Home Loan Refinancing | Why Manufactured Home Loan Refinancing Is Unique
July 30, 2010 – 1:27 am
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 home on a foundation. This is exactly why many traditional mortgage lenders and brokers don’t yearn to work on mobile household loans. Another deliver with mobile home 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.
Mobile homes are mobile off site, so they are not the same as a standard stick-built home. The rules governing the financing for manufactured home loans vary from state to state, so it is very important to dig out 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 home 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 rules and regulations in a specific state. The costs associated with refinancing your home home loan should be similar to the fees that are paid when financing a manufactured household purchase.
Most lenders who specialize in Mobile household loans treat them similar to conventionally built homes and will think about 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 manufactured home; lowering the current 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 maintain the worth of the home.
Refinancing a manufactured home is essentially acquiring a new loan with better terms to pay off a present loan, and it usually has at least one of many benefits. If you are currently in a case 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 allow additional principal payments towards the principal balance of your loan from time to time. Financing for manufactured homes is available for mobile homes in space rent parks, parks where you own your own lot, co-op parks, and manufactured homes located on privately owned land.
Some lenders like California Manufactured Home Finance, have a low, flat rate fee, if you are looking to refinance with the lowest fees possible. Most borrowers have the option to go ahead and satisfy 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 home loan, borrowers can also “buy down” their interest rate. To do this, home owners 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 take into account refinancing their manufactured home? Lowering the current home loan interest rate and monthly home loan payment, paying off high interest credit cards, are just a few.
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By: JD Evans
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Tags: loan, loans, manufactured home, mobile home
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