Mobile Home Refinancing Loans

Just as you can take out a home equity loan or refinance a traditional stick-built home, you can also refinance or apply for home equity loans for manufactured homes. Although in some cases, interest rates can be a bit higher for mobile homes, you may find you are able to find a lower interest rate than the one you got when you originally financed your mobile home. By refinancing your mobile home, or opting for a shorter term, you could save thousands of dollars in interest.

Most lenders will let you borrow about 80% of your mobile home's current appraised value, or more, if you're simply refinancing your existing loan. But, if you're looking to cash out, it will most likely be less than 80%.

A cash out refinance is, in many cases, the best option for people who want to utilize the equity they've built up in their mobile homes. If you complete a cash out refinance, part of it goes towards the balance of your existing mortgage loan, and the rest can be used for well, anything else! Normally people use this money for home improvements.

Why Refinance?

If you think that you may be able to get a shorter term, or a lower fixed rate of interet, you could save a lot of money, compared to your current mortgage. If you're stuck in an ARM mortgage, you may want to refinance and get a fixed rate mortgage. If you want to consolidate a first and second mortgage, refinancing might be an option. You should take into consideration any closing costs involved though, before refinancing.

Home Equity Loans

A home equity loan is a second mortgage that lets you turn the equity in your mobile home into cash, allowing you to spend it on things such as home improvements, debt consolidation, or other expenses.

A home equity loan does not replace your primary mortgage. When you get a home equity loan for your manufactured home you are taking out a second mortgage (in the form of a loan or a line of credit utilizing the equity in your home as collateral). Applying and qualifying for a home equity loan or line of credit can be easier for most people, and the application process shorter. But most home equity loans are much like credit cards, with an adjustable-rate, revolving 'line of credit'. Closing costs tend to be lower than those associated with cash out refinance loans as well.

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