Not every home owner lives in your typical brick and mortar house, many live in manufactured or commonly referred to mobile homes. These are often cheaper to purchase and don’t have the same value as you’re atypical home. Many people are falsely under the impression because their house is a mobile home they can’t refinance it.
Luckily this perception isn’t true and its very possible to get refinancing even for a mobile home. A large majority of finance institutions treat mobile homes as equal collateral as a regular house and thus are open to either consider financing or refinancing your manufactured home.
While it is not impossible to refinance a mobile home loan , its not as easy as you would find if you had a typical brick and mortar home. There are many reasons why this is the case but the main factor influencing this is the much smaller niche for resell purposes and the fact that mobile homes as they are still vehicles value will decrease over time
There are numerous reasons why a homeowner would consider or need refinancing these include.
. Wanting a lower interest rate to lower mortgage repayments
· Needing to decrease payment amounts
· Consolidating debt to just one provider.
· Needing extra liquid funds for renovation or home improvements.
· Freeing up capital for other large purchases.
Typically refinancing how you pay for your mobile home involves taking out a new loan with a different provider so you can pay off the original debt. The main requirement is to either get better terms such a lower interest rate or a longer period of finance so required regular payments are lower.
You will also want to take into account all small print and hidden costs such as contract fees and penalty rates for missed payments. Another very important issue is also penalty fees if you wish to pay your loan off before time.
If you have extra funds suddenly you may just wish to decrease your debt thus lowering your payments and length of time your load will be repaid under. This can lead to large savings in interest and will help increase equity in your home.
Normally it doesn’t make much difference if your manufactured home is built on a mobile home park or on privately owned land. There may be different terms necessary though for refinancing and you will want to check local government statues to see if they affect your decision to seek refinancing.
The first step in refinancing loan is to pay off or close the original debt here you have two options you can either pay them off instantly or have them included in your new agreement this is necessary if you are refinancing because you need extra capital to spend else where.
You can also purchase points from the lender, these will help to bring down your interest rate. Points are fees that you can pay up front to your lender, the value of each point depends upon the size of the loan. A point is normally a proportion of the amount borrowed. Normally 1 point is seen as 1% of the total loan, therefore if you borrow $100,000 one point will be considered as $1,000.
Getting a mobile home loan
or loans for manufactured homes
doesn't have to be as difficult as you think there are many companies and finance institutions that specialize in refinancing mobile homes visit us We'd love to be of assistance and can provide you with free information and advice.