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Refinancing a manufactured home can be a great way to lower not only your interest rate but also your monthly payment. But there are 5 mistakes that many people make that you need to avoid in order to get the best deal for your financial situation. 1. Picking the wrong reasons for choosing a manufactured home lender. Most people fail to look at the whole picture when it comes to choosing a lender. That low interest rate that being dangled in front of you may look good but there is more to consider then that. Many lenders try and make up the difference from an offered low rate by charging extra fees. To protect yourself from this practice be sure to get a Good Faith Estimate from each lender you are thinking of doing business with. The Good Faith Estimate will list all the closing costs and fees associated with the loan, allowing you to choose the lender with the best deal for you. Don’t assume that your current mortgage lender will give you the best deal either. Ask around among your friends and co-workers who may have just refinanced and see if they have any recommendations for a good lender. This doesn’t mean your current lender won’t have a good deal for you but it pays to shop around. If you do find a better deal show it to your current lender and see if they will beat it. In many cases they will. 2. Trusting a loan officer who gives you nothing more then a handshake and their word. Everything agreed upon should be done so in writing. Someone’s word is worthless when it comes to loan contracts. If a low interest rate is being guaranteed it need to be in writing. 3. Don’t ever attempt to refinance without knowing the appraised value of your manufactured home. Not knowing its true value can lead to problems further down the line. For instance borrowing more then the home is actually worth. Being upside down on your mortgage is a bad financial place to be. Most lenders require an appraisal and will role the cost into the refinance, but beware of the lender that doesn’t ask for one to be done. Know the value of your home. 4. Not doing the math on the refinance numbers can be a big mistake. There is a definite cost to any loan and you need to see if it makes financial sense. The big factor in determining the cost is how long you plan on being in your home. If, for instance, you plan on staying in your home for only 4 more years it may not make sense to do a loan refinance. If the closing costs and fees are $4000 the monthly payment will need to be lowered at least $83 per month for a savings of $1000 per year. If you are saving less then that, say $45 which is $540 a year, then it doesn’t make sense to do the deal. 5. Look at taking out a second mortgage instead of refinancing the whole amount. If you need some extra money a second mortgage can be a better choice instead of adding to your overall mortgage. In most cases you can pay down the second quickly, regaining the equity in your home in a much shorter time period then if you add that extra cash to your first mortgage. There is a real cost involved when doing a mortgage refinance. Consider these 5 manufactured home refinancing mistakes carefully and avoid ensuring that you are making sound financial decisions. To learn more about manufactured home loans please visit the website Manufactured Home Loans & Refinance by Clicking Here.
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