1. For a fixed rate loan, to provide
access home equity for home improvements
3. To lower interest rate and/or monthly
4. To consolidate debt/pay off credit cards.
The first reason for refinancing your mobile
home mortgage is to obtain a fixed interest rate and eliminate the costly
adjustable rate feature of your existing loan. Sure, an adjustable rate mortgage
is a good way to purchase a mobile home with low initial monthly payments,
however, the sporadic rate fluctuations and the potential for large interest
rate jumps can be not only alarming, but very costly. This is why many
homeowners consider refinancing into a fixed interest rate loan.
The second reason for refinancing is pulling
the equity out of the mobile home; this is a popular reason for refinancing.
Perhaps you are in need of some cash to pay for your children or grandchildren's
college tuition, or you are looking to make some home improvements to maintain the value
of your home. Planning for retirement is another common reason to tap into the
equity you have built up in your manufactured home.
The third reason behind refinancing a
mobile home is to lower your current interest rate and monthly mortgage payment.
Now this may seem simple; who doesn't want lower payments? But even if you are
currently in a situation where you can afford your
monthly payments, then refinancing your mobile home loan with a lower interest
rate may allow you to shorten the length of your loan, pay it off sooner, and
easily make additional principal payments towards the principal balance of your
loan from time to time, if you so desire, to pay the loan off even sooner.
Now let's review the fourth reason that mobile
home owners have for refinancing; consolidating debt, paying off high interest
rate credit cards and auto loans. Taking cash out of your home to pay off debts
that have high interest rates and non-deductible interest costs is a very
popular reason behind refinancing mobile home and manufactured home loans. The
interest on your mobile home loan is, typically, tax-deductible. If you have a
considerable amount of credit card and auto loan debt, it can make sense to use
some of the equity in your home to pay off these costly amounts. After paying
these debts off with a manufactured home loan, the interest you pay on your new
mobile home loan is now tax-deductible. Now, keep in mind, it is always
advisable to seek advice from your tax advisor about your particular tax
Costs are another important consideration when
refinancing a mobile home. Some mobile home lenders now offer low flat rate
fees, if you are looking to refinance with the lowest expenses possible. Most
borrowers have the option to pay any fees associated with refinancing up front
while closing their loan, however one may also be able to include these fees
into the new loan amount and keep out of pocket expenses at a bare minimum. Just
like a traditional home loan, borrowers can also buy down the interest rate. To
do this, borrowers may be charged with points. Points are additional fees that
are paid at the time of closing to the lender that is financing your new
manufactured home loan. Usually a point is considered one percent of the new
You will want to carefully consider all
of your options first with a qualified professional mobile home and manufactured
home lender. Knowledgeable lenders that are licensed to do mobile and
manufactured home loans in your state should be able to help you decide whether
the cost of the loan is worth the savings. Also, they should be able to tell you
the facts before you have to make a payment of any sort.
About the Author: Josh Ladick is with the San Diego Mortgage
Group , a mortgage
funding and brokerage firm, with a specialty in mobile home loans.
They are located in San Diego, and have financed hundreds of loans across
California, however they can finance loans for chattel mortgages across the USA.
For more information: || San Diego: Mobile Home Loans or Refinance ||
California: Manufactured Home Loan
|| United States: Manufactured Home
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4 Top Reasons To Refinance Your Manufactured Home