Rates are still at historic lows during this refinance boom, but there are still people not taking advantage in Michigan. What if we told you that No Appraisal is required on refinance transactions? Got your attention now? Let’s look at some numbers.
Currently, the average interest rate for home owners across the United States is 5.1%. At this time, 30 year fixed rated mortgages are at 4.25%. Say we have a borrower with a $175,000 loan and assume they are three years into their mortgage payments. By refinancing to the current rates and making the same monthly payment, they would save $46,500 over the life of the loan. Big money!
Right now, about one out of every five transactions we do are not requiring an appraisal. Yet the new 2011 HARP guidelines set to go in effect soon are hoping to bring that number up so that 4 out of 5 can refinance without an appraisal.
If you want to see how much potential money you could save by refinancing, you can check out our amortization tool for yourself on our site by clicking here. We’re going to let the math do the talking!