How to Refinance a Mobile Home Mortgage

Properly maintained mobile homes in the right locations can appreciate in value.

Properly maintained mobile homes in the right locations can appreciate in value.

If you initially financed your mobile home through a personal property loan, you might want to refinance the loan to a lower interest rate as a way to lower your payments. Refinancing your mobile home mortgage can save you thousands of dollars over the term of the new loan, depending on how much interest rates have decreased since you initially bought the home. Like refinance loans on traditional homes, a lender will need to take a look at your assets, liabilities and credit score.

Work on raising your credit score, especially if it’s below 640. You can qualify for a lower interest rate by paying your bills on time and paying down any credit card debts you owe.

Get an appraisal to determine the value of your home. Your lender will want to know what your mobile home is worth before approving a refinance loan. Some lenders will accept a market value estimate, or how much your mobile home would sell for, instead of a full appraisal of your mobile home. A market value estimate takes into account the total square footage of your mobile home as well as the prices that similar mobile homes in the same area have recently sold for.

Use the equity in your mobile home as collateral to secure a refinance loan. The more principal you’ve paid down on your original loan, the more equity you’ve built in your home.

Compare rates from several lenders. Decide on the loan amount and term you want and then check out the interest rate, bank fees and closing costs that each lender charges.

Find a lender that will refinance your loan if both your mobile home and the land it sits on are included in the same loan. Some lenders only offer refinance programs for mobile homes located on leased property or land you already own.

Get your paperwork in order before applying for a refinance loan. Lenders usually request to see your tax returns and W-2 forms from the past two years, at least two recent pay stubs and your two latest bank statements as proof of income.

Decide the term of the loan. One option, if you can afford the payments, is to refinance your loan to a shorter term. You can pay off the loan faster and pay less in interest over the length of the loan. Taking out a shorter-term loan will also get you a lower interest rate and allow you to build equity in your home faster.

Get an approval letter that locks in the interest rate the lender quotes you. The letter should stipulate for how long you can lock in the rate.

Request a breakdown of all the closing costs you are responsible for paying. Talk to your lender to find out if any of the closing costs can be included in your new loan. However, you will pay a higher interest rate if you choose this option.


  • Another way to find out how much your mobile home is worth is to go online and request the National Automobile Dealers Association book value of your mobile home.

About the Author

Amber Keefer has more than 25 years of experience working in the fields of human services and health care administration. Writing professionally since 1997, she has written articles covering business and finance, health, fitness, parenting and senior living issues for both print and online publications. Keefer holds a B.A. from Bloomsburg University of Pennsylvania and an M.B.A. in health care management from Baker College.

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