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There are a whole slew of options when it comes to getting a mortgage for a manufactured home. Deciding which options to choose can be somewhat daunting but careful consideration of all the possibilities can help the prospective homeowner find a mortgage that works best for them and their financial situation. One of the first options to consider is the life of the loan. Manufactured home lenders offer a variety of loan terms including 15 years, 20 years, 30 years, and in some cases even 40 year loans. The important thing to remember with any loan is that the longer the payback term the more interest will be paid over the life of the loan. Shorter term loans may have higher payments but the savings on interest can be well worth the extra cost, if it fits into the budget. Another option will be the type of mortgage and associated interest rate. The most common mortgage is the fixed rate mortgage. It has a fixed interest rate that remains the same over the life of the loan. This generally means that the monthly payments will remain fixed and not change over the life of the loan. The other type of home loan is the adjustable rate mortgage or ARM. An ARM normally starts with a lower interest rate then a comparable fixed rate loan, but it the interest rate is designed to adjust at fixed periods depending on current market trends. This means the interest rate can go up or down, changing the monthly payments accordingly. There is also the option of choosing what is called a hybrid loan. This type of loan has different payment options but the terms are fixed for certain periods of time. An example would be a 30 year fixed rate loan that allows the borrower to pay interest only during the first ten years of the term and the remaining interest and principal over the last 20 years. Another option to be wary of is any mortgage with a pre-payment penalty. This basically means if a loan that is paid off to soon there will be a payment penalty assessed. While not very common it is important to pay close attention to the terms of any loan and read all the accompanying paper work to ensure that you are not surprised by a pre-payment penalty. Also less common is the option of the combo or piggyback manufactured home mortgage. This type of loan is actually two loans; a mortgage and a home equity loan used as a down payment option for borrowers who have less then the 20% needed for most down payments. This keeps the borrower from having to pay for mortgage insurance which can add a considerable amount to the monthly payment. There are many loan options available for a manufactured home mortgage. It is a good idea to research all options available and make a decision that works best for you and your financial situation. To learn more about manufactured home loans and financing please visit the website Manufactured Home Loans & Refinance by Clicking Here.
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finance, loan, dept, home, consolidation, manufactured home mortgage,
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