Mobile Home Equity Loan Availability
Getting an home equity loan for a mobile home can prove difficult but not impossible as this article explains.
A mobile home equity loan is a typical home equity loan that banks and lenders provide for standard homes. If over the years your mobile home has increased in value and you now have equity available in your mobile home you can borrow against the equity and receive your cash in a lump sum. People in standard homes borrow against the equity in their homes in order to make home improvements, take a vacation, purchase items they desire, payoff credit card debt and for a variety of other reasons. People with mobile homes have the same desires and the same opportunities to take money out of their homes with an equity loan.
The Advantage of a Home Equity Loan
If you acquire an equity loan you will usually be given an inertest rate that is above the rate you currently have on your primary mortgage loan. However, the rate is usually significantly lower than the rate you can obtain from using credit cards. Also the interest that you pay on a monthly basis is tax deductible and that is a nice advantage when compared to other types of loans.
To calculate the amount of money a typical lender will give you for your mobile home equity loan all you have to do is subtract the amount that is owed on your primary home mortgage from the value of the home based on current data and that is basically the amount of money lenders will allow you take out on a mobile home equity loan. Most experts suggest you keep the loan under eighty percent of your equity or else you will probably have to purchase private mortgage insurance. Be aware of all the details concerning the equity loan and not just the interest rate.
Lenders for Mobile Home Equity Loans
Not all mortgage lenders provide loans for mobile homes but there are lenders available if you own a mobile home. You can find them on the internet and make sure you get several loan offers before accepting a loan. Mountainside Financial is considered to be one of the leaders in the mobile home loan business. They provide a variety of loans for people who own mobile homes and they provide them in the majority of the states.
They provide mobile home equity loans for people who live on leased property such as in a mobile home park and they also provide loans for mobile homes located on property owned by the mobile home owner, however the land cannot be included in the loan and this restriction is typical of lenders who offer mobile home equity loans. Other sources for obtaining mobile home equity loans are BD Nationwide Mortgage and lendingtree.com. Unfortunately, the typical interest rate for a mobile home equity loan is higher than for a standard home. The banks and other lenders believe that the risk of default on these loans is significantly higher than on standard home equity loans.