Question 1

When should I refinance?

Accepted Answer

It's generally worth a look when rates are meaningfully below your current note rate — even 1% can trim your payment. The right answer depends on your balance, remaining term, closing costs and how long you plan to stay. We'll run the break-even with you at no cost.

Question 2

What are points?

Accepted Answer

A point is 1% of the loan amount — one point on a $100,000 loan is $1,000. Discount points are paid up front to lower your interest rate. Lenders sometimes quote in basis points: 100 basis points equals one point.

Question 3

Should I pay points to lower my rate?

Accepted Answer

Usually yes if you'll stay in the home for several years, since the monthly savings eventually outweigh the up-front cost. If you expect to sell or refinance within a year or two, the savings may not recoup the cost.

Question 4

What is an APR?

Accepted Answer

The annual percentage rate expresses the cost of a mortgage as a yearly rate, including points and certain credit costs. It's designed to help compare loans on a level playing field, but it doesn't change your monthly payment — that depends on the note rate and term.

Question 5

What does it mean to lock the interest rate?

Accepted Answer

Rates can move between application and closing. A lock guarantees your rate for a specified period, often 30 to 60 days, protecting your payment while the loan is processed.

Question 6

What documents do I need to apply?

Accepted Answer

Signed sales contract and riders, proof of your deposit, two years of W-2s and tax returns, 30 days of pay stubs, two months of bank and asset statements, photo ID, and information on other properties or debts. Every file is unique, so we may request additional items.

Question 7

How long does closing take?

Accepted Answer

Most purchases close in 21 to 30 days once we have a complete file. Streamline refinances are often faster.

Question 8

Do you lend outside Michigan?

Accepted Answer

Yes — we're licensed in Michigan and Ohio and work with borrowers throughout both states.

Frequently asked questions