Well, fortunately it is possible to refinance many mobile homes. The majority of lenders consider these manufactured and mobile homes to be exactly the same as a regular house, therefore they are willing to consider financing or refinancing your manufactured home.
There are a couple of reasons why you might want to refinance your manufactured home, including:
* Getting a lower interest rate
* Reducing your monthly payments
* Consolidating your debt
* Paying for something else (e.g. College, car, or even maintenance).
Refinance simply means that you take out a new loan which will pay off your current loan, this is essentially how it works when refinancing your mobile home. The idea is to get better terms, which will hopefully save you lots of money in the long run since you should be paying less each month for your loan.
The key area of interest is the interest rate, if you can find a loan with a lower interest rate then this will lower what you have to pay each month. This will allow you to have more money left over each month for things that you might want to do.
It is also possible to refinance your loan in the other direction too, if you have come into more money then it is possible to restructure your loan so that the length of your loan is shortened. This is helpful because it will mean that you can pay off your loan much sooner.
You can normally get financing for your manufactured home whether it is built on a mobile home park, or on private land. However because these are not considered as normal houses the rules governing the financing of mobile homes will change depending on which state you are in. You should be able to find a knowledgeable lender who will be able to assist you with this.
You will be required to pay the closing costs, these are the same as when you took out your existing mortgage. You can either pay these costs up front, or also have them included in the finances. This will help to reduce the amount of money you will have to spend up front.
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.
There's not much difference when refinancing a manufactured home than when refinancing a conventional bricks and mortar home. There are of course a couple of differences, but as far as most people are concerned it's identical.
Make sure you find a good lender who will be able to point out any pitfalls that you may fall into, whilst also being able to give you good advice. Any good lender will be more than willing to help you through the process of refinancing your home.
