Owning a mobile home is a pleasure for a number of reasons, not the least of which is that it represents a solid investment. Provided that a person plans to own their mobile home for a number of years, buying one is an investment not only in the physical comfort and safety of one’s family – but also in one’s financial future.
For the homeowner who chooses to hold onto their mobile home for a number of years, they will stick with making the same mortgage payments month in and month out. However, there may come a time when it makes sense to refinance a home loan.
If you are interested in a mobile home refinancing loan, here are 5 tips for how to get funded with the best interest rate:
1. Know what a refinance loan is:
A mobile or modular home loan is a mortgage, and a mortgage can be refinanced at any time. Refinancing a mortgage simply means paying down the existing mortgage loan by taking out a new loan, usually with better loan terms. The better terms can include a lower interest rate, the opportunity to cash out some or all of one’s equity, and/or a longer or shorter repayment period.
2. Understand the benefits of refinancing your mobile home loan:
Refinancing a mobile home loan can offer a number of benefits. The number one reason that a person might choose to go through a refinance is to reduce their monthly payments. This can be achieved in one of two ways: a. through qualifying for a loan with a lower interest rate than the person currently has, or, b. by increasing the loan repayment term.
Some people also choose to refinance just so they can take advantage of some of the equity they have in their home. In this scenario, the person takes out a larger loan than the amount of their previous mortgage (but in an amount not to exceed the total value of the property). Then, they use part of the proceeds from the loan to pay down the previous mortgage and they pocket the remaining cash. The cash can be used for anything from paying down credit card debt to refurbishing the home.
3. Educate yourself about the effects of your credit score on getting the best rate:
The interest rate for which you will be able to qualify will be based upon two factors: a. average mortgage rates at the current time, and b. your credit score.
Before applying for your mobile home refinance loan, it is a good idea to first have a look at your latest credit report and the FICO score found therein. It will be favorable for you if your credit score has improved since the last time you took out your loan.
4. Know what other factors influence your mobile home mortgage refinance rate:
It will also be favorable if average interest rates have dropped since then. Interest rates exhibit distinctive trends over time, going up or down based upon a number of market-related factors such as the yield on Treasury bills or notes. While you cannot control average interest rates, you can follow recent trends to find out where today’s rates are in relation to those trends.
5. Apply with at least 5 lenders who specialize in mobile home refinancing loans:
Now that you know how a mobile home refinance loan works, it is time to do your homework. Start by building a list of at least 5-10 lenders who make it their business to make this type of loan. Then, research the website of each one, as well as online discussion boards. Apply to at least 5 of the lenders.
Follow these 5 tips for qualifying for the best interest rate on mobile refinance loans.
Get a list of mobile home refinancing lenders at: Mobile Home Refinancing Lenders.