When It Comes To Refinancing…

Refinancing is generally an accepted means to get reduced rates of interest which will bring down the monthly installments. What has to be kept in mind is that before you sign any contract for refinancing your manufactured home, you work out the math. It must show that money is being saved on a long term basis and your installments are lower. Basically refinancing means getting a new loan at better rates than the one you are paying so you pay off the old and start afresh with the new.

The internet will give a lot of information on the prevailing rates of interest. If the rates are low then you could consider the option of refinancing. The internet will also give you information on how to judge if you stand to gain or lose by going in for refinancing.

While on the internet you will come across a lot of companies who conduct business online. There are some important aspects of refinancing to be kept in mind if you have decided on this option. Here they are.

• Construction of the house in question should be on or after 1990.
• The current balance of the mortgage must be over $15,000 and the period of repayment on the original loan must exceed 15 years.
• Land mortgages are not covered under the refinancing scheme.
• Ensure that the company you select is a legitimate company and be sure to check with the Better Business Bureau.

Once a company approves the homeowner interested in refinancing his home there are some basic requirements to be met like job and income verification. The company may ask for other pertinent documents also.

A company bases its approval on three basic criteria:

• Can the borrower afford it?
• What payment history does he have?
• What is the home worth?

So if you are considering refinancing your manufactured home then ensure that you do the necessary research and get the right information before you take a decision or you may end up paying more than what you started out with.

Entry Filed under: mortgage programs

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