Why Manufactured Home Loan Refinancing is Different

With a manufactured household you can literally put wheels on the structure and drive away with it, and this increases the risk of the loan compared to a household on a foundation. This is exactly why many traditional mortgage lenders and brokers don’t want to work on manufactured household loans. Another deliver with manufactured home loans is that they are considered personal property, not real estate. Therefore, financing a mobile household loan apart from the land beneath it is similar to purchasing a car or RV.

Mobile homes are manufactured off site, so they are not the same as a standard stick-built home. The laws concerning the financing for manufactured home loans vary from state to state, so it is very important to make sure the lender or mortgage broker is compliant with your state laws, and is licensed to lend the funds to finance or refinance a manufactured home loan, known as a chattel mortgage. Knowledgeable lenders that have experience in Manufactured Home Loans will be able to answer questions in regards to the rules and regulations in a specific state. The costs associated with refinancing your household mortgage should be similar to the fees that are paid when financing a mobile home purchase.

Most lenders who specialize in Mobile household loans treat them similar to conventionally built homes and will consider refinancing a loan for mobile homeowners who already have built equity. Why would someone think about refinancing their home? There are some really favorable reasons to refinance a mobile home; lowering the present home loan interest rate and monthly home loan payment, paying for children’s education tuition, paying down high interest credit cards and auto loans, or making improvements to keep the value of the home.

Refinancing a manufactured household is essentially getting a new loan with better terms to pay off a current loan, and it usually has at least one of many benefits. If you are currently in a situation where you can afford your monthly payments, then refinancing your manufactured household with a lower interest rate could allow you to pay off your loan sooner, shorten the length of your loan, or easily allow additional principal payments towards the principal balance of your loan from time to time. Financing for mobile homes is available for manufactured homes in space rent parks, parks where you own your own land, co-op parks, and mobile homes located on privately owned land.

Some lenders like California Manufactured Home Finance, offer a low, flat rate fee, if you are looking to refinance with the lowest fees possible. Most borrowers have the choice to go ahead and pay the fee(s) up front, however you can also include the fees into the new loan amount and keep out of pocket expenses as low as possible. Just like a traditional household loan, borrowers can also “buy down” their interest rate. To do this, borrowers must pay “points”. Points are additional fees that are paid at the time of closing to the lender that is financing your new loan. Usually a point is considered one percent of the new loan amount.

Why would someone consider refinancing their manufactured home? Lowering the present mortgage interest rate and monthly home loan payment, paying off high interest credit cards, are just a few.
JD Evans is an industry expert in mobile manufactured home mortgage. He currently manages mobile home mortgage refinance activities in California.

Related Articles:

The Wall Street Journal. Complete Personal Finance Guidebook (The Wall Street Journal Guidebooks)From America’s most authoritative source: the quintessential primer on understanding and managing your money

Money courses through just about... Read More >

Get a Financial Life: Personal Finance In Your Twenties and Thirties
“A highly readable and substantial guide to the grown-up realms of money and business.” —Deborah Stead, The New York Times,

... Read More >

Personal Finance For DummiesNow updated-the proven guide to taking control of your finances

The bestselling Personal Finance For Dummies has helped countless readers bu... Read More >

Wiley Pathways Personal FinanceWhether looking to create and adhere to a budget or trying to best utilize consumer credit and loans, Personal Finance will help readers make smart fi... Read More >

Personal FinanceThis market-leading text offers a student-friendly, practical introduction to managing personal finances. The structured pedagogy helps students learn... Read More >

HTML Version:

Text Version:

Article Url: