Refinance a Manufactured Home — What’s It All About?

Refinancing homes can also apply to manufactured or mobile homes. If you own a manufactured home, some of the reasons you may want to refinance are; you want to consolidate debt, you are not happy with your mortgage rate or loan term, you need the money to make a larger purchase such as a car or college tuition.

With a manufactured home refinance, you are essentially paying off your current loan and taking out a new loan with better terms. Usually these better terms are a lower interest rate, which will enable you to have lower monthly payments. Another reason for new terms is to pay the same monthly payment, or perhaps a few dollars more a month at a lower interest rate, but a shorter loan length.

Refinancing is available for mobile homes located in parks or on private land. The laws and regulations are different according to which state you live in. So it is a good idea to talk with a lender in your state to find out the details of refinancing your mobile home.

When refinancing you will have closing costs just as you did when your first purchased your home. You can choose to pay the closing costs out of your pocket or you can roll the closing costs into the new mortgage so you will not have out of pocket expenses. The thing to remember with rolling your closing costs into your loan is that you will be paying interest on the closing costs. So you need to decide if you want to do that. You may have to roll the costs in if you do not have enough cash to cover the closing costs.

As with refinancing of traditional homes, you will be able to purchase points to bring down your interest rate. Points are an upfront fee paid to the lender. One point is worth one percent of the loan. So if you have a loan for $50,000 and you wanted to buy points, one point would be worth $500. If you are considering purchasing points , you need to make sure you will own the property long enough to retrieve the money you invested in points.