Mobile Home Refinancing Tips – Should You Refinance Your Mobile Home Loan?

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Choosing whether or not to refinance a mortgage is a difficult decision, no matter if you are in a single-family home, a condominium or a mobile home. The reasons for refinancing your mortgage and the things you must consider will be the same. So what some of the reasons people refinance their mobile home mortgage?* Some refinance to lower their interest rate* Some refinance to lower their monthly payment* Some refinance to shorten the term of their mortgage* Some refinance to consolidate debt* Some refinance to remodel or expand their residence* Some refinance for other reasons altogetherAs you can tell, there are numerous reasons to refinance your mortgage. Now we need to discuss some of the key things to consider when making your decision on whether or not to proceed:
Interest RateOne simple way to look and see if refinancing is right for you is to find out your current interest rate. If you can refinance and lower your rate, you may be able to save on your monthly payment and in overall interest expense over the time of the note. Be careful though, a lower rate is not always a guaranteed good deal. You also need to consider more. Is the interest rate adjustable or fixed? If you currently have a fixed rate mortgage and a lender is trying to convince you to consider an adjustable rate mortgage just because it is lower, run away fast! Adjustable rate mortgages are good for some people and not for others. Comparing a fixed rate mortgage to an adjustable rate is like comparing apples to oranges. You need to compare apples to apples, or fixed-rate to fixed-rate.Fees and PointsBe sure to compare different lenders to see what type of fees and points they will charge you. Some will offer lower rates, but charge extra fees. This might be fine if you intend to hold the mortgage for a long time, but may be costly if you plan to sell or move in a few years.Owner’s EquityHow much is your mobile home worth? How much is your current mortgage balance? Take the appraised value and subtract the current mortgage rate to find your equity. Do you need cash to fix things around the home, remodel altogether or for some other reason? You might consider doing a cash out refinance and using the equity in your home for one of these purposes.