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How do I Refinance a Mobile Home?

Article Details
  • Written By: Malcolm Tatum
  • Edited By: Bronwyn Harris
  • Last Modified Date: 09 September 2019
  • Copyright Protected:
    2003-2019
    Conjecture Corporation
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Many people are unaware that it is possible to refinance a mobile home. While the task may be somewhat different from refinancing the mortgage on a house or commercial building, a number of lenders offer refinancing options that are specifically geared toward this type of financial transaction. As you look into those options, make it a point to compare interest rates, terms and conditions found in the loan contract, and how the refinancing will improve your overall financial condition.

Begin your quest to refinance a mobile home by looking at the type of loan you already carry on the asset. If you currently have a true mobile home mortgage, the task of refinancing may require nothing more than working with your current lender. Assuming that the mobile home has retained its market value, chances are you have built up equity in the asset. This will go a long way toward helping you refinance to a better rate of interest, lower your monthly payments, and possibly even shorten the duration of the debt obligation.

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Many mobile homes are not financed with a mortgage. Instead, they are financed with what is known as a chattel loan or personal property loan. This is usually the case when the mobile home is not permanently attached to a piece of property. If you did not own property at the time you originally purchased the mobile home, but now have the home situated on land that you own and have attached it according to local standards and regulations, you may be able to refinance a mobile home with a true mobile home mortgage. The benefit is that a mortgage generally has more competitive interest rates than personal property or chattel loans, allowing you to save a great deal of money over the life of the refinanced loan.

Always compare offers from several different lenders before deciding exactly how to refinance a mobile home. Just as with mortgages on houses, there is likely to be some slight differences in interest rates and general terms offered by each lender. Compare everything, not just the interest rates. This will help you avoid paying too much in the way of various and sundry fees for services that may be free with one lender, but incur a charge with a different one.

Only after you have identified the best possible rates and terms should you proceed to refinance a mobile home. The ultimate purpose is to improve the financing you have on the asset, so that you can move forward with other financial goals. Make sure you get the best refinancing deal possible, and never hesitate to ask if that is the best that a given lender has to offer. You may be surprised at what types of terms you can command by simply asking for those better terms.

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