Manufactured Home Refinance Loan Highlights

Which manufactured refinancing option is best for you?

There aren't quite as many loan programs as there are borrowers, but it seems like it sometimes! We'll work with you to qualify you for the best mobile home refinance loan program to fit your needs. But there are some general considerations you can have in mind in advance.

Are you refinancing primarily to lower your rate and monthly payments? Then your best option might be a low fixed-rate loan. Maybe you have a fixed-rate mortgage now with a higher rate, or maybe you have an ARM -- adjustable rate mortgage -- where the interest rate varies. Even if it's low now, unlike your ARM, when you qualify for a fixed-rate mortgage you lock that low rate in for the life of your loan. This is especially a good idea if you don't think you'll be moving within the next five years or so. On the other hand, if you do see yourself moving within the next few years, an ARM with a low initial rate might be the best way to lower your monthly payment.

Are you refinancing primarily to cash out some home equity? Maybe you want to pay for home improvements, pay your child's college tuition bill, take your dream vacation, whatever. Then you'll want to qualify for a loan for more than the balance remaining on your current manufactured mortgage. If you've had your current mortgage for a number of years and/or have a mortgage whose interest rate is higher, you may be able to do this without increasing your monthly payment.

You want to cash out some equity to consolidate other debt? Good idea! If you have the equity in your home to make it work, paying off other debt with higher interest rates than the interest rate on your mortgage -- for example, credit cards, home equity loans, car loans, some student loans -- means you can save possibly hundreds of dollars a month.

Do you want to build up home equity more quickly, and pay off your mortgage sooner? Consider refinancing with a shorter-term loan, such as a 15-year mortgage. Your payments will be higher than with a longer-term loan, but in exchange, you will pay substantially less interest and will build up equity more quickly. If you have had your current 30-year mortgage for a number of years and the loan balance is relatively low, you may be able to do this without increasing your monthly payment -- you may even be able to save! For example, let's say years ago you took out a $150,000 30-year mortgage at eight percent. Your payment is about $1,100, exclusive of taxes, insurance and so on. If your balance today is down to $130,000, you might take out a 15-year mortgage at six percent and have an almost identical monthly payment. This is a great option for people whose main goal is not to save money on their monthly payment but rather want to build up equity and pay off their home more quickly.

Using Your mobile home's Equity (it's yours)

If you have equity in your home, we can show you how to save money and increase your standard of living. No matter what your needs or credit history, our expert mortgage consultants can design a loan program for you.

What Can Equity Do For You?

• You can pay off high interest credit cards and consumer debt to lower your monthly payments.
• You can increase your tax savings because mortgage interest is tax deductible.
• You can add that new room to your home that you have wanted to do for years, increasing your standard of living and the value of your home.
• You can take cash out for a vacation, new furniture, or investments with a low cost of money, also increasing your tax savings.
• You can buy out of your Ch. 13 bankruptcy and start over with a clean slate.
• You can get those collection companies off your back by paying off your past due accounts.
• You can finance your child's education that means so much to you.
• You can get cash out for an investment property or second home in that tropical paradise you visit each year.
• You can get an equity line of credit for a new business venture.
• You can save hundreds of thousands of dollars in interest expense by decreasing your mortgage term, especially with a bi-weekly payment plan.
• Put a down payment on your next home.

Example: Debt Consolidation

Current Mortgage Balance: $150,000

Credit Card 1: $10,000 $206/month
Credit Card 2: $7,000 $144/month
Credit Card 3: $5,000 $103/month
Dept. Store: $2,000 $40/month
Auto Loan: $18,000 $333/month

Current Monthly Payment: $1,979
New Monthly Payment: $1,264

Total Monthly Savings: $715

Example: Tax Savings

You have $25,000 in consumer debt. Your current tax savings is $0.
Your tax bracket is 28%. You refinance your home at 7% and use the equity to pay off the $25,000 in consumer debt. Your tax savings is $490!

Example: Term Reduction

You have a 30-year mortgage with 28 years remaining at 8% fixed. You refinance to a 15-year term at 5.5% fixed. You will save a whopping $177,088 in interest over the life of the loan!

Example: Cost of Money

A typical credit card interest rate ranges from 12% to 17%. If you have $10,000 in credit card debt at 15%, you are paying $1,500 for the use of that money per year. That is your cost of money. What if you took that credit card and used the equity in your home to consolidate that debt at 7%? Now, your annual cost of money is $700! This is an annual savings of $800. Over the life of your mortgage, you save $24,000!

