Refinancing your home is becoming more popular nowadays, as people chase lower rates and better loan conditions. So why not think about refinancing your mobile home too? There are lots of good reasons to consider it.
Firstly, what does refinancing your mobile home loan involve? Basically, you pay out your original mobile home loan with a new one. So effectively you replace one loan with another one that better suits your needs and circumstances. You will need to go through the same application process again, with all the same financials and credit history information required. But if you qualified once, chances are you'll qualify again.
Now, on to some of the benefits of refinancing your mobile home loan.
Lower Interest Rates
If you've had your mobile home loan more than a couple of years, and you're on a fixed rate loan, chances are you're paying a much higher interest rate than you need to. A mobile home refinance loan could see you saving a substantial amount in interest over the course of your loan.
Payment Certainty
Many mobile home loans are adjustable-rate mortgages, which means that as interest rates change, so does the mortgage rate. This is great when interest rates are declining, but with interest rate already very low, chances are the only direction likely is up. You don't want to get caught with substantial rises in your monthly repayment, so refinance to a fixed rate mobile home loan, and you can be certain what your payments are going to be into the future.
Better Customer Service
Let's face it, dealing with a lending company isn't always a top-notch experience - customer service can be lacking in a big way. It could also be that your current lender refuses to make changes to your loan that would better suit you. So look around for another lender who might be more sympathetic to your requests, and who gives better customer service overall. With a mobile home refinance, for example, you may be able to increase the length of your current loan term, and so lower your repayments.
Capped Interest Rates
Again, if you have a standard adjustable-rate mobile home loan, you're at risk of rising interest rates making your payments unaffordable. By refinancing your mobile home loan, you can take out a new loan where the interest rates are capped at a certain level. That way, the interest rates may rise a little, but once they reach your capped level, your rate is then fixed. In some ways this gives you the best of both worlds - you can take advantage of adjustable rates when interest rates are low, but you have a fixed rate come into effect if interest rates start rising.
Extra Cash
Like most homes, a mobile home will inevitably need some repairs or refurbishment. With a mobile home refinance, you can pull out any extra equity you've built up in your mobile home as cash, which you can then spend on doing the required work.
Consolidate Debt
If you've had your mobile home loan for a while, chances are you now have considerable equity in your mobile home. If you've built up credit card or other high interest cost debt, it may be worth considering consolidating those debts into your mobile home loan. That way, you can pay off your outstanding debt at high interest rates and pay it all off in one easy to remember monthly payment at a much lower interest rate. Just don't make the mistake of going out and spending up big on your credit cards again once you've paid them off - cut them up if you have to.
Find lots more helpful mortgage refinancing informaiton at Home Loan Zone Central
