Many people do not realize that a mobile or manufactured home refinance is a choice they have. If you own and are paying on a mobile or manufactured home, then you should look in to refinancing to see your options. Here are some things I think you should know about a manufactured or mobile home loan refinance.
Why would you even consider refinancing in the first place? Mainly to look for a lower interest rate, and rates are near an all time low so now is a great time. A mortgage refinance can also be used though for better terms of the mortgage, spending money, debt consolidation to get you out from under high interest payments, or money to use for home improvements.
Mobile or manufactured refinancing works by paying off your current mortgage with a new mortgage, hopefully with better rates, terms or both. This way, you own the same property, in the same time, just pay less interest or have less payments. This can easily save you hundreds per month to use however you desire. A refinance can also be used to extend the mortgage and have you walk away with thousands of dollars in equity, though this is less likely with a mobile or manufactured home.
It does not matter if your manufactured or mobile home is on private, or rented property, you are still eligible to refinance the mortgage. Although, state laws differ from state to state and you should check or check with your mortgage realtor.
Just like any other type of mortgage refinancing, their will be a closing cost of some kind involved. A lot of lenders will let you add these closing costs to the total of the home loan, which generally is not recommended from an financial standpoint. You will be paying those closing fees with interest for the lifetime length of the loan. This will add up to a lot of money in the long run. It is best to pay as much or all of the closing costs upfront, although you may not have this choice if you are in financial crisis.
Refinancing can generally be a good financial decision. You can look into it by checking lenders advertisements on my page here. Be sure to shop a good rate around to other lenders to see if they can match or better it.
-M Petrone


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