Posted on: 05th May, 2010 09:19 am
Our interest rate is currently 8.25% on an adjustable 30 year mortgage. I have the option of changing this to a fixed rate, but with our lender it would then go up to 12.25%. Why is this? Why not the average prime rate of 4-4.24% that is out there now for mortgages on other homes?
Manufactured homes have had a bad name since the first one was ever built. It's taken a long time for them to be accepted at all by many lenders, and that'll likely never change for some. Most mobile homes are considered as personal property and not as real estate, which is considered higher-risk lending. Interest rates will always be higher for higher risk, whether it's due to borrowers or the property itself. In that risk analysis, one of the major things that sticks out is the case in which a lender has to take back a property.
Selling a foreclosed/repossessed manufactured home is one of the most difficult things to do in lending. The overwhelming majority of people in this country consider stick-built properties to be worthy of consideration for a home, but the thinking about manufactured housing is not the same.
You ought to be able to shop around and obtain a better rate than 12% plus, but I can't honestly say I know where you'd look. It's worth the trouble, of course.
Selling a foreclosed/repossessed manufactured home is one of the most difficult things to do in lending. The overwhelming majority of people in this country consider stick-built properties to be worthy of consideration for a home, but the thinking about manufactured housing is not the same.
You ought to be able to shop around and obtain a better rate than 12% plus, but I can't honestly say I know where you'd look. It's worth the trouble, of course.