How to Refinance Mobile Homes
Much like stationary homes, mobile homes can be refinanced. Mobile homes build home equity over time and this allows you to refinance them at a more favorable rate. Refinancing your mobile home can give you more to live on month to month and save you money in the long run.
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Things You'll Need
- All your personal financial records
- All the information on your existing mortgage or personal property loan
Instructions
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Determine whether refinancing is right for you. Some considerationsinclude how much you will be saving monthly when compared to the closing costs and fees of refinancing. The Motley Fool recommends you ask yourself questions like how long you will be staying in the home, which direction you think the interest rate will be headed.
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Determine whether your loan is a personal property loan or a mortgage. Generally, if your mobile home is in a park you will be working with personal property loans and if its on your own land it will often be a real estate mortgage loan. Personal property loans are less regulated. This may give the lender more flexibility.
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Shop around for a lender who will give you a favorable rate. Lenders who might be able to do refinances include, banks, credit unions, mortgage companies and brokers.
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Make the deal. After you have put as much research and consideration into your refinance as you did towards taking out your original loan, its time to make the move.
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Tips & Warnings
Placing your mobile home onto a permanent foundation might allow you to take out a mortgage on both the land and the home.
Check out government programs. Government organizations like the FHA might have programs that can help you.
Having a low credit score will assist you in obtaining a low interest rate on your loan. (reference 2)
Mobile homes depreciate faster than ordinary homes, so refinancing an older mobile home might be more difficult.
If you decide to take equity out of your home you should be careful to spend it wisely otherwise your decision to do so might leave you in a worse position than when you started.
References
- Photo Credit mobiles homes 6 image by Marc Rigaud from Fotolia.com
