Mobile Home Refinancing

For mobile home owners the thought of refinancing does not normally cross their minds. While they may have some sort of financing in place, usually through the manufacturer or mobile home park in which they live, many do not realize that they can refinance their current loan much the same way as they would if they owned a conventionally built house. Many lenders treat mobile and manufactured homes the same as stick built homes.

There are any number of reasons to refinance your mobile home including consolidating debt, paying college tuition, or even purchasing a car.

As with any loan refinance you will be paying off your current loan with the new loan that will have better terms that should save you money each month. The most important thing to look for in any refinance opportunity is a lower interest rate. This will lower your monthly payment and allow you to do other things with the extra money.

Another advantage of refinancing you may want to take advantage of is shortening the length of the loan. If you can easily afford your current monthly payment then by getting a lower interest rate you can pay off your loan more quickly.

If your mobile home is located in a mobile home park or on your own private land chances are good you can get financing for it. The only difference may be laws and regulations that are specific to the state you live in because of the way in which mobile homes are built. Talking to your lender will help clear up any issues you need to be aware of when it comes to loans on these types of dwellings.

The costs associated with a mobile home refinance will be the same as any mortgage for a conventional home. There will be closing costs which can either be paid up front or rolled into the loan if paying them out of pocket is not an option. While rolling these costs into the overall loan is a good option to be aware that it will be subject to the interest you are paying on the loan.

Another way to save money over the life of the loan is to buy down the interest rate with points. Points are an up front fee that is paid to the lender with each point dependent on the overall loan amount. Most lenders base the amount their points are worth at one percent of the total loan amount. For each point bought the interest rate will drop one percentage point. Points are a good investment if you plan on owning your mobile home for a long period of time.

While there may be a few differences with mobile home refinancing for the most part the process is identical to refinancing a traditional home. By working with your lender you will be able to come out with a loan that works best for you.

by Andrew Bicknell