Michigan Mortgage Refinance

Is your Michigan mortgage
still working for you?

Refinancing a Michigan mortgage means replacing your current loan with a new one — ideally with a lower rate, better terms, or access to your equity. Whether you bought at a high rate, have an ARM adjusting soon, finished building and need a permanent mortgage, or need cash for a major expense, refinancing may reduce your monthly payment, shorten your loan term, or both. The right time to refinance depends on your rate, your equity, how long you plan to stay, and what you need the money to do. Subject to credit approval and underwriting.

Construction to 30-year fixed Rate reduction ARM to fixed Cash-out equity Debt consolidation Divorce refinance FHA streamline VA IRRRL
Free Refinance Review
Takes 60 seconds. We'll show you options side by side — no pressure, no obligation.

Subject to credit approval. Not a commitment to lend. Rates and programs subject to change.
Union Home Mortgage NMLS #2229229

No cost to review Real numbers No pressure
Construction Loan to 30-Year Fixed

You built the home.
Now let's get you the right mortgage.

When construction wraps up, the construction loan has to go somewhere. The question is where.

Many local credit unions and lenders do a great job financing the build itself. But when the home is complete and it's time for permanent financing, some of them convert the construction loan into a short-term balloon mortgage or an adjustable-rate mortgage rather than a standard 30-year fixed. It's common. And for a lot of homeowners, it comes as a surprise.

A balloon mortgage isn't a permanent solution. It has a maturity date — and when that date arrives, the full remaining balance is due. An adjustable-rate mortgage can look attractive at first but introduces payment uncertainty over time. Neither one is what most families are looking for when they just built their home.

A 30-year fixed mortgage gives you a stable, predictable payment for the life of the loan. No adjustment dates. No balloon deadline. Just your payment, locked in.

You don't have to have done your construction loan with us to get your permanent mortgage here. If your construction lender rolled your finished home into a balloon or an ARM, we can refinance you into a conventional 30-year fixed. Kirby and Angie have completed this exact refinance for five Northern Michigan homeowners in the past 12 months alone.

5 Completed in 12 months
30 Year fixed result
0 Balloon deadlines remaining
What to Know
How construction lending works at most lenders vs. Union Home Mortgage
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Construction phase. Most lenders, including many credit unions, offer construction loans that fund the build in draws as work is completed. This part works fine nearly everywhere.
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When the build is done. This is where the paths diverge. Some lenders convert to a balloon mortgage or ARM. At Union Home Mortgage, our construction loans convert directly to a permanent 30-year fixed with a single one-time close.
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Check your loan documents. If your loan has a maturity date within the next several years, or a rate that adjusts, you are likely in a balloon or ARM. That's the loan that needs to be replaced.
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We don't need to have been your construction lender. Wherever the construction loan came from, we can evaluate your situation and refinance you into a permanent mortgage that fits your life.
Don't wait for the deadline to act. Starting the refinance process 12 months or more before a balloon matures gives you the full range of options. Waiting until the last few months limits your choices.
When It Makes Sense

Refinancing isn't always the answer.
Here's how to know if it is.

The core question is simple: will the savings over time outweigh the cost to refinance? That calculation — called your break-even point — is the first thing we run for every client.

Refinancing tends to make sense when your current rate is meaningfully higher than what you could qualify for today, when your payment is straining your budget, when an adjustable rate is about to reset, when a balloon deadline is approaching, or when your home has appreciated enough to let you tap equity without overextending.

It tends not to make sense when you plan to move soon and won't recoup closing costs, when the rate improvement is too small to justify the fees, or when rolling costs into the loan would leave you underwater on equity.

We show you math both ways. If a refinance doesn't make financial sense for you right now, we'll tell you — and we'll tell you what would need to change before it does.

Break-Even Framework
How We Evaluate Every Refinance
1
Current vs. new rate. We compare your existing rate to what you qualify for today across multiple programs.
2
Monthly savings. We calculate your new payment and the difference from your current one.
3
Total closing costs. We itemize every cost — no surprises at closing.
4
Break-even month. We divide total costs by monthly savings to tell you exactly when you come out ahead.
5
Your timeline. If you plan to stay past break-even, refinancing is worth serious consideration.
Refinance Scenarios

Which situation fits yours?

