In plain English, refinancing a mortgage is simply replacing an existing mortgage with another mortgage under different terms (typically more beneficial terms). One of the most common reasons people refinance a mortgage is in order to lock in a better interest rate. Under the new mortgage’s terms using the lower interest rate, homeowners can see lower monthly payments that add up to a significant savings over the life of the mortgage.
When you are looking to do a refinance mortgage in Michigan, Locked-IN Lending, LLC is your best choice of mortgage companies. We recognize that every homeowner’s financial situation is as unique as they are and tailor our service to your individual needs. Our loan experts pride themselves on ensuring you find the right mortgage with the best rates for you. If you have any questions at any time, please contact us. We’re here to help!
Lock into a fixed-rate mortgage with a lower interest rate
Lower your mortgage payments or home loan payments
Consolidate high-interest debt into one fixed-rate home loan
Use your home’s equity to receive cash
Shorten the length of your mortgage or loan term
Pay off your mortgage or home loan faster
The majority of homeowners have heard the phrase “refinancing” before, but may not fully understand it. They often wonder why refinancing would even benefit them. Well, refinancing your mortgage may lower your monthly payments or even reduce the number of years it will take to pay off your mortgage or repay your loan. With a lower monthly mortgage payment, you’ll have more cash in your pocket to pay off high-interest debt such as credit cards, medical bills, or simply spend it on something fun!
Rate-and-term refinancing for mortgages changes the rate and terms of a mortgage without adding any new money to the mortgage loan. This means that you will have a lower mortgage interest rate, and possibly other terms, while owing the same amount you did before the refinancing. A rate-and-term mortgage refinance does not disburse any cash to the borrower.
Cash-out refinancing is very much how the name suggests: you receive cash out of the new mortgage. This happens because the borrower takes out a mortgage with a larger principal than their previous mortgage in an effort to receive cash in their hand. The cash received is the difference between the new mortgage amount and the old mortgage amount. Basically, you are taking equity out of your home to have cash in your hand or bank account.
We get asked every single day by our clients whether refinancing is right for them. Each time, we answer “it depends”. We’re not trying to be aloof, it’s an accurate statement. Refinancing depends on both timing and interest rates, meaning that it’s only worth looking at refinancing if current mortgage interest rates are lower than your current interest rate. Otherwise, it wouldn’t save you money! Let our mortgage refinancing experts help you determine if the time is right and the numbers add up to savings for you.