The state of the economy has been the forefront of issues on Americans’ minds for quite some time. Home owners, in particular, are concerned about property values as we’ve seen values decline in several popular areas of the country for the past several years. Not all Americans, however, need be so anxious since values in some areas have remained steady despite the economic crisis or even increased over time. Owners of manufactured homes are included in these areas and a manufactured home mortgage refinance could be the economic relief some people are seeking.
A manufactured homeowner who owns land in addition to their home can consider a manufactured home mortgage refinance for several reasons. The usual reason people consider a manufactured home mortgage refinance is because we want to lower our payments, capture a lower interest rate, or simply because economic struggle has necessitated a change in our financing. Typically, manufactured home mortgage refinance is nothing to be afraid of, provided you carefully weigh your options, talk to a financial counselor, and seek a worthwhile lender to help you with the process.
The first step to pursuing a manufactured home mortgage refinance is to weigh your options. Do you want to refinance because you want a lower payment or because you want to save money over the long term? Trying to get a lower payment is not always the most beneficial reason since many lenders will promise you a lower payment, but will charge exorbitant closing costs to get you there. Some may even encourage you to max out the equity in your home to receive a lower payment. Unless a homeowner has adequate equity with land included, a manufactured home mortgage refinance could take a big bite out of the equity. You must analyze all the numbers thoroughly before making the decision. The payment could be lower, but if values drop, you might find yourself “upside down” with few options if you need to sell.
If you are considering a manufactured home mortgage refinance, the preferred reason is to save money over the long term. Interest rates are at an all time low, and lenders have become tighter with lending practices. Homeowners with land included, good credit, reasonable equity, and adequate income should have no problems qualifying for a manufactured home mortgage refinance, which in the long run, could save you lots of money. For instance, if you plan to stay in your home for a long time, a manufactured home mortgage refinance could save you thousands of dollars!