Howell Michigan Refinance and Purchase Loan Information
Historic Howell, Michigan is a popular area to move out away from the city yet still have a suburban feel and easy access to major highways.
Howell, Michigan isn’t just a great rest stop on you way to Lansing or Detroit where you can get great deals at the outlet malls. This town is the heart of Livingston Country, filled with great places to live and many things to do. Most notably, Howell is the location of the Michigan Challenge Balloonfest, a great family time where you can take a hot air balloon ride over the beautiful Michigan landscape. You can also check out numerous other festivals including the Legend of Sleepy Howell Halloween festival.
One of the great things about Howell is the vast variety of housing options. Along with a revived home builder market popping up new homes at a fast pace, Howell also has a large condominium market taking up 22% of homes in the area. So whether you are looking to refinance your mortgage or purchase a new home, you need to be well aware of the options available to you to make smart financial decision.
Refinance Your Mortgage in West Bloomfield to Pay Off Your Loan Faster
Howell was no exception to the housing crises here in Michigan. Home Values dropped from an average of $227,000 in 2006 all the way down to $138,000 in late 2011. Things are finally starting to pick up here in 2013, slowly climbing to an estimated average of $164,000 in July 2013. If you are interested in checking out more trends in home prices in Howell, check out the Zillow application here.
As home values rise, more people are starting to earn equity in their home again and have more refinancing options available to them. Whether you are looking to save money via lower monthly payments or over the life of the loan, there are different ways you can do that.
HARP 2.0 Refinance Program: This program has become more and more popular in Michigan (5th highest state for HARP refinances). If you are still underwater on your home, meaning you owe more than it is worth, this program will allow you refinance at a lower rate regardless of your homes value. There are a few guidelines to qualify for this program, so make sure to give us a call to see if you can take advantage of this amazing opportunity.
Refinance Back to a Higher Term: If you have say 25 years left on your current mortgage, you have the opportunity to refinance back to a 30 year mortgage. While this does add an additional 5 years to the mortgage, the longer term and lower interest rate typically means you can save hundreds of dollars each month on your monthly payment. If you are looking to free up cash flow for your monthly budget, this is one of the strongest ways to do it. And if you are lowering your rate a significant amount you still could end up saving money over the life of the loan.
Refinance To A Lower Term: Looking to get the mortgage paid off quicker and save as money money as possible over the life of the loan? Look into refinancing into a 20 year or 15 year mortgage. The lower rates that come with these terms means a much higher amount of your payment will go towards paying down the principal balance, thus saving you thousands in interest.
Cash Out Refinance: If you have gained equity in your home again, you can consider a cash out refinance. This allows you to tap into your home’s equity that you have earned to pay for other things such as college tuition. Find out the guidelines for Cash Out Refinances here.
Purchase Loan Options for Howell, Michigan
Going along with Howell’s wide variety of housing options in Howell is a variety of purchase loan options available to you. Here is a quick breakdown of the different types of loans we help people purchase a home:
Conventional Mortgages: This is the most popular option when buying a new home. It requires a minimum of 5% down payment which can be paid for with gift funds. If your down payment is under 20%, you will require monthly mortgage insurance and usually a full appraisal. Sometimes a full appraisal is not required if your credential as a borrower is very strong. Debt to income ratios usually must be in the range of 41% to 45%. Your credit score typically needs to be over 680 to qualify for conventional financing.
FHA Financing: FHA financing is generally less restrictive that Conventional Financing. If you have less than strong credit, you may be forced to go this route. The good news is that the minimum down payment is only 3.5% and gift funds can be used for not only the down payment but the closing costs as well. Debt to income ratios often can be expanded to up to 56%, but monthly mortgage insurance and upfront mortgage insurance will be required with small down payments. A full appraisal is also required for FHA loans. Some sellers do not like accepting FHA offers, but it often is one of the only options for some home buyers.
Rural Development (RD) Loan:This is a great option for people looking to buy a home in Howell as all of Livingston County is eligible for this program. The best perk of this program is there is absolutely no down payment required. That’s right you can buy a home for no money down! There are some income restrictions for this program, so give us a call to find more about this program or see if the home you’re looking at is eligible.
First Commerce Financial Can Fill All Your Mortgage Needs
As a mortgage broker just down the road from Howell off of I-96, we are able to help you purchase a new home or discuss your refinance options. We will use our network of lenders to get you the best rates possible on a new mortgage. Give us a call and we’ll walk you through all your options available so you can make good financial decisions that best fit your situation.