Mobile Home Loan Rates
If you’re thinking about purchasing manufactured housing, then you will want to know about mobile home loan rates. If you’re new to the home loan market, you undoubtedly have a million questions swirling around in your mind. If you’ve been around the home mortgage block a few times, you’re probably interested in the rates offered.
What Kind of Residence is Your Manufactured Home?
First, the terms mobile home and manufactured home are generally synonymous; they both describe a home that is manufactured at a factory, then shipped to its destination. A “regular” home, in contrast, is built on its final location.
Mobile homes can be a primary or a secondary residence. In other words, you may choose to make the manufactured house your permanent residence, or it could be used as a vacation home. How you choose to utilize it may or many not affect your manufactured housing loan rates.
Types of Mobile Home Loans
Similar to other housing, manufactured home financing can be either variable-rate or fixed-rate. Variable mortgages have a low introductory rate; that rate can go up or down, depending on the amount the Federal Reserve charges. While the low initial interest costs are quite appealing, they can get out of hand when the interest rates start to rise. This is an unhappy fact that caught many people out when the housing bubble popped several years ago.
A fixed-rate mortgage charges the same interest rate for each year of the mortgage, no matter how the Federal Reserve rates change. While your mortgage payment may vary slightly from year to year (due mainly to insurance and taxes), they are fairly predictable.
Mobile Home Loan Rates
You’ve found the manufactured home you want, and you know pretty much what you can afford to pay for a mobile home loan mortgage. So where do you start looking for rates? And who makes these kinds of loans?
In general, the same organizations that do financing for “regular” houses also provide financing for mobile homes. You can locate them most easily online, but you can also check on some of your local bank and loan agencies for rates.
When researching rates online, you may want to try getting comparison quotes. This means that you fill out one form, and up to 5 organizations may respond to your inquiry into mobile home loan rates. One good reason for getting a comparison quote is that you need only fill out a form once (instead of, for example, 5 times). Of course this means that you’ll be getting quite a few calls, but that’s what you need anyway – a good comparison of the manufactured home loan rates.
Once you’ve found a rate and mortgage you can live with and are approved, it’s just a matter of paperwork. Then, with your mobile home loan rates in one hand and the final mortgage in the other, you have a house to call home.