This week rates have not looked as good as they have in past weeks. The mortgage industry in Michigan has taken another hit with banks declaring certain areas in Michigan to be in declining markets, which can reduce the loan amount by 5%.

Here is how a cash out refinance scenario for February 20, 2008.

Mortgage Type: 30yr Fixed rate (there is an ARM, 40yr fix, even 50yr fix)

Mortgage Purpose: Cash out (pulling money out to pay off debt or use to fix homes)

Mortgage Amount: $200,000 (amount financed)

Credit Score: 700 middle score (you get three scores, 1 from experian, 1 from equifax, and 1 from trans union)

Loan to Value: 80% (amount owed to what your home is worth)

Escrows: Full (escrowing taxes and insurance with bank)

Property Type: SFH (single family home, condo, townhome)

Units: 1 (you may own a duplex which would change the number of units) 

Property State: MI (where home is located)

Occupancy: Owner Occupied (you live in home full time, you could have a second home or investment property)

Doc Type: Full (you can provide W-2's, or tax returns that prove you make what you say)

Lock Period: 30days (period in which you have to close your mortgage to get the rate you were quoted, also keep in mind you have a 3 day right of recision, so get your stuff taken care of ASAP to avoid losing your rate or being charged for falling outside of the lock period) 

Based on this criteria todays rate would be 6.375%.  As I said earlier mortgage rates are not as pretty as they have been. If you are on an ARM the best thing you could do is get all your information into a mortgage specialist, so that when the rates take their next major dip you won't be praying that you get all of your stuff in, so they can lock the rate.

Competition rate from major lenders:

Bank of America 6.625% (.00744 up front points) (this works out to be .00744% X $200,000= $1,488 in additional closing costs)

Communnity Financial Credit Union: 6.375% (they are charging .25% up front) (this would cost you an additional $500 in closing costs) (this is a credit union) (they usually have some of the best rates) (not this time)

 If you would like a mortgage rate quote or to find out what rates would be for you personally you can call or email me, and we can setup a loan to meet your personal needs. You can also visit http://www.oaklandlivingston.com/financing.html to fill out a pre-qual form.