Michigan Mortgage Rates

Michigan has been hit hard by recent economic downturns and the relocation of many American auto manufacturers to other states or even Mexico and Canada. As such, this has created a unique real estate market in which supply greatly outstrips demand. The immense amount of property available in Michigan means that the lending market is equally obtuse, with many banks refusing to offer loans at all, while others offer loans at greatly reduced rates. As such, anyone wishing to purchase property in Michigan, or wishing to refinance their mortgage, would do well to shop around.

The first and most important way to shop around for favorable mortgage rates in Michigan is to consult local banks. Many of the banks which were founded in Michigan were founded with the purpose of revitalizing many of the run-down communities in the state, and several have state, federal or charity backers who ensure that the banks offer mortgages at the lowest reasonable rate. These banks are also often encouraged to take on customers with less than stellar credit as part of their program to bring development and housing to certain areas. Some properties may also get reduced interest rates or other favorable mortgages as part of a city revitalization project. In an attempt to bring businesses and families to Michigan, many cities now help to subsidize loans or otherwise bring down the interest rate in order to get businesses filled.

Another good way to hunt down favorable mortgage rates in Michigan is through the use of Lending Tree, available at www.lendingtree.com. The Lending Tree service enables banks from all over the country to examine a person’s credit worthiness as well as the property they intend to buy and how much it will cost. Interested banks then extend mortgage offers to the potential homebuyer, allowing them to pick and choose the best rate. The banks participating in the Lending Tree program include local banks, credit unions and even large Wall Street firms eager to lend money out to qualified persons. Lending Tree allows for potential borrowers to pick and choose from among available offers. The service also permits for the loans to be compared against one another, and against outstanding mortgages, to verify whether or not they are an improvement. The information gathered from Lending Tree is useful even to those not interested in having an out-of-state mortgage, since it can be used as a bargaining chip when negotiating with local lenders.

Persons of limited means who want to get a good mortgage rate in Michigan should also contact federally-sponsored housing programs which help to pair persons with houses they can afford. These networks can tap into the financial reserves of the federally assisted Fanny Mae and Freddy Mac lending corporations, who can offer superior rates of interest as part of redevelopment projects. There are both state and federal programs intended to help bring families and businesses to Michigan via low interest mortgage loans, and even persons of moderate or wealthy means should consider asking city and state authorities about such subsidy programs. In many cases, states are willing to reduce interest rates almost to zero for key development projects and promising small businesses, since the need for jobs is so significant.