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!
Posts tagged Home Affordability
No appraisal needed – Refinance now
Purchasing an Investment Property
Investment properties (buying a home with the intent to lease to a tenant) are at all time highs, taking up 20% of all purchase transactions in the last 12 months. Big reason for this is that in today’s environment, the home will cash flow immediately.
Most investors are purchasing properties for $100,000 or less and paying cash for these. Here is what you need to know if you are looking to finance an investment property.
- Residential Mortgage Transactions only apply to 1-4 Unit Properties
- Lenders are typically requiring a 25% down payment
- 10% down payment options available on Fannie Mae HopePath Properties
- Non-Homestead property taxes are about 33% higher than that of a primary residence
- Tighter Underwriting requirements – Need more money in the bank after closing
We have a few years experience owning investment properties, and many more years financing these properties in Michigan. Housing affordability is at all time record levels and interest rates are near historic lows, so now is a great time to be an investor. Call us with questions!
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