More than a century ago, we provided our first mortgage loan in Northern Michigan. Today, we are one of the top home lenders along the lakeshore. Turn to us when you’re ready to refinance your mortgage to save money on interest, lower your monthly payment, or convert home equity to cash.
What does it mean to refinance your mortgage?
Refinancing your mortgage means taking out a new home loan to replace (pay off) your current mortgage loan. Homeowners typically refinance when they can get a lower interest rate on a new loan, want to change the loan term to pay off their mortgage faster or lower the monthly payment, or need to borrow against some of the equity they’ve built.
Types of Mortgage Refinance
The two primary types of home loan refinancing are:
- Rate and Term Refinance: Change your interest rate from adjustable to fixed, lower your rate, or change your loan term to lower your monthly payments or pay off the loan faster.
- Cash-out Refinance: Borrow more than the balance of your current mortgage loan and pocket the difference as cash to use however you want to such as home renovations, college expenses, paying off credit card debt, and more.
When To Refinance Your Mortgage
Taking out a new mortgage loan involves paying closing costs, just as you did for your original home loan. So, before you refinance, ask yourself if you plan to stay in your home long enough to recoup the costs of refinancing through savings on interest.
People typically refinance when interest rates drop in order to secure a lower fixed rate on their mortgage. However, a cash-out refinance may make sense at any point when you want to borrow against your equity at an affordable rate.
Ready to refinance a Mortgage?
Refinance your mortgage loan with an experienced, locally-based mortgage lender in your community. We possess local expertise in real estate markets along the lake shore spanning from West Michigan all the way to Northern Michigan. Our local loan processing gets you to closing days faster. Contact one of our mortgage lenders in Traverse City, Ludington, or Manistee, or apply online now!