BILL'S ANSWER
You do not have to wait for a long time to refinance. What you do need to see if your loan contract contains a prepayment penalty clause.
Generally speaking, lenders do not like to offer refinance loans on mobile homes because, unlike homes that 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 Mortgage Refinance Quote page and see if you can find a loan that meets your needs.
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 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
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