Most homeowners come to us with one of these scenarios. Click any to learn more about how that refinance works and whether it applies to you.

Northern MI Specialty
Construction Loan to 30-Year Fixed
Built your home through a local lender or credit union? If your construction loan converted to a balloon mortgage or ARM at completion, this is the refinance you need. A permanent 30-year fixed mortgage replaces the temporary loan with a stable payment that doesn't expire. You don't need to have built with us to refinance with us.
Good for: Homeowners whose construction lender rolled the completed loan into a balloon or ARM.
Review my construction loan →
Most Common Right Now
Still Paying Over 7%?
If you bought or refinanced when rates peaked, you may qualify for a meaningfully lower rate today. We run the break-even math first so you can decide with real numbers.
Good for: Homeowners who bought in 2022 to 2024 at elevated rates.
See if you qualify →
Rate Stability
ARM to Fixed-Rate Refinance
Adjustable-rate mortgages made sense when you got them. If your rate is adjusting soon, locking into a fixed payment eliminates that uncertainty permanently.
Good for: Homeowners with 5/1, 7/1, or 10/1 ARMs approaching reset.
Learn how it works →
Equity Access
Cash-Out Refinance
Your home has likely appreciated. A cash-out refinance lets you access that equity for home improvements, debt payoff, education, or investment — rolled into one mortgage payment.
Good for: Homeowners with significant equity and a clear use of funds.
See equity options →
Payment Relief
Debt Consolidation Refinance
Paying 20%+ on credit cards while sitting on home equity is expensive. Rolling high-interest debt into your mortgage can dramatically reduce your total monthly obligations.
Good for: Homeowners with high-interest revolving debt and available equity.
Run the numbers →
Life Change
Divorce Refinance
When a home is marital property, a refinance removes one spouse from the loan and title. Angie Anderson specializes in divorce lending and coordinates with attorneys to protect both parties.
Good for: Divorcing couples navigating home ownership transfer.
Learn about divorce lending →
The Process

From first call to clear to close.

Most Michigan refinances close in 20 to 30 business days when documents move on time. Here's what that looks like.

01
Free Review Call
Tell us your current loan type, rate, and goal. We'll pull a quick scenario right there — no paperwork yet.
02
Written Side-by-Side
We put your current loan next to your refinance options in plain English — payment, rate, costs, break-even. You decide.
03
Application and Docs
Once you're ready to move forward, we collect what underwriting needs. We tell you exactly what and why — no mystery.
04
Appraisal and Title
Most refinances require an appraisal. We coordinate it and keep you posted. FHA Streamline and VA IRRRL may not require one.
05
Clear to Close
Underwriting approves. We confirm final numbers. You sign. Most refinances reach clear to close in 20 to 30 business days from a complete application.
Loan Programs

The refinance programs available in Michigan.

Different loan types have different refinance rules. Here's what you need to know about each program before you start.

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Conventional Refinance
The most common refinance type and the standard path for converting a construction loan or balloon into a permanent mortgage. Requires 620+ credit score and typically at least 5% equity for rate-and-term, 20% remaining equity for cash-out. No mortgage insurance required at 80% loan-to-value or below. Available for primary homes, second homes, and investment properties.
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FHA Refinance and Streamline
If your current loan is FHA, the FHA Streamline Refinance can lower your rate with reduced documentation and often no new appraisal required. Standard FHA refinances allow lower credit scores — sometimes to 580 — and up to 85% loan-to-value on cash-out. Mortgage insurance remains with FHA loans.
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VA IRRRL — Veterans Refinance
If your existing loan is VA, the Interest Rate Reduction Refinance Loan (IRRRL) is the fastest and simplest refinance available. No appraisal required in most cases. No income verification. The new rate must be lower than your current VA rate. Available to eligible veterans, active duty, and surviving spouses.
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USDA Streamlined Assist
USDA loans — common in Northern Michigan rural areas — can be refinanced through the USDA Streamlined Assist program. Requires 12 months of on-time payments, no cash-out, and the new payment must be lower. No appraisal required. Property must remain in an eligible rural area.
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Jumbo Refinance
Loans above conforming limits — common in Petoskey, Charlevoix, Suttons Bay, and Northern Michigan lakefront markets — follow jumbo underwriting standards. Typically require 700+ credit, 20%+ equity, and strong cash reserves. Rates and terms vary by lender and loan size.
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Manufactured Home Refinance
Manufactured homes in Michigan can often be refinanced through FHA, VA, or conventional programs depending on the home's age, foundation type, and how it's titled. Many lenders won't touch them. Kirby and Angie specialize in manufactured home lending across Northern Michigan and can advise on your specific property.
What It Costs

Michigan refinance costs,
explained without the runaround.

