Mobile home ownership is a wonderful thing. Also called manufactured homes, mobile homes offer their owners a degree of freedom and a type of lifestyle that traditional homes cannot.
It’s easy to take pride in one’s home. Mobile home living offers a sense of community with like-minded people who enjoy living life in and around their homes, in their parks, and in their larger communities.
Home ownership is not only a source of pride, it is also an investment. However, keeping up with payments is not always easy. Life can bring its ups and downs in terms of employment opportunities, while unexpected or irregular expenses like medical bills, weddings, and car repairs can crop up at any time and affect your cash flow.
These situations can make it difficult to keep up with your regular monthly home payments.
How refinancing can help you save money
If you’re having trouble making your monthly mortgage payments or just want to see if you can qualify for a lower rate, you should consider refinancing your home.
Refinancing offers a number of important benefits, such as reduced payments, removal of equity from your home, and lowering the total cost of your home.
Here are 5 frequently asked questions about refinancing:
1. How is mobile home refinancing different?
A mobile home refinance works the same way as a traditional home refinance: You’re basically replacing your existing mortgage with a newer and better one.
2. What advantages can I obtain through a mobile home refinancing loan?
The advantages of refinancing include some or all of the following:
A. lower monthly payments by either extending the payment period, getting a lower interest rate, or both
b. lower total cost of borrowing, either by getting a lower interest rate or by shortening repayment terms
against the ability to withdraw part of the equity you have in the house
3. What is the FHA Title I program?
FHA is the Federal Housing Authority, an organization that is designed to make it easy for everyone to own a home. Under the Title I program, FHA-approved lenders make funds available to manufactured/mobile home owners in the form of a loan. FHA itself does not make the loans, but it insures the loans from approved lenders.
This reduces risk for lenders, allowing them to be more flexible with qualification requirements.
4. What are the maximum loan terms for a Title I refinance?
The maximum terms are 20 years for a single section and lot mobile home, 15 years for a lot (only) loan, and 25 years for a multi section and lot mobile home.
5. How can I secure the lowest possible rate when refinancing my mobile home?
The surest way to keep your rates as low as possible is to apply for a home refinance loan through multiple lenders. Create a list of at least 5 lenders through online research and apply to all of them. Then take the best refinance offer you can get: the one with the lowest interest rate and lowest cost. Doing so could save you tens of thousands over the course of the loan – it’s worth an hour or two of research.
The answers to these frequently asked questions about refinancing your mobile home can help you save money on your refinance loan.