No Cost Mobile Home Loans:

They are my favorite loans, simply because they are "no brainers." Even though no cost loans have a slightly higher interest...if we even lower your interest rate by as little as .5%, the savings in the payment each month & savings over the life of the loan can mean tens of thousands of dollars back in your pocket(or the way we look at it: put your own kid through college instead of a banker kid). In most cases, our no point / no fee manufactured home loans yield more than a full 1% reduction in rate.

To make the no closing cost mobile home loan work for you and your family, you must take into account the remaining years left on your current manufactured home mortgage. To realize maximum savings on a no point mobile home refinance, we must and will give you a shorter term with a lower rate....and thus the term "No Brainer." The beauty of the manufactured lending industry is the shorter the term you choose the lower the interest rate we are able to offer you.

If you have no closing costs and you lower your mobile home loan rate with a "no cost" refi, how could you lose? The "no cost" refinance is the only sure winner as it costs the borrower nothing, no matter how soon the loan is paid off. And next time rates go any lower, you do it again! Because of the smaller loan balances manufactured home loans on average  take over 2 years to recover closing costs and points.

We cam provide a spreadsheet to our clients comparing the existing loan to a 1.5 point loan, a no point loan and a "no cost" loan. The calculation is rather simple.

Example:

1. Deduct the new interest only payment from the existing interest only payment to calculate your monthly savings. ($50)
2. Add all closing costs and points ($2,500)
3. Divide the total cost by the savings ($2,500/$50)
4. The result is the number of months to recover the closing costs. (50)

Now you know it will take 4 years until the refinance starts to pay off.

That's a long time, a lot can happen in 4 years:

• Rates could go even lower.
• Maybe you sell the property.
• Maybe you need cash and decide to refinance.
• Maybe your property burns, floods, blows or quakes away.

Unless you keep our sample loan for at least 4 year, you just gave away your money and you're not going to get a penny back. You could add these same $2,500 to your favorite investments. Of course, if you are SURE that you are going to keep the loan substantially longer and rates are at the all time low, get the lowest rate you can afford. Calculate your closing costs and recovery period at the time you lock. Us our mortgage tools page to do some calculations for yourself.                      

Where will Rates go?

We don't predict rates and we don't rely on anyone else's predictions.

In February 1994 the CA Association of Mortgage Bankers predicted rates would go even lower, to the 5%-6% range in 1994. That didn't happen and rates went up instead. Sometimes financial gurus are correct, as rates can only go up or down. If they really knew where rates are going, they would trade bonds and retire. What we can tell you is rates are between 30 and 40 year lows...now seems like a good time

At this  MarketWatch page you will find some of the many reasons why rates always change.