Refinance Mobile Home Loan

A refinance mobile home loan works much the same as a regular home mortgage refinance with a few minor tweaks. And the same reasons brick and mortar home owners refinance are also the reason why many mobile home owners refinance. Debt consolidation or pay off, medical bills, a new car or truck, a vacation or just wanting more discretionary income can be among the purposes for deciding to get a refinance mobile home loan. For many people facing hard economic times, this type of lending agreement can be a real help. But there are some things a person needs to know before signing on the bottom line.

To begin with, a term called LTV is often bandied about when wanting to a refinance mobile home loan. This acronym stands for loan to value and describes how much of a refinance mortgage can be made on someone's manufactured residence. For instance, if a lending company offers a refinance lending agreement on a mobile home worth forty thousand dollars, and the LTV limit the loan company lending practices allow is ninety five percent, a new mortgage for thirty eight thousand dollars will be approved. If a person only owes twenty four thousand dollar on the residence, then twelve or thirteen thousand dollars can be pocketed if a new mortgage for thirty eight thousand dollars is secured. However, if a person still owes thirty five thousand dollars on the mortgage, refinancing for thirty eight thousand and pocketing three thousand may not be a great deal. The reason is that the costs to secure the new loan, often called points may devour a great deal of the three thousand dollar difference.

Unlike getting a mortgage on a brick and mortar property, there are age issues when a person begins to think about a refinance mobile home loan. The reason is the quick depreciation a manufactured home often suffers. For instance, cash out mortgage in many states is only available on doublewide structures made after 1976 and singlewide homes made after 1991. A manufactured residence is typically eligible for a cash out mortgage if made after 1991. "Therefore being justified by faith we have peace with God through our Lord Jesus Christ." (Romans 5:1)

Besides cashing out some of the equity a person may have in their mobile home property, there may be another reason a person decides to consider a refinance mobile home loan. For instance, perhaps an owner is tired of see her monthly payment fluctuate because the lending agreement is a variable rate loan. The stability of a fixed interest rate and the receiving the same mortgage bill each month can be attractive to some owners. Or possibly an individual wants to lower her monthly payments by switching to a lower interest rate and refinancing seems like a good option. Or perhaps an owner wants to speed up the pay off schedule and own the property in five years instead of ten. Refinancing to get a higher monthly payment over a five year period can accomplish that goal. Of course, just paying more each month above the regular mortgage payment can accomplish the same thing without the added cost of a refinance lending agreement.

Anyone can apply for a refinance mobile home loan, however not everyone will be approved for a new mortgage. A lending company will always look at the debt to income ratio as one of the criteria for lending to a customer. This ratio is based on how much income is made each month by the borrower and how much debt the borrower must turn around and pay back out for charge cards, car payments, and other outstanding debts. So take all one's income before taxes, divide it all by the entire amount of the credit bills someone pays (not utilities, food, gasoline, etc.) and see what the number is. Anything over forty to fifty percent will eliminate most people from being able to get a refinance mobile home loan. Do not make any more credit purchases in the weeks before going to see a loan officer, for this may prohibit a lending agreement being secured.

A lender will also want to check a borrower's work history to verify steady employment and will want to have the manufactured home appraised to check on its actual condition and value. To consider a refinance mobile home loan, owners need to understand that depending on the circumstances for borrowing, refinancing a mortgage is like starting over again. And if the money that is received in a cash out mortgage is spent on items that depreciate or quickly wear out, the long term effect of paying for those things can be quite damaging to someone's emotions, often leading to depression and sadness. Before ever agreeing to a refinance, take a lot of time thinking about the reasons and motives behind such a drastic financial decision. Seek out the wisdom of someone who really knows how to handle money wisely.

Spend much time looking around for the lender that will provide the best refinancing rates. Get loan offers from at least three or more lending companies. Do not be afraid to take the offers and show them to the other lenders. In other words, make the lenders compete for your business. Remember that if the borrower shows any weakness in terms of despair or begging, lenders will take advantage of that persona. Remain in the driver's seat and really get the best deal!


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