I have a old house where the electrical is run through the ceiling joists of my basement on insulators. But there is some romex run through the house as well but it has turned a yellowish brown color and looks to be cracking when I move it. Should I replace all the wire in the house or would either of these pass in a inspection in Michigan?

If it was my house, I would rewire. It will be safer and have a better resale value.

Pass what inspection??

If it is as you describe, it will only help if you re-wire.

Thing is, "re-wiring" is not a simple or cheap job.

Thing is, "re-wiring" is not a simple or cheap job.
I agree! Heck, I will be rewiring a 2500sq ft house this week. The good thing. They will be removing 70% of the walls :D