Example: Cash Out

You have a $250,000 mortgage with a monthly payment of $2,011.56. You refinance and get $25,000 cash out to add a new room to your home and take a vacation. Your new monthly payment is $1,708.72, based on a 6% 30-year fixed mortgage. You not only get the $25,000 you want, you also save $302.84 per month!

Don’t forget—we can show you how to skip a monthly payment on your mortgage and consolidated debt. That’s thousands more in savings!

Request a loan and a professional mortgage consultant will contact you and give you the personal attention you deserve throughout the loan process. Our team will analyze your needs, determine your buying power, and negotiate the best possible program designed specifically FOR YOU.

 Mobile Home Loans Q & A  

• What is the Fico range for good, fair & bad credit rating with manufactured lending?
  Good credit is usually defined as the borrowers with few if any past or present collections, good income & credit over 680 fico. Fair credit borrowers would have more deragatories, lower income & credit from 600 fico to 679. Generally bad credit is those clients with a previous bankruptcy or significant ongoing collections and/or leins, significant debt, lawsuits amd/or past or present ongoing foreclosure and a credit score of 599 and below. (in some cases credit score is not the only determining factor for a fair credit loan. We will always try to qualify you fair credit first)
• What is debt to income ratio?
  Debt to income ratio is the calculation used by us to determine how large of a loan balance your income can support. Typically this calculation is figured by adding all your bill's minimum payments due each month, your space rent & new mortgage payment divide by your gross income.
• What is the lowest down payment I can put down: for good credit 5% down on land home & in park. In some case we allow for 100% financing when getting the home at a significant valuation.
• What loan term will be best for me?
  This depends on your goals. If your goal is to pay off the home quicker then a shorter term is suggested. If your goal is lowest payment then a longer term is best.
• What will my closing costs be?
  Good credit borrowers never pay points & the closing cost for these borrowers is usually $1300 to $1800. Bad credit borrowers will usually have to pay points. Typically, our closing cost ranges from $2700 to $4800 depending on the loan size. (In some cases bad credit borrowers may require more closing cost depending on overwhelming negative factors)We do have no closing cost programs.
• Can I consolidate bills? Yes. In some cases we actually may have to pay bills to get your debt versus income inline.
• Can the seller assist with down payment?
  Not on good credit loans. In CA, OR & WA we have a program where the seller can assist with securing part of the risk in a bad credit mobile home purchase loan... they may also assist with closing cost, repairs, fire insurance and home warranty. We do allow gift for down payment. 
• What items must be prepaid?
  There are no pre-pay items. Typically we allow you to finance into your new bad credit purchase loan up to 2 year of fire insurace, 2 years of a home warranty program, closing cost and up to 6 months of space rent.
• How long is quoted interest rates good for?
  Called a rate lock, under normal instances we lock the rate for 60 days which is free to the client. 
• How long will the approval take?
  With a complete file and motivated client approvals take 30 minutes with loan closings in as quick as 3 days for bad credit & 7 days for good credit.
• Will the loan have a prepayment penalty?
  Absolutely not. Even with a bad credit standing we won't be assigning a pre-pay penalty. 

• Experience.
  Founded in 1999, LoanJunction.com has processed and funded 10's of thousands of mobile home loans.
• Customer Service.
  We are only as good as our last clients says we are. That's why with every customer we'll move mountains for the privilege to be your lender. With caring staff, 24 hour customer service & online account management we intend to move mountains for you for years to come.
• Financial Resources.
  LoanJunction.com is a national lender drawing upon over 4 billion in investment capital for our clients needs. 
• Track Record.
  You don't get to be a proud AAA rated Better Business Bureau company by doing things the wrong way. We intend to keep it that way.
• Community Support.
  We have a larger responsibility to support our clients long after the transaction is done. Please visit our Park Crime Prevention Page to join us in keeping our park communities safe and crime free; Also As rent control advocates, no one is more out spoken about keeping our parks free of exuberant & predatory rent increases.
• Technology.
  With an eye on the 22nd century, our client management services are second to none. Our award winning online operations coupled with 24 live customer service, automated bill pay and rate decrease notifications we stand at the forefront of mobile home lendings' long awaited technological revolution.
• Hands On.
  There are no substitutions for rolling up the sleeves to get the job done right. That's why each client is assigned a proven & considerate account executive to oversee the loan transaction from start to finish. This is your guy or gal in the trenches with their "hands on" approach.
• Accountability.
  Each staff member is 100% accountable to you and your needs. Whether the loan has unforeseen difficulties, or tough measures need to be taken, our staff from the president on down will always field your calls and/or concerns.

Last Updated:  Thursday, January 03, 2008 

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