That is an outrageously high loan rate, and you are paying almost all interest on this loan. I think that you should take some aggressive action to solve this problem, or this mobile home loan will keep burning a hole in your pocket. Your options are basically to try to refinance the mobile home loan, or sell the double-wide or just let them foreclose or short-sale it back to them.
First, you should certainly contact lenders to find out what refinance options are available to you based on your current financial situation. The only way to determine whether or not you will qualify for a refinance loan is to apply for a loan with several different lenders and/or brokers. Unfortunately, it is very difficult to get approved for mobile home loans given the state of the credit markets, but I suggest applying and seeing what happens.
Bills.com makes it easy to compare mortgage offers and different loan types. Please visit the Bills.com loan page to find a loan that meets your needs.
Not only will these mortgage professionals be able to tell you whether or not your currently qualify, but if you do not qualify, they can tell you what aspects of your financial situation might cause you problems, and make suggestions about how to improve your chances to qualify for a loan.
If you would like to read more about mortgage refinance loans, I encourage you to visit the Bills.com Home Refinance Resources.
Here are a potential lender's two main considerations:
First, your credit history is a major consideration when you are shopping for a new mortgage. A favorable credit score will increase your chances of finding a loan that will lower your monthly payments, since you will qualify for better interest rates than those available to people with credit problems. Currently, the average interest rate for a new 30 year fixed-rate loan is 6.3%, and the average FICO credit score is 723. So, if your credit score is better than 720, you should expect to qualify for an interest rate of around 6.3%, or possibly lower. However, if you have had credit problems in the past, you could be forced to pay a significantly higher interest rate, which could make your monthly payments much higher. For example, the monthly payment on a $100,000 30 year mortgage at 6.5% is approximately $630, plus insurance, taxes, etc. If the interest rate on the loan increases to 9.5%, the monthly payment increases to $840, an increase of over $200 per month. As you can see, your credit score, which is one of the major determinants of your interest rate, is extremely important when shopping for a new mortgage.
Second, the amount of equity in your home, and the length of time you have been paying on your current mortgage will also be major considerations, since you are looking to pull money out of the home and lower your monthly payments. To lower your payments, you must either obtain a loan with a lower interest rate than your current mortgage, find a mortgage with a longer repayment term, or borrow less than the original balance of your current mortgage. For example, if you have $60,000 left to pay on a $100,000 mortgage, you could cash out $40,000 in equity and keep the same monthly payment as the old loan, assuming the interest rate and loan term remain the same. However, if the balance of your new mortgage will be more than that of your old mortgage, you must either find a lower interest rate or take a loan with a longer repayment term, if you want to keep your monthly payments the same.
As I mentioned before, you need to shop around with different lenders and brokers to find the loan that best suits your needs. I encourage you to start your search by visiting the Bills.com Home Refinance Resources where you will find a wealth of information about home refinance programs.
If you cannot refi your mobile home loan, I think it is prudent to see if you could rent something similar for a lower cost and then evaluate a short-sale or allowing them to foreclose on your double wide.
I wish you the best of luck. I hope that the information I have provided helps you Find. Learn. Save.