Why consider a manufactured home refinance? When you refinance your manufactured home, you are basically getting a new loan, usually with better terms, to pay off or replace the loan you currently have. While the mobile home refinance
loan process is quite different than a real property stick built refinance, financing for manufactured homes is available in space rent parks, co-op parks, parks where you own your own lot, and mobile homes or manufactured homes located on privately owned land. In no particular order , here are the Top Four Reasons to refinance your Mobile Home: 1. For a fixed rate loan, to provide stability
2. To access home equity for home improvements
3. To lower interest rate and/or monthly payments
4. To consolidate debt/pay off credit cards.
The first reason for refinancing your mobile home mortgage is to obtain a fixed interest rate and eliminate the costly adjustable rate feature of your existing loan. Sure, an adjustable rate mortgage is a good way to purchase a mobile home with low initial monthly payments, however, the sporadic rate fluctuations and the potential for large interest rate jumps can be not only alarming, but very costly. This is why many homeowners consider refinancing into a fixed interest rate loan.
The second reason for refinancing is pulling the equity out of the mobile home; this is a popular reason for refinancing. Perhaps you are in need of some cash to pay for your children or grandchildren's college tuition, or you are looking to 
make some home improvements to maintain the value of your home. Planning for retirement is another common reason to tap into the equity you have built up in your manufactured home.
The third reason behind refinancing a mobile home is to lower your current interest rate and monthly mortgage payment. Now this may seem simple; who doesn't want lower payments? But even if you are currently in a situation where you can afford your monthly payments, then refinancing your mobile home loan with a lower interest rate may allow you to shorten the length of your loan, pay it off sooner, and easily make additional principal payments towards the principal balance of your loan from time to time, if you so desire, to pay the loan off even sooner.
Now let's review the fourth reason that mobile home owners have for refinancing; consolidating debt, paying off high interest rate credit cards and auto loans. Taking cash out of your home to pay off debts that have high interest rates and non-deductible interest costs is a very popular reason behind refinancing mobile home and manufactured home loans. The interest on your mobile home loan is, typically, tax-deductible. If you have a considerable amount of credit card and auto loan debt, it can make sense to use some of the equity in your home to pay off these costly amounts. After paying these debts off with a manufactured home loan, the interest you pay on your new mobile home loan is now tax-deductible. Now, keep in mind, it is always advisable to seek advice from your tax advisor about your particular tax situation.
Costs are another important consideration when refinancing a mobile home. Some mobile home lenders now offer low flat rate fees, if you are looking to refinance with the lowest expenses possible. Most borrowers have the option to pay any fees associated with refinancing up front while closing their loan, however one may also be able to include these fees into the new loan amount and keep out of pocket expenses at a bare minimum. Just like a traditional home loan, borrowers can also buy down the interest rate. To do this, borrowers may be charged with points.
Points are additional fees that are paid at the time of closing to the lender that is financing your new manufactured home loan. Usually a point is considered one percent of the new loan amount.
You will want to carefully consider all of your options first with a qualified professional mobile home and manufactured home lender. Knowledgeable lenders that are licensed to do mobile and manufactured home loans in your state should be able to help you decide whether the cost of the loan is worth the savings. Also, they should be able to tell you the facts before you have to make a payment of any sort.
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