to refinance in order to reduce your monthly mortgage payment, or to get a lower rate. Or, you might want to change the kind of mortgage you have – maybe switching from a fixed-rate mortgage to an ARM (adjustable rate mortgage), or vice versa. Others will opt for a refinance that allows them to get a big chunk of cash, since they’ve been able to build up a lot of equity.
Regardless of the reason, you’ll need to take a hard look at all the advantages and disadvantages of refinancing. This is a huge decision, one that will impact your financial life for years to come.
Maybe the most important reason to refinance is to get a reduced interest rate. If you can drop yours by at least 1 percent, then it probably will be a good decision. At the same time, however, there could be hefty closing costs that could reach into the thousands. Will you be in the home long enough to recoup those costs?
These are just some of the questions regarding refinancing a mortgage in Northville, Michigan that Gem Home Loans can help you answer. Get in touch by giving us a call at (248) 780-0601 or contacting us online.