There are two separate buckets of money due at closing on a refinance, and they are not the same thing. Closing costs are the hard costs of originating the loan. Prepaids are your own money being set aside for future expenses. Both show up on your Closing Disclosure, but conflating them inflates the number people fear.

Closing costs on a typical Michigan refinance cover the appraisal, title search, title insurance, recording fees, and similar third-party charges. On a $200,000 loan you are looking at roughly $4,000 in hard closing costs. Larger loan balances will carry higher costs on some line items, but many fees are flat regardless of loan size.

Prepaids are not a cost of the loan — they are funds collected at closing to cover prepaid mortgage interest, your homeowners insurance premium, and the initial escrow deposit for property taxes and insurance. You would owe this money regardless of whether you refinanced.

Points and pricing are a third factor worth understanding. A mortgage rate comes with a price, and that price is expressed in points. One point equals 1% of your loan amount. Paying points at closing buys your rate down — lowers it in exchange for more cash upfront. A lender credit does the opposite: the lender covers some of your closing costs, and you accept a slightly higher rate in return. Neither is automatically better. The right choice depends on how long you plan to keep the loan and what you can comfortably pay at closing. We model both options for every client.

No origination fee. Kirby and Angie do not charge a loan origination fee on standard refinance transactions. The only time an origination fee applies is on MSHDA programs, where it is required by the program itself.
Cost ItemNotes
AppraisalRequired for most refinances. VA IRRRL and FHA Streamline often waived.
Title searchFlat fee. Verifies ownership and lien history.
Title insuranceProtects lender against title defects. Required on all refinances.
Recording feesCharged by the county to record the new mortgage.
Points / pricingOptional. Pay points to lower your rate, or accept a lender credit to reduce cash at closing.
The items below are prepaids — not closing costs.
Prepaid interestInterest from closing date to end of month. Varies by close date.
Homeowners insurancePremium paid upfront at closing. Your money, not a loan cost.
Escrow setupInitial deposit for future tax and insurance payments. Your money held in reserve.

All figures are for informational purposes only. Actual costs vary by loan amount, program, property, and county. A full Loan Estimate will be provided after application.

Did You Know

Union Home Mortgage services
95% of the loans they originate.

Most mortgage lenders sell their loans after closing — which means the company you signed with is no longer the company you're making payments to. Your loan gets transferred to a servicer you've never spoken to, and the relationship you built during the process essentially ends at the closing table.

Union Home Mortgage works differently. UHM retains the servicing on approximately 95% of the loans they originate. That means when you close a loan with Kirby and Angie, there's a very good chance you'll still be making your payment to Union Home Mortgage a year from now, five years from now, and beyond.

The small number of loans where servicing is sold — roughly 5% — are typically specialty loan products. Like every lender, UHM reserves the right to sell servicing. But their commitment is to keep clients in-house as much as possible.

What that means practically: Kirby and Angie are your loan contacts for life. When rates drop and it's time to refinance, you call the same people. When you're ready to buy the next home, you call the same people. No starting over with a stranger.

95% Of UHM loans stay with UHM servicing
5% Servicing sold — typically specialty products only

"When you close with Kirby and Angie, you're not handing your loan off to a call center. We stay your contacts — through your first payment, your next refinance, and your next home."

Kirby Slocum and Angie Anderson, Union Home Mortgage

Not sure if refinancing makes sense right now?

That's the right question to ask. We run the analysis for free and show you the math either way. If it doesn't pencil out, we'll tell you.

Common Questions

Michigan refinance questions,
answered directly.

These are the questions we hear every week from Michigan homeowners thinking about refinancing. If yours isn't here, text or call.

Still have questions?

Text or call Kirby or Angie directly. You'll get a real answer, not a callback queue.

