Refinance Mobile Home Mortgage
March 26th, 2011 | Author: weissheiss
Many people believe that you cannot refinance a mobile home mortgage, but in reality, you can refinance a mobile home the same as you can a conventional home. Granted, it usually is easier to refinance a conventional home. But you shouldn’t let that stand in your way.
A refinanced loan is simply a new loan that pays off the existing mortgage. And you can refinance virtually any loan. All it takes is a little work on your part.
The most common reason to refinance any loan is to take advantage of lower interest rates. Depending on how you structure your new loan, you may end up with lower payments, or you may reduce the length of time that you need to make payments. It is possible to even walk away with additional money in your pocket. Or you may end up with a combination of all three.
The most common occurrence is lower payments. This is especially true if you increase the length of time required to repay your loan. A typical single wide mobile home is financed for 15 years. If you have paid on the home for 7 years, and you refinance for 15 years your monthly payment will be lower because you have agreed to spread your 8 years of payments over a 15 year period.
Is this the best course of action? Only you can answer that question, sometimes it is necessary to increase the time of your loan in order to reduce your monthly payment so you can accomplish other things.
If you keep the length of your new loan the same as your old loan, your monthly payments will be reduced because of the lower interest rates.
However, if you decide to keep your monthly payments the same amount, you can reduce the time to pay off your loan when you refinance. This way, you can own your home free and clear in a shorter period of time.
If you decide to cash in your equity, you can get money in your pocket for other expenses or for remodeling your home. Your monthly payment may stay the same, increase or decrease depending on the length of your new loan and the mortgage interest rate.
To summarize, you may be able to reduce your monthly payment, reduce your length of loan repayment, and get additional money in your pocket if you structure your loan correctly. Check with your existing lender, they may be willing to refinance your mobile home mortgage for you.
Posted in Home Mortgage | 
Tags: Existing Mortgage, Interest Rates, Length Of Time, Loan Rate, Many People, Money In Your Pocket, Refinance Loan, Remodeling