Can You Refinance a Manufactured Home?


The answer to that question is yes. Most lenders treat manufactured and mobile homes much the same as a conventionally built house and are willing to work with anyone who already owns or is thinking of buying a manufactured home. There are quite a few reasons why you might be interested in doing a refinance of your manufactured home; getting a lower interest rate and monthly payment, consolidating debt, paying for college or even purchasing a car. When you refinance your manufactured home you are basically using your new loan to pay off your current loan, with hopefully better terms that will save you money. The main thing to look for with this type of loan is a lower interest rate which in turn will lower your monthly payment, freeing up more money for other things you may want to do. If you can easily afford the monthly payments you are currently making then refinancing to a lower interest rate will allow you to shorten the length of your loan and pay it off sooner. Most financing for manufactured and mobile homes is available if it is located in a mobile home park or on private land. Because these types of dwellings are different then a standard stick-built home the laws and regulations concerning the financing of them will differ from state to state. Knowledgeable lenders will be able to help with the details when it comes to these types of loans. The closing costs for refinancing a mortgage are the same as when you purchased your original mortgage. You will have the option the pay them up front or roll them into the mortgage to keep out of pocket expenses at a minimum. This is a good option if you do not have the money to cover the closing costs but do be aware that it will add to the amount of the loan and you will be paying interest on any additional fees and costs that are rolled into the loan. Much like you can do when refinancing a traditional home mortgage you can also buy down your interest rate by purchasing points on a refinance of a manufactured home. Points are an additional fee that you pay up front to the lender. The amount of each point is dependent on the amount of the loan. In most cases one point is valued at one percent of the total loan amount. If your loan is $100,000 then each point or percentage point you move the interest rate down would cost $1,000. Before buying down your interest rate with points it is important to make sure that you plan on owning your home for a long enough period of time to recoup your investment in points. Refinancing a manufactured home is quite similar to that of a traditional home. There may be a few differences but for the most part the process is the same. Any good lender will point out any differences and should be willing to help guide you through the process.


. by Andrew Bicknell