Many homeowners in Rochester Hills and elsewhere in Michigan take advantage of refinancing a mortgage (replacing the current mortgage with a new one) to lower their interest rate and monthly payments. The reasons for refinancing can be just as varied as the financing options available through Gem Home Loans. At Gem Home Loans, headquartered in Rochester Hills, MI, we offer a variety of lending products and are confident that one will work for your home financing needs. We are mortgage brokers and partner with dozens of investors to find you the best rates, costs, and programs.
Refinancing a mortgage doesn’t just modify or adjust the existing loan terms. It creates an entirely new mortgage loan to replace the old loan with a new (and often lower) interest rate and a new monthly payment.
There are many reasons that homeowners decide to refinance. Some do it to take advantage of lower interest rates and a lower monthly payment. Others want to convert an adjustable rate mortgage (ARM) to a fixed rate mortgage. If you have built up enough equity in your home, you may also choose a cash-out refinance and borrow cash from your equity to reduce other debts, take a long-awaited vacation, or renovate your home.
Unfortunately, there are costs and fees associated with refinancing a mortgage. You will pay closing costs to the lender that typically range from three percent to six percent of the loan amount. They include loan origination fees, appraisal fees, title insurance fees, credit report fees, and mortgage points. If the closing costs exceed your budget, some lenders will waive them in exchange for charging you a higher interest rate. The lender may also allow you to include the closing costs in the new loan balance, which will cost you more money over time.
Depending on the reasons why your credit is less-than-perfect, there are many excellent loan options available through Gem Home Loans, including government programs. One of our mortgage specialists can help you determine whether or not you qualify for one of these programs.
Typically, your second mortgage would be paid off through the refinance and both loans would be consolidated into one new first mortgage. This means you would have just one mortgage payment each month. However, there are situations in which you may be able to refinance the first loan and keep your second mortgage intact. Gem Home Loans can help you determine if it’s the right solution for you.
Absolutely not. There may be some advantages to working with your current lender. For example, they know your payment history and may waive some of the closing costs to keep you as a customer. However, we recommend letting the specialists at Gem Home Loans compare quotes with several other lenders to be sure you’re getting the best rate. Gem Home Loans would be happy to see if refinancing your mortgage in Rochester Hills, Michigan makes sense for you. Complete the form on our site or call us at (248)-318-2394 and one of our specialists will help guide you to a solution that best fits your goals. We look forward to working with you!