Ask Your Question →
What happens to a construction loan when the home is finished in Michigan?+
When a home is complete, the construction loan needs to convert to a permanent mortgage. Some lenders — including Union Home Mortgage with a one-time close construction loan — convert directly into a 30-year fixed at completion. Others, including many local credit unions and banks, convert the finished loan into a short-term balloon mortgage or adjustable-rate mortgage instead. If your construction lender put you in a balloon or ARM at completion, you need a permanent refinance before that loan matures or adjusts.
Do I have to have done my construction loan with Union Home Mortgage to refinance with you?+
No. Wherever your construction loan originated, Kirby and Angie can evaluate your current loan and refinance you into a permanent conventional 30-year fixed mortgage. The only requirement is that you qualify under standard underwriting guidelines for the new loan. Your relationship with your original construction lender has no bearing on your ability to refinance with UHM.
When does it make sense to refinance in Michigan?+
Refinancing makes sense when your current rate is meaningfully higher than what you could qualify for today, when you need to convert a construction loan or balloon into a permanent 30-year fixed, when you need to convert an adjustable-rate mortgage to a fixed rate, when you want to access equity, or when a life change like divorce requires removing someone from the loan. The key factor is whether your monthly savings outweigh your closing costs before your break-even point.
What does it cost to refinance in Michigan?+
There are two separate buckets. Closing costs are the hard costs of the loan — appraisal, title work, recording fees, and similar items. On a $200,000 loan, hard closing costs typically run around $4,000. Kirby and Angie do not charge a loan origination fee on standard refinances. Separately, prepaids are funds collected at closing for prepaid interest, homeowners insurance, and your escrow account setup. These are your own money being set aside — not a cost of the loan itself. Rate pricing — whether you pay points to lower your rate or accept a lender credit to offset costs — is a third factor we walk through with every client.
What are mortgage points and how do they work?+
Points are a form of prepaid interest. One point equals 1% of your loan amount. Paying points at closing buys your interest rate down — you pay more upfront in exchange for a lower rate over the life of the loan. A lender credit works in reverse: the lender covers some of your closing costs and you accept a slightly higher rate. Whether paying points makes sense depends on how long you keep the loan. We model both scenarios for every client so you can see the actual trade-off in dollars.
What is the difference between closing costs and prepaids?+
Closing costs are the fees associated with originating the loan — appraisal, title insurance, recording fees, and similar charges. Prepaids are funds collected at closing for future expenses: prepaid mortgage interest, your homeowners insurance premium, and the initial escrow deposit for property taxes and insurance. Both appear on your Closing Disclosure but they are fundamentally different. Prepaids are your own money being held in reserve — not a cost of borrowing.
Does Union Home Mortgage sell my loan after closing?+
Union Home Mortgage retains the servicing on approximately 95% of the loans they originate. That means most borrowers continue making payments to UHM after closing. Servicing may be sold on a small percentage of loans — typically specialty products — as is standard in the mortgage industry. UHM reserves the right to sell servicing like any lender, but their goal is to keep clients in-house. Kirby and Angie remain your loan contacts regardless.
How long does a Michigan refinance take to close?+
Most Michigan mortgage refinances close in 20 to 30 business days when documents are submitted promptly. Timing depends on appraisal scheduling, title work, and loan type. VA IRRRL and FHA Streamline refinances can sometimes move faster because they require less documentation and often no appraisal.
What credit score do I need to refinance in Michigan?+
Most conventional refinances require a 620 or higher credit score. FHA refinances can go lower, sometimes to 580 depending on the program. VA IRRRL refinances have no minimum score set by VA guidelines, though lenders may have their own requirements. Your score directly affects your rate — a higher score typically means better pricing.
Equal Housing Lender. All loans are subject to credit approval. Rates and programs are subject to change without notice. This is not a commitment to lend. Loan approval is conditioned upon satisfying all underwriting requirements. All payment examples and cost estimates are for illustrative purposes only. A Loan Estimate will be provided after a complete loan application is submitted. FHA, VA, and USDA program eligibility is subject to specific qualifications. Loan servicing retention figures reflect current UHM practice and are subject to change. Kirby Slocum NMLS #680817 | Angie Anderson NMLS #1999286 | Union Home Mortgage NMLS #2229229. Licensed in Michigan, Ohio, and Indiana.