By Ben Johnson
As the home loan, industry falls behind in Michigan it has become increasingly important to find out how to get the best deal on a Michigan refinance. The prices of houses are lower and affordability is prevalent at this point in time. The fact is that homes could be depreciating so the government has stepped in and introduced many relaxed home lending criteria to certain segments of the market.
FHA loans provide an easy way to for home buying and refinancing alike. Clients often prefer fixed rates with the government insured loans. With these loans, you get to refinance up to 97.75 percent of the value of your home.
By refinancing in this manner, one can get lower interest rates and get loans for up to eighty five percent of the value of the home. This improves cash flow and monthly payments are less. This could even happen if you have no equity in your home.
Government has introduced a rate break option that affords one the luxury of paying 1% less for the first twelve months, this further increases cash flow. Most of the lending houses in Michigan offer this option.
If you owe less on the mortgage than what your home is worth, you already qualify for already discounted refinancing mortgage rates. However, if you owe more than the value of your home and you have not qualified before, you may qualify now.
Due to innovative thinking on the part of the government, in excess of five million people can now refinance where previously they could not. This will be of great value and assistance to those that are struggling to make monthly payments and could be facing foreclosure.
Government provides loan modifications for those who are able to provide proof of financial difficulty as a result of jobless, income reduction, over indebtedness or increased interest rates. Only a small percentage of homeowners will be able to qualify for this refinance plan.
Improving your cash flow is the principle reason that one would opt for this. This will enable you to keep your home and manage your budget far better. The media is active in promoting this so be sure you understand all the implications of this option.
Extending your loan term will decrease your repayments by extending the loan from 20 to 30 years. If you want to repay your loan over a shorter time, you should rather opt for a shorter loan term.
Many reason exist for doing this and the three main reasons are, lower interest rates, flexibility and value of the property. The lower interest rate is obviously the biggest motivator. Options are many and these include: fixes rate mortgages, 3-5 years arms and interest only mortgages. Ensure you have selected the best option for you that will especially fit in with your budget.
How to get the best deal on a Michigan refinance poses problems in that there are so many options available to you. As there is a multitude of options from which to choose, do due diligence and find the one that works best for you.
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Topics: Mortgages | Comments Off
MLA Style Citation:
Johnson, Ben "Super Inside Info On How To Get The Super Deal On A Michigan Refinance." Super Inside Info On How To Get The Super Deal On A Michigan Refinance. 25 Jun. 2010. uberarticles.com. 8 May 2015 <http://uberarticles.com/finance/mortgages/super-inside-info-on-how-to-get-the-super-deal-on-a-michigan-refinance/>.
APA Style Citation:
Johnson, B (2010, June 25). Super Inside Info On How To Get The Super Deal On A Michigan Refinance. Retrieved May 8, 2015, from http://uberarticles.com/finance/mortgages/super-inside-info-on-how-to-get-the-super-deal-on-a-michigan-refinance/
Chicago Style Citation:
Johnson, Ben "Super Inside Info On How To Get The Super Deal On A Michigan Refinance" uberarticles.com. http://uberarticles.com/finance/mortgages/super-inside-info-on-how-to-get-the-super-deal-on-a-michigan-refinance/
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