For many, owning a mobile home means having the freedom to pick up and move their home wherever they want. On the other hand, many people who own mobile homes decide to stay in the same place for a decade or more. Either way, there may come a time when it is time to refinance your home.
Home refinancing makes good financial sense for a number of reasons. For many who choose to refinance their home, the main reason to do so is to increase their monthly cash flow. By refinancing at a lower interest rate, it’s almost like getting an instant raise from your employer. But instead of increasing your income, you’re just reducing a significant monthly expense – your monthly loan payment.
If you have a bad credit score, you may be resisting the idea of applying for a home loan refinance. This is a common reaction to the idea of refinancing for people with a bad credit score: They worry that they will waste time applying.
If you are interested in refinancing a mobile home loan for someone with bad credit, here are 5 tips that can help:
1. Evaluate your mobile home for current market value:
Get started by working with a real estate agent or your mobile home park operator to get an appraisal or market value estimate for your home today.
2. Understand the impact of your credit score on the loan rate you may qualify for:
Understand that most mortgage lenders will focus too much on your credit score. However, a handful of lenders are quite comfortable approving bad credit loans.
3. Know all the details of your current loan:
To start the financing process, look up the details of your current loan. In particular, find out your current (unpaid) loan balance, your monthly payment, and your interest rate.
4. Understand when it makes the most sense to refinance your mobile home:
It makes sense to refinance your home if you can qualify for a better interest rate than what you have on your current mortgage. Also, you want to keep your closing costs (that is, the cost of refinancing the loan) to a minimum. The goal is to lower your monthly payments as well as the total cost of your loan.
5. Learn how to find bad credit mobile home refinance lenders:
As mentioned above, be sure to exclusively search for bad credit mobile home refinance lenders. These are by far the most likely to approve your loan application. Also, make sure your candidate list includes at least 5 lenders.
Use these 5 tips to refinance your home, even if you are a person with bad credit.