• Michigan Cash-Out Refinance Guidelines

  • Michigan Cash-Out Refinance Guidelines – Lower Monthly Payments & Extra Cash In Hand

    A Cash-Out Refinance for your Michigan Mortgage can help you lower your monthly payment and put cash in your pocket.With home values spiking over the last 18 months in Michigan, we have had a slew of “cash-out” refinances take place that had been non-existent for years.  The “cash-out” refinance allows a borrower to tap into the equity they have built in their home.

    This was almost an impossible task in 2008, 2009 and 2010.  The recession hit first in Michigan in late 2006 and it was one of the hardest hit states because of the collapse of the auto industry, but now there are many who can again take advantage of the bounce back in housing values in 2013.

    Get a free, personalized mortgage rate quote online fast and easy to help determine if refinancing is right for you.

    How Do Cash-Out Refinances Work In Michigan?

    This transaction will largely depend on the current appraised value of your home. Below are the guidelines for each property type and the % of the appraised value that you are allowed to borrow.

    Cash-Out Refinance For a Primary Residence:

    • 85% loan to value:  This is the maximum limit.  You would be required to carry private mortgage insurance (PMI).
    • 80% loan to value:  No PMI is required but the mortgage rates and fees will be slightly higher than a purchase transaction or regular “rate and term” refinance
    • 75% loan to value:  You will qualify for best case mortgage rates at this level

    Cash-Out Refinance For a Second Home:

    • 75% loan to value:  This is the maximum limit and you will qualify for best case mortgage rates.

    Cash-Out Refinance For an Investment Property in Michigan:

    • 1 Unit – 75% is the maximum loan to value.
    • 2-4 Units – 70% is the maximum loan to value.

    When Does a “Cash Out” Refinance Make Sense?

    • Pay for College tuition
    • Pay off a 2nd mortgage with a high interest rate
    • Pay off high interest rate credit cards or consumer debt

    Please call us to discuss your situation and if a “cash-out” refinance makes sense for you!

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