Wednesday, December 19, 2012, AM | 10 Comments
Home is where the heart is, goes a famous saying. What if you can move about with your home to any place. These portable homes, more popularly known as Mobile homes are rare and are easier to set up than traditional homes.
Like for traditional home financing, there are lenders like banks and mortgage companies which specialize in providing lending for these types of homes.
Refinancing option is also available to mobile home buyers. Although the criteria of lenders can vary for providing mobile home refinancing, options are available for single-wide and double-wide mobile homes.
The building details like year, model and other things are inspected before refinancing the property. Even though mobile homes depreciate over time, but the rate is very slow as compared to their older counterparts.
Lending companies are also skeptical for providing refinancing for homes prior to a particular year.
Mobile home owners can either get payment in cash or else the lender can help in debt consolidation. Most lenders prefer a minimum one year model to consider for refinancing.
Since there is difference in the value of a traditional home and mobile homes, lenders ensure that they cover their risks. May it be vacation homes or a house for permanent dwelling; both are eligible although some restrictions may be applied by every institution.
It is suggested that one should apply to a number of lending institutions simultaneously. Even though your credit score may not be the biggest deterrent, but a person with a poor credit score may not get the loan.
Lenders can look at doing inspections before extending any loan. Most of the mobile home is refinanced through personal property loans which are not only more expensive but also have shorter maturities.
Reasons for refinancing
Regardless of what your existing loan is, refinancing should be utilized to be a wealth building strategy. There can be a host of reasons for availing the option of refinancing.
Refinancing ensures that you pay lower payments, improving cash flow. In simple terms, refinancing will pay off the current loan and you avail a new loan at a lower rate of interest. The main purpose is to ensure savings in the long run.
It is important that you find a noteworthy lender who can guide you through the process and explain you the various pros and cons attached to the loan.
The cash-out refinancing will allow you to pay off your current mobile home loan and invest the excess liquidity for something else. Since they are tax deductible, they also help in reducing your taxes to a good extent.
There are some charges involved while closing the loan, very much identical to the first loan that you would have taken.
You have the option to pay the costs along with the installments or initially itself. It is advised that due diligence should be done on variety of lenders as well as a thorough research on the prevailing market conditions in order to make sure that you get the right deal on the refinancing for your mobile home.
Adam Anderson is the author of this post. Apart from providing useful tips related to finance, he suggests opting for some of the no credit check loans services for a short term solution to your financial worries.
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