Information on mobile home refinance timing - The Bills.com Blog

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Information on mobile home refinance timing

Question: What's is the legal time period the buyer of a mobile home can refinance after the purchase of a new home?

Answer: You do not have to wait for a long time in order to refinance. What you do need to see is that if there is a prepayment penalty clause (if any).

Generally speaking, lenders do not like to offer refinance loans on mobile homes because, unlike homesthat are built on permanent foundations, which tend to gain value over time, mobile homes tend to lose value, or depreciate, as time passes. Refinance lenders take a security interest in a home on which they lend money, in case the borrower defaults on the payments, allowing the lender to foreclose on the home. During a foreclosure, a lender will sell the home to recoup as much of their money as possible. However, since mobile homes tend to lose value over time, it is much more difficult for lenders to get their money back through a foreclosure. For example, if a lender loans you $50,000 on your home based on its current value, and you default on your payments 10 years later, the lender may only be able to sell the property for

$10,000, meaning the lender would lose a significant amount of money in the process.

If you want an introduction to pre-screened mortgage lenders, Bills.com makes it easy to compare mortgage offers and different loan types. Please visit the loan page and maybe you can find a loan that meets your needs at: Mortgage Refinance Quote

While most standard lenders do not offer refinance loans on mobile homes, some specialty lenders will allow borrowers to refinance their mobile homes. You should keep in mind that loans on mobile homes are not the same as standard mortgage loans. Rather, they are generally referred to as personal property loans, and carry higher interest

rates and shorter loan terms than regular mortgages. If you are interested in obtaining a refinance loan for your mobile home, you should look for a specialty lender who offers mobile home refinancing, such as http://www.mhloans.com.

Again, you will probably pay a higher interest rate on a mobile home refinance loan than a standard home loan, so refinancing your mobile home may not be a sound financial decision. You need to make sure that the interest rate being offered to refinance your home will not cause you further financial problems.

I hope this information helps you Find. Learn. Save.

Best,
Bill
www.bills.com

Also, make sure to get a free financial health check-up with Bills IQ!

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Bill has answered all sorts of questions and has been able to provide those in need of financial guidance with helpful and valuable advice and information on their specific financial area of interest. If you need specific guidance on any of the above mentioned financial areas, feel free to Ask Bill your financial questions and get better informed. Also, make sure to get a free financial health check-up with Bills IQ!

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