The immense popularity of new manufactured homes has drawn many American citizens towards them in the last few years. Almost all manufactured homes are affordable, sustainable, and eco-friendly. Also, home builders construct them very quickly in comparison to conventional, site-built homes.
However, many customers hold the misconception that owning a manufactured home will result in pre-payment penalties and higher rates. In reality, the significant increase in quality and value of manufactured homes has brought better financing opportunities to the homeowners. Below are a few steps you should follow when financing new manufactured homes.
Own the Land
If you recently purchased a new manufactured home, then you are probably financially responsible and aware. Purchasing the land can seem expensive initially. However, when you weigh factors like higher financing rates and the cost of renting, owning a property is actually cheaper.
You also have the option to look for land-and-home packages. If you own the home and the land, then the value of your property will increase significantly.
Opt for Re-Finance
If you opt to go with the financing preferred by your seller or builders, then you do have the luxury to re-finance out of it. This option is vital because it will help you to make the investment a little bit more personalized to fit your desires and needs.
Manufactured home re-financing is a common thing in the mortgage industry. The “cash-out” type of refinance transaction allows you to re-finance your home and you will be able to enjoy fancy inclusions or upgrades to your home by using the cash.
Make it a 15-Year Term
Many expert homebuilders assert that that the risk endured by a customer on a 15-year mortgage term is comparatively a lot lesser when compared to the length of other finance terms. Experts also note that the rates are a lot more attractive for 15-year mortgage term.
Customers who are three or four years into a 30-year mortgage term can easily re-finance it into a 15-year mortgage term. One of the major perks of this option is that the monthly payment submitted by customers will stay around the same amount.