Manufactured Home Refinancing
For the last couple of years interest rates have been
at record lows and it is only a matter of time before they start
creeping back up again. If you own a manufactured home and the interest
rate on your current mortgage is on the high end then refinancing might
be a good idea. It’s also a good idea if you currently have an
adjustable rate mortgage (ARM) and the interest rate is about to adjust.
There are several reasons to refinance your current mortgage; first
getting a lower interest can save your tens of thousands of dollars in
interest payments over the life of the loan; second it can significantly
lower that monthly payment, freeing up valuable cash for other purposes;
and third you can tap into the equity of your home and get extra money
above what you currently owe.
The most compelling reason for manufactured home refinancing is the case
of the adjustable rate mortgage. Even though rates are low now, those
with an ARM face the prospect of increasing interest rates that will
drive up their monthly payments when those loans hit their next
adjustment period. Refinancing out of that arm into a low fixed rate
mortgage can take that anxiety out of the equation, ensuring a
consistent payment for the life of the loan.
If you are considering refinancing your current mortgage here are some
tips to make the process easier.
- Get at least four or five quotes from different lenders for the sake
of comparing in order to get the best deal for your financial situation.
Never jump on the first offer because here might be a better deal out
there.
- Pay close attention to closing costs, fees charged by the lender, and
in some cases third party fees. Excess fees and costs may offset an
offered low interest rate.
- Keep an eye on interest rates as you start shopping around for the
best refinance option. Interest rates will fluctuate on a daily basis,
so it pays to keep an eye on them before you lock in.
- In some instances you can negotiate the interest rate with your
prospective lender. Just make sure that they don’t charge you an
increased fee which may negate the benefit of a lower rate.
- You can also negotiate the lender fees directly with the idea of
saving some money. Any governmental fees cannot normally be negotiated.
Again make sure any fee negotiation doe not affect the interest rate.
- Refinancing is not a good idea if you plan on moving in the next few
years as you will not gain much of advantage on your long term return
even with a lower interest rate.
Manufactured home refinancing is a great way to lower your monthly
mortgage costs. Just keep the above tips in mind as you research your
options to get the best available deal for your budget. | 