Mobile Home Refinancing

For many mobile home owners, it never crosses their mind to consider refinancing their home loan.  But for many people, refinancing is a good business decision.

As with any loan, when you refinance a mobile home loan, you pay off the existing loan with a new loan.  This new loan should have a lower interest rate, and you will be financing a lower loan balance.  As a result, you can lower your monthly loan payment, which frees up additional money each month to do other things.  

Another advantage of refinancing, you may be able to keep the same monthly payment, but shorten the length of your loan.  This way, you can own your home outright in a shorter time period. 

If you own the land that your home is situated on, you should have a good chance of getting your mobile home refinanced.  You need to check with your lender, since some rules and regulations vary from state to state about refinancing a mobile home.  You lender will be able to help you understand what issues you need to take care of before you refinance.  

The costs associated with a mobile home refinance are basically the same as with any mortgage for a conventional home. There will be closing costs, which can either be paid up front, or rolled into the loan.   If you decide to roll the closing costs into the loan, you need to be aware that this cost will be financed throughout the life of the loan.  If you do not have the cash upfront to pay the closing costs, it is a good option to be aware of.  

There are a few differences when it comes to refinancing a mobile home loan compared to a conventional mortgage, but for the most part, the process is identical.  Check with your lender and you should be able to come up with a refinancing plan that works for you.