Refinance your mobile home to consolidate your debt by cashing out on your equity on the mobile home and using the money to pay high-interest loans, explains Cascade. You can refinance your mobile or manufactured home at a lower interest rate and consolidate all your debts to reduce your debt load.
If you have a good credit score, refinancing your mobile home can reduce interest rates and help you save some cash, reports MortgageLoan.com. You can borrow against the equity you have on your home and reduce the payment term to clear your mobile home payments faster without increasing your monthly payments.
If you have other high-interest loans such as credit card loans and car loans, you can refinance your mobile home at a better interest rate and use the money to pay off all these loans, according to Cascade. You need to find a company that is willing to refinance mobile homes, notes ESLIntl.com. Most financial institutions refuse to refinance these homes due to the high rate of foreclosures compared to other types of homes, making mobile homes higher risk properties.
Most lenders insist you have a good to excellent credit score to refinance your mobile home to consolidate your debt, reports ESLIntl.com. Lenders also prefer situations where you own the mobile home and have a title to the land it is on, as opposed to situations where you lease the land or live in a trailer park, according to MortgageLoan.com.