Refinancing Manufactured Homes

Refinancing manufactured home loans can be the ideal way to lower monthly payments by acquiring a lower interest rate, shorter terms, getting rid of prepayment penalties, and using the savings to pay off high interest credit cards. The refinance process is the best option for the consumer who needs to find a way to manage debt problems. Some online lenders advertise great interest rates regardless of credit history. Some refinancing manufactured homes include cash out options, equity loans with a credit line, interest only loans, debt consolidation loans and home improvement loans.

Fixed rate interest is for the consumer who wishes to remain in their home long-term. Refinancing manufactured home loans offer fixed rates, fixed rate balloons and adjustable rate mortgages. The interest on a balloon fixed rate tends to have the lowest interest but the loan term is short. If a consumer doesn't plan on living in their home long-term then a balloon fixed rate is a good option. An adjustable rate mortgage (ARM) allows for the interest and payment to be unchanged for up to 10 years. After the fixed time period the rate will change. Refinancing manufactured homes may also include the option of a buy down loan. The interest rate on a buy down loan will change based upon the terms as much as three times but after that it is fixed for the rest of the loan term.

Homeowners need to choose a lender who specializes in the refinance process. There are many considerations in finding the right lender. Borrowers need to check the extra fees that may be part of refinancing manufactured home loans and compare with other lenders. It's necessary to get a Good-Faith Estimate from the lender. The GFE should include all the costs involved in a refinancing manufacture home loan. Borrowers should have everything agreed upon in writing, especially the rate promised by the lender, before closing on the loan. It's best to find out the value of the home before pursuing a refinance loan. Homeowners must get informed by doing a search online for refinancing manufactured homes.

Some lenders online include on their site, how to qualify towards refinancing. Established credit is important with at least two years of credit history. A history of at least three months on a current loan is necessary on refinancing manufactured homes. The consumer's income must be verifiable. The home should have been built in 1977, or later, in order to engage in a refinancing manufactured home loan. There is a minimum in the amount to be financed by some lenders. If the consumer desires a cash out or consolidate debts, the house should be a 1990 model or newer. "O that they were wise, that they understood this, that they would consider their latter end". (Deuteronomy 32:29)

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