Refinancing your home is becoming more popular nowadays, as people chase lower rates and better loan conditions. So why not think about refinancing your mobile home too? There are lots of good reasons to consider it.Firstly, what does refinancing your mobile home loan involve? Basically, you pay out your original mobile home loan with a new one. So effectively you replace one loan with another one that better suits your needs and circumstances. You will need to go through the same application process again, with all the same financials and credit history information required. But if you qualified once, chances are you’ll qualify again.Now, on to some of the benefits of refinancing your mobile home loan.Lower Interest RatesIf you’ve had your mobile home loan more than a couple of years, and you’re on a fixed rate loan, chances are you’re paying a much higher interest rate than you need to. A mobile home refinance loan could see you saving a substantial amount in interest over the course of your loan.Payment CertaintyMany mobile home loans are adjustable-rate mortgages, which means that as interest rates change, so does the mortgage rate. This is great when interest rates are declining, but with interest rate already very low, chances are the only direction likely is up. You don’t want to get caught with substantial rises in your monthly repayment, so refinance to a fixed rate mobile home loan, and you can be certain what your payments are going to be into the future.Better Customer ServiceLet’s face it, dealing with a lending company isn’t always a top-notch experience – customer service can be lacking in a big way. It could also be that your current lender refuses to make changes to your loan that would better suit you. So look around for another lender who might be more sympathetic to your requests, and who gives better customer service overall. With a mobile home refinance, for example, you may be able to increase the length of your current loan term, and so lower your repayments.Capped Interest RatesAgain, if you have a standard adjustable-rate mobile home loan, you’re at risk of rising interest rates making your payments unaffordable. By refinancing your mobile home loan, you can take out a new loan where the interest rates are capped at a certain level. That way, the interest rates may rise a little, but once they reach your capped level, your rate is then fixed. In some ways this gives you the best of both worlds – you can take advantage of adjustable rates when interest rates are low, but you have a fixed rate come into effect if interest rates start rising.Extra CashLike most homes, a mobile home will inevitably need some repairs or refurbishment. With a mobile home refinance, you can pull out any extra equity you’ve built up in your mobile home as cash, which you can then spend on doing the required work.Consolidate DebtIf you’ve had your mobile home loan for a while, chances are you now have considerable equity in your mobile home. If you’ve built up credit card or other high interest cost debt, it may be worth considering consolidating those debts into your mobile home loan. That way, you can pay off your outstanding debt at high interest rates and pay it all off in one easy to remember monthly payment at a much lower interest rate. Just don’t make the mistake of going out and spending up big on your credit cards again once you’ve paid them off – cut them up if you have to.
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.
Do you own your mobile home? Are you stuck under a pile of debts with no way out? You have many options including, bankruptcy, debt consolidation, credit counseling, and mobile home refinance debt consolidation. Let’s take a look at each of these.First, you could file bankruptcy, but this is not a good option for most. You would most likely lose your mobile home and any vehicles you own as well. You would also ruin your credit for the next 10 years and have very little to show for it. This is an option for only the incredibly desperate.Second, you could get a debt consolidation loan, but if you have bad credit you can scratch this one. If you have decent to good credit you can consolidate all your debts into one with a loan.Third, there is always not for profit credit counseling. This is a good option and is a great alternative to bankruptcy because if will provide you a way out of your situation and you will get counseling to make sure you do not end up back in the same situation again. This is a great option and is highly recommended.Fourth, you can use a mobile home refinance debt consolidation loan to get out of debt. There are still lenders that will refinance your mobile home and help you get out of some of your debts. This can really help because your collateral will win you a better loan and possibly a larger loan as well.