Is It The Right Time to Refinance Your Michigan Mortgage Loan?
The answer to that question really depends on your unique personal circumstances. That’s why while Inlanta Mortgage offers many options to help Michigan homeowners lower their mortgage rates or free up cash for renovations, college tuition or other important life events, we always recommend talking to one of our S.M.A.R.T. mortgage specialists before you apply.
When you refinance your home, you are paying off an existing loan with proceeds from a new loan. Generally, when you refinance you are taking advantage of improvements in your credit, built-up equity, changes to terms, or drops in market interest rates. Benefits of refinancing can include lowering your current payment, changing the term of your loan to raise or lower your amortization length, or borrowing against the equity in your home to get cash out.
With today’s historically low interest rates, many people find it beneficial to refinance to take advantage of great rates or to shorten the amortization period of their mortgages to reduce lifetime interest paid. Those not looking to cash out some of their equity will find our Streamline refinance options fast and easy.
For homeowners looking for home improvement cash, there are unique types of home loans designed specifically for renovation. There are also several types of general cash-out options. When rates are low, it can make sense to do a home refinance instead of a homeowner line of credit because you are also lowering your rate or amortization length (if desired). A new mortgage is often the most cost-effective approach to financing major projects that carry a long depreciation life and improve your home, such as swimming pool construction, a lifetime roof, or a long-term energy efficiency project like implementing geothermal heating.
Team Arnold and Team Ferrick will help you select the best option for your purpose. The following is an overview of options available for refinancing your mortgage loan. Talk to us about your goals to find the best fit. Determining the right refinance option for you will in part be determined by the type of home loan you currently have, your LTV (loan-to-value) ratio in the case of cash-out refinancing, and the current value of your home according to an appraisal.
Regular Refinance Options
- Conventional Refinance
- FHA Refinance
- VA Refinance
- USDA Refinance
Streamline Refinance Options
No-appraisal streamline refinances are used solely for the purpose of lowering the monthly mortgage payment. In other words, you don’t have the option of cashing out equity under the no-appraisal program.
- FHA Streamline Refinance – In order to refinance using the FHA Streamline Refinance program, your mortgage must already be FHA insured. The mortgage to be refinanced should be current (not delinquent). The refinance is to result in a lowering of the borrower’s monthly principal and interest payments. No cash may be taken out on mortgages refinanced using the streamline refinance process. Contact a mortgage loan professional at Inlanta Michigan to discuss FHA Streamline Refinance opportunities.
- VA Streamline Refinance – otherwise known as an IRRRL. This program lowers your interest rate by refinancing your existing VA home loan. No appraisal or underwriting package is required when applying for an IRRRL. An IRRRL may be done with “no money out of pocket” by including all costs in the new loan or by making the new loan at an interest rate high enough to enable the lender to pay the costs.
Cash Out Refinance Options
Access the equity in your home and get cash that you can use to meet all kinds of financial goals. The existing mortgage and any liens on the property are paid off and replaced with a refinanced mortgage.
- Conventional Cash-Out Refinance
- FHA Cash-Out Refinance
- VA Cash-Out Refinance
FHA 203K Rehabilitation Loans
FHA 203K Rehabilitation loans are an important tool for community and neighborhood revitalization. The 203K program offers borrowers the resources to rehabilitate a home that may be in need of repair. Borrowers have the option of refinancing with a 203K loan in order to make improvements on their existing residence or to purchase a new home in need of repairs.
HomeStyle® Renovation Loans
The HomeStyle® Renovation Loan program allows a borrower to renovate, repair, or improve a home or investment property. HomeStyle® combines a home purchase or refinance with home improvement financing in one loan with one closing. HomeStyle® renovation loans let you customize a home to your liking or make needed repairs.
VA 100% Cashout Refinance VA’s
VA’s Cash-Out Refinance Loan is for homeowners who want to take cash out of your home equity to take care of concerns like paying off debt, funding school, or making home improvements. The Cash-Out Refinance Loan can also be used to refinance a non-VA loan into a VA loan. VA will guaranty loans up to 100% of the value of your home.