Tuesday, April 26, 2011

Mobile Home Loan Refinancing

If you have purchased a mobile home, you may have done so with a mortgage loan, a chattel loan or simply a personal loan. In any case, if your monthly payments have become too much of a burden or if you just want to repay your loan sooner or improve the terms and conditions of your loan because your credit has improved, what you need is refinancing.

It is possible to refinance a mobile home loan, yet, it is not such an easy task when compared to home loan refinancing. There are several reasons for this but the main ones are undoubtedly the fact that mortgage home loans are a wider market than mobile home loans that are simply a small niche of the financial industry and also due to the fact that mobile homes are still vehicles with values that are reduced over time.

Mobile Home Loans: Mortgage, Chattel or Unsecured Personal Loan

When you purchased your mobile home you may have done so with the aid of different financial products depending on the terms of the purchase. For instance if you purchased the mobile home plus the land in certain states you can obtain a mortgage loan and secure the debt with both the mobile home and the land, if the land is not included and only the mobile home secures the loan, then you are applying for a chattel loan and if there is absolutely no collateral then the money is obtained from an unsecured personal loan.

Refinancing each of these financial products is a different process and therefore has different costs. Some of these loan products are easier to refinance than the others and therefore you need to know these differences beforehand in order to understand which possibilities in terms of refinancing your mobile home debt you have. In any case, refinancing is possible but the costs may persuade you against the idea.

Issues with Mortgage And Chattel Loans

Unfortunately, refinancing a mortgage loan with your mobile home is not as easy like refinancing a mortgage loan with a regular property. The reason is simple, while most houses and condos maintain or increase their value over time and thus, equity builds due to that and due to the reduction of the debt secured by the property, mobile homes depreciate and thus, equity builds at a lower pace if it builds at all.

Chattel loans have exactly the same problem, the mobile home being used as collateral depreciates and the value of the property covers a lower portion of the loan each year even as the debt gets paid. Moreover, mortgage loans have an advantage over chattel loans because the land is included and the land usually does not depreciate thus maintaining an important part of the collateral's value.

Personal Unsecured Loans

Personal unsecured loans are much easier to refinance because even if your current lender does not want to provide you with a new repayment program, as long as your credit is fair and your income allows it, you can obtain another loan with your desired terms and use the money to cancel the previous loan in advance. You should beware however of prepayment penalty fees.

Moreover, if you can obtain a secured loan instead (using your mobile home and or the land as collateral), you will get more advantageous terms on your loan and you will be able to cancel the previous loan while getting additional funds for any other purpose.

By: Hilary Bowman
Hilary Bowman is the author of this article. She works successfully as a financial advisor with years of expertise on Unsecured Personal Loans. Hilary publishes informative articles about home loans, credit cards, auto loans, bad credit loans, business loans and others at http://www.fastguaranteedloans.com

Saturday, April 2, 2011

Refinancing Your House - The Pros and Cons

Refinancing your house basically allows you to pay off your current mortgage with a new mortgage plan and with a lower interest rate. When you want to reduce your monthly mortgage payments and enjoy lower interest rates or faster equity, refinancing your house may be the best option. This may actually be the best way out of your current financial plight.

Indeed, refinancing your house can help you save thousands of dollars over your mortgage's length. Your monthly mortgage payment can be lessened substantially, depending on your current interest rates. Even if you have a bad credit, lenders and financial institutions are still willing to provide you a way to refinance our house.

You don't need to apply to different lenders to get information on the lowest rates. Most online mortgage companies will provide you with quotes from various lenders to help you decide.

Refinancing your house will allow you to cut down the term of your mortgage without an increase in the amount of your monthly mortgage payments. However, refinancing also has both advantages and disadvantages which you must consider carefully before taking your course of action.

Knowing, understanding and analyzing these pros and cons will help you make the right choice and avoid future dilemmas that may arise out of an uninformed decision. Here are the pros and cons you should consider.


1. Lower interest rates - probably the most important advantage of refinancing your house is getting rid of the higher rates and saving up as much as $150 a month from mortgage payments.

2. Term of payment can be extended.

3. Change your type of rate - refinancing can help you secure yourself from unexpected rate increases. You can choose to go to a fixed rate from a variable rate through mortgage refinancing.

4. Increase mortgage amount - with refinancing, this is now very possible. An increase in the amount of mortgage can help you settle other debts such as credit cards debts and personal loans. Of course, it still boils down to one thing - lower interest means more savings. Refinancing allows you to exchange one mortgage for another, pay off high interest credit card debts and enjoy a tax advantage all at the same time.

5. Lower monthly mortgage payments - refinancing your mortgage can allow you to ease your cash flow difficulties.


1. Budget-dependent - since mortgage refinancing also means having more than your current mortgage, this also means that you would have to watch your budget more. Bear in mind that if you miss out on payments, you might lose your home.

2. Refinancing is cost-heavy - the total refinancing cost is composed of closing costs combined with private mortgage insurance premiums that you pay when you refinance your loan. Lost tax savings are also considered part of the refinancing cost.

3. You may have to pay more - If you are reckless in calculating your refinancing costs, you might end up paying more instead of saving more, especially in terms of interest charges. So make sure that you ask guidance from your lender to avoid this from happening.

4. Penalty involvement - There could be penalties that will be imposed on you if you fail to meet your obligations when you refinance your house. The best way to prevent this is carefully review the terms and conditions of your loan and follow it to the letter.

These are the important advantages and disadvantages of refinancing that you should consider. To help you find the best deals in house refinancing, you can turn to the internet to find the best home loan refinance services. It will be easier to compare refinancing deals through online services.

A quick search will reveal hundreds of lenders that you can compare. You can also read reviews of refinancing companies to help you make your choice easier. By taking the time to research, compare and analyze, you will be able to choose the right refinancing deal for your house. Just bear in mind all these advantages and disadvantages before you make your decision.

Just like any other mortgage loan, this could work against your favor. To avoid this, discuss your options with your preferred lender. You can also ask guidance and recommendations from your tax advisor.

By Nathalie Fiset
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