14 Sep, 2023

Comparing Mobile Home Refinancing Rates: Finding the Best Deals

6 Factors Influencing Mobile Home Mortgage Rates

The micro-living trend has become popular in recent years due to the rise in the cost of living and increased rents. Residents who are unable to afford a new home, manage monthly expenses, and make any new improvements to their existing homes are now planning to either move to mobile homes or use their mobile homes to refinance.

“Seek home for rest, for home is best.”

- Thomas Tusser

You might be a mobile home owner who is looking to lower your monthly payments or transition from a rent-to-own arrangement, one crucial aspect to keep in mind is mobile home mortgage rates. In this blog, you will learn 4 ways to find the best mobile home mortgage rates, how to consider rent to mobile homes as an alternative and explore how to find the best deals. Let’s quickly get into the details about Mobile home refinancing.

What is Mobile home refinancing?

We know what a mobile home is! But, what is mobile home refinancing? Let’s get to the basics of mobile home refinancing. It is the process of replacing the existing home loan with a new one. Most people go for a refinancing process to ultimately lower their monthly payments or to secure better terms.

Most people opt for mobile home refinancing, to use their home equity for other investment purposes. Before getting to the rates and finding the best deals, it is essential to understand these basics. Now, we will look into the factors that influence mobile home mortgage rates.

6 factors influencing mobile home mortgage rates

In general, mortgage rates are highly variable. Mobile home mortgage rates are influenced by several factors that can have a direct impact on the terms that will be offered in your mobile home loan.

Interest rates in the mortgage market

We know what you’re wondering about! Should I look at the entire mortgage market rates or should I just watch out for mobile home mortgage rates? The interest rates in the broader mortgage market play a huge role in determining mobile home mortgage rates. When the interest rates are low in the market, you can get a favorable rate.

Credit score and history

We all have credit cards and use them for various reasons. It shows an individual’s creditworthiness. Your overall credit score and your credit history will influence the rates you obtain for mobile home refinance. If your credit score is high, lenders generally offer lower interest rates.

Loan to value ratio

The ratio between your loan amount and the appraised value of your mobile home can affect your rates. A lower LTVcan help you get better rates.

Type and loan term

Your rates might differ as you choose your desirable term 15 years or 30 years. The type of loan (Fixed or adjustable) also plays an important role in determining your rates.

Economic conditions

Changes that place in the economy, be it inflation or deflation, rate of unemployment, and changing technological trends play a major role in determining your total mortgage rates.

Location

The place where your mobile home is located influences your rates as different regions have varying market conditions and lender competition.

Did you know?

In February 2022, approximately 3.2 million adults aged 60 and older lived in mobile homes, according to the Census Bureau’s Household Pulse Survey. This number represents nearly one-third (31 percent) of the total 10.5 million adults aged 18 and older living in mobile homes.

Importance of comparing rates

One of the best ways to procure the best deals during your mobile home refinancing is by comparing rates and quotes from multiple lenders. Different lenders have varying terms and rates. That is why comparing rates will help you to get the best refinancing rates, that do not damage your wallet.

We know it is time-consuming, but it is worth spending your time looking for quotes from multiple lenders. With the help of comparing quotes, you get to choose the one lender who is providing the best option that fits your pocket.

Variability in rates

There are no standardized mortgage rates. Not every lender offers the same set of rates. Each lender might have different criteria for determining their rates. With the help of comparison, you get to find a lender who is willing to offer you competitive rates.

Credit score assessment

Some lenders could be quite lenient than the rest when it comes to credit score requirements. Your credit score has a significant impact on the rates you can secure. While it is important to have a good credit score, it is equally important to find a lender who can be quite lenient to be able to align with your credit profile.

Negotiating power

When you have multiple offers from lenders in hand, you get the power of negotiating. You can encourage lenders to provide more favorable terms with the help of competing offers you have.

Where can you obtain mobile home refinancing?

Now that you know how to compare and negotiate your terms, there are different sources to provide you with offers and quotes for mobile home refinancing. It is important that you make the right decisions by exploring a variety of options.

Here are some key sources that many individuals choose:

Online mortgage comparison websites

With the scope of online improvements, there are a lot of websites that offer comparison tools and resources to compare mortgage rates from different lenders. Using these websites, you need to input your information and get multiple quotes from different lenders for comparison.

Local banks and credit unions

Traditional financing institutions, like these local banks and credit unions, offer competitive rates for mobile home refinancing. It is advisable to visit your nearby branches and discuss your refinancing needs to know more about their offers.

Mobile home refinancing specialists

There might be lenders who specialize in processing applications for mobile home refinancing. They will have a unique understanding of all the aspects of mobile home loans. You can learn how to secure competing rates from these specialists.

Government-backed loan programs

Government agencies offer programs that support mobile homeowners to process their refinancing applications. Finding out these programs and exploring them can lead you to attractive options.

Comparing mobile home refinancing rates - How to do it in 5 ways?

Gather all your financial information before you step into the process of comparing quotes. Get all your credit reports, mobile home loan documents, and your overall income/expenses. This is necessary to streamline your comparison process.

Reach out to all the lenders you have researched, and request quotes from multiple lenders for your mobile home refinancing. Make sure you provide correct and similar information to each lender to receive accurate quotes.

Once you have a bunch of accurate quotes in hand, carefully review and compare the interest rates they offer. Pay close attention to all the loan terms that can impact your monthly payment. In addition to this, consider calculating the closing costs which vary from one lender to another affecting overall refinancing costs.

Analyze offers with your financial goals and compare how each goal aligns with them. Your goal could be to reduce monthly payments, shorten the loan term, or access home equity for other investments. Choose an offer that best fits your needs.

Try discussing the potential impact of improving your credit scores. If you come to know that your credit score acts as a hindrance to securing the best mortgage deals, discuss the possible chances and strategies to improve your credit score. Higher credit scores can get you better rates over time.

Rent to own mobile homes - An alternative to mobile home refinancing

Many individuals view mobile home refinancing as the common pathway to homeownership. It is important to note that it is not the only option to become a homeowner. There are alternatives such as rent to own mobile homes. In this arrangement, you can slowly transition from renting to owning the mobile home you currently live in.

Here, you rent a mobile home for a specific period of time and pay rent on an agreed time. During this period, a portion of your rent goes toward building equity.

The rent to own mobile homes arrangement is completely different from the regular mobile home refinancing process as the former offers a convenient way to become a homeowner without the need to make any down payments or mortgage approval.

To conclude

Mobile home refinancing offers the best way to become a homeowner without the need to make hefty down payments, processing fees, and closing costs. Understanding how it works, and the factors involved in influencing the rates will help you find the best deals. Don’t rush the process of securing the best refinancing rates, take time to choose the right loan that fits your budget and financial goals.

By following the steps outlined in this blog, you can proceed with your refinancing journey with confidence, knowing that you've taken the necessary steps to find the best deals and secure a brighter financial future. If you’re confused about all the processes, get in touch with HLRI and we will illustrate all the details to make your refinancing process smooth and swift.