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Grand Oak Mortgage | Grand Blanc | Michigan

Michigan Refinance Frequently Asked Mortgage Questions

  • When should I? My rate is good? When does it make sense?

    The common myth is you need to save 1% on the rate in order to benefit from refinancing. This is true, if your mortgage balance is under $125,000. However, if your mortgage balance is greater then $125,000 you could benefit from refinancing by reducing your rate by less then 1%. Another reason to refinance would be to eliminate or reduce monthly Private Mortgage Insurance (PMI).
  • Fees?

    The average closing costs to refinance a home is $2,000. The standard third party costs consists of appraisal, credit report, closing fee, title insurance, recording fee and underwriting fee. In most cases, closing costs are rolled into the new loan amount. Therefore, no funds are needed out of pocket.
  • Any tax advantages?

    None
  • How often can I refinance?

    You can refinance as often as you want. As long as you can prove a Net Tangible Benefit to refinance.
  • What is involved in a refinance? Time, documents, fees?

    You will need to supply income, assets and current mortgage information in order to get the loan approval. An appraisal will be ordered to determine how much equity is in the home. The typical time from loan application to closing is 30 days or less.
  • Can you refinance an existing home equity loan?

    Yes, we often will combine a first mortgage payoff with a HELOC payoff. Consolidating both mortgages can save you lots of money monthly, in addition to making one easy payment.
  • Can you combine a VA loan and First time Home buyer? If not which would be better, and how are they different?

    Yes, VA loan guidelines allow for First Time Home Buyer's. The VA loan program is the only program offered with 100% Financing and NO private mortgage insurance (PMI).
  • Can you use a VA Loan to purchase a condo?

    Yes, VA allows for financing on Condo's. However, the Condo Project and Association must be approved. Typically, the lender requires a Condo Questionnaire to be completed.

Michigan Mortgage Buyer Frequently Asked Mortgage Questions

  • Advantages of being a home owner?

    Possible tax deductions for interest paid on the mortgage and property taxes. As homes appreciate in value, you will earn equity in your home. You own your property and can do with it as you please.
  • What factors in mortgage approval?

    Credit scores, income and current monthly debt and liquid assets to close. These are the three primary factors to determine what loan programs you can be approved for and how much of a home you can be approved for. The higher the credit scores, the more loan programs and options you will have available. Conventional FHA, VA and Rural Development programs are the most common programs for today's home buyers. Pre-qualification and pre-approval? What is the difference?
    A Pre Qualification is usually provided over the phone or in person with out providing any documentation to confirm credit, income or assets.
    A Pre Approval is preferred by Realtors and Sellers alike. A Pre Approval requires the prospective buyer to provide W2's, tax returns, pay stubs, bank statements, etc. This information is reviewed, credit is pulled and the Loan Officer informs you of the loan programs you are eligible for and how much of a home you can be approved for.
  • Down payment? How much min and suggested?

    Loan programs offer different down payment minimums. Rural Development offers 100% financing or $0 money down. FHA requires a minimum of 3.5% down. Conventional offers 3% - 5% down payment. If you are looking to purchase a second home or investment property, you will need 10% - 20% down for Conventional loan programs.?
  • What are points?

    Discount points are ofter to referred to as "Points". A point represents 1% of your loan amount. If you bring 1% of your loan amount to closing, you can reduce your payment by 1/4% in rate. On a $100,000 loan, you would have to bring $1,000 additional to closing. If you did so, your monthly payment would be reduced by $12/month. Points are optional, the buyer decides whether or not they want to pay them.
  • PMI?

    Private Mortgage Insurance (PMI) is required on Conventional loans, unless you have a 20% down payment. The monthly PMI charged when a down payment of 3% - 19% is used. The more money down, the lower the monthly PMI. Private Mortgage Insurance (PMI) can be eliminated once you receive 20% equity in the home.
    FHA loans requires Private Mortgage Insurance (PMI) no matter how much of a down payment you have. The PMI is on for the life of the loan. VA loans DO NOT require any monthly PMI. Rural Development (RD) loans require monthly PMI and remains on the loan for life.