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Why Manufactured Home Loan Refinancing is Differentn
| With a manufactured household you can literally put wheels on the structure and take off with it, and this increases the risk of the loan compared to a home on a foundation. This is exactly why many traditional mortgage lenders and brokers don't yearn to work on manufactured home loans. Another deliver with mobile household loans is that they are considered personal property, not real estate. Therefore, financing a mobile home loan apart from the land beneath it is similar to purchasing a car or RV. nnMobile homes are manufactured off site, so they are not the same as a standard stick-built home. The rules concerning the financing for mobile household loans vary from state to state, so it is very important to make sure the lender or home loan broker is compliant with your state laws, and is licensed to lend the funds to finance or refinance a manufactured household loan, known as a chattel mortgage. Knowledgeable lenders that have experience in Manufactured Home Loans will be able to respond to questions in regards to the laws and regulations in a specific state. The costs associated with refinancing your household home loan should be similar to the fees that are paid when financing a manufactured home purchase.nnMost 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 good reasons to refinance a mobile home; lowering the present home loan interest rate and monthly mortgage payment, paying for children's college tuition, paying down high interest credit cards and auto loans, or making improvements to maintain the value of the home.nnRefinancing a manufactured home 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 mobile household with a lower interest rate could allow you to pay off your loan sooner, shorten the length of your loan, or easily make additional principal payments towards the principal balance of your loan from time to time. Financing for manufactured homes is available for manufactured homes in space rent parks, parks where you own your own lot, co-op parks, and mobile homes located on privately owned land.nnSome 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 satisfy the fee(s) up front, but you can also include the fees into the new loan figures and keep out of pocket expenses as low as possible. Just like a traditional home 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.nnWhy would someone take into account refinancing their manufactured home? Lowering the present home loan interest rate and monthly mortgage payment, paying off high interest credit cards, are just a few. |
About the Author
JD Evans is an industry expert in manufactured manufactured home mortgage. He currently manages manufactured home mortgage refinancing activities in California.
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