How To Refinance Mobile Home Mortgage
Those with a mobile home may need to know how to refinance a mobile home mortgage for one reason or another. Unfortunately, refinancing a mobile home tends to be more difficult than refinancing a freestanding home. So when you find yourself needing to refinance your mobile home's mortgage, be sure to follow these steps to make the process as painless as possible.
- Understand why you want to refinance. This may sound obvious, but you want to make sure you know the exact reasons why you want to refinance. Do you want to lower you monthly payments? Get out of an adjustable rate mortgage? Or do you want to cash in on the equity in your mobile home? By knowing why you want to refinance, you are more likely to choose the right refinancing financial product for your situation.
- Lower your debt and increase the money in your savings account. The better financial situation you are in, the more likely you are to get the loan you want and the better rate you rate you are going to get. So start paying off your credit card debt to increase your credit score and get some money in the bank now to help prepare for when you refinance.
- Start saving for a down payment. Most lenders who specialize in refinancing mobile homes require a larger down payment than if you were refinancing your typical home mortgage. So, work extra hours, cut down your budget and sell some items you no longer need to come up with some money for a down payment. Doing so now will keep you from having to scramble to get that money later.
- Decide what type of refinance you would like to do. Taking into consideration why you would like to refinance, look at the different refinance options available to you. If you are needing a lower interest rate, lower payments or are trying to get out of an adjustable rate mortgage, look into a fixed rate mortgage. Need some cash for home improvements? Choose a home equity loan to borrow against your home's equity. Just remember that the right option depends entirely on your situation and is not one-size-fits all.
- Shop around for a mortgage lender that specializes in mobile homes. Most lenders try to avoid refinancing mobile homes. However, there are a few mortgage lenders that choose to specialize in mobile home lending. Find three to four of these to comparison shop that offer the type of refinance you need so you can find the best deal on your refinance.
- Sign the paperwork only after you understand what you are signing. Though it is easier to have your lender quickly break down what it is you are signing, it is not smart. Take the time to read every word of your loan documents to make sure you are really signing what you think you are signing and understand the fine print. Many home owners with adjustable rate mortgages wish they would have done this and are now facing foreclosure. So be smart and follow these steps so you get the best refinance option for your mobile home.