refinace yes or no

[sonboy36]

hello.i live in a 1998 28x60 dble wide in which we bought new.On a land /home finace we borrowed $55,000 @ 10% interest which put our payments@ $500 a month for 20 yrs(i think thats right) we now owe around $44,000.we was going 2 sell the house and build a house on our land but since the economy has taken a nose-dive,we are scared to build a house so we have decided to instead remodel our dbl wide.my question is this:what options do i have?doing what we want to remodel will cost roughly around $10,000.should we fiance $54k and try 2 get a lower interest rate and possibly a lower payment or just borrow the money separate from the house or what would y'all recommend?any suggestion will be deeply appreciated.

[Arlo]

It depends on your credit but they are offering 5.6% 30 year mortgages where I live. Personally my goal is to pay off my mortgage way before retirement. 15 0r 20 year mortgages will have even lower rates. If you are paying 10% now you should be able to get a lower rate even with borrowing 10k more. If you are planning to stay in your home for at least three years I would refinance. It costs you nothing to find out. Sometimes your present mortgage company will give you a good refi rate. Just stay away from variable rate mortgages!

[Harry]

Hi

I tell my kids "never a borrower or a lender be"....but they don't listen.

If you have to have a mortgage I suppose shopping for a lower monthly payment is a "no-brainer". Try to get a loan without a prepayment penalty. Also don't forget the closing costs. For example: if refinancing your home will save you $50 per month on your mortgage, but the closing costs come to $4,000, it will take 80 months, or over six years, to recover the cost of refinancing.

Just my thoughts.

Harry

[texasprairierose]

I don't know what state you live in, but in Texas where I live, it is extremely difficult to refinance a mobile home. We bought ours in 1992 and our interest rate was 8.25%; when interest rates were at their lowest a few years back, we decided to take advantage of them. We called over 20 lending institutions and were refused by all of them once they heard the word "mobile home".

Also, I agree with Harry in regards to the closing costs; weigh how long it will take you to recoup them.

Diane

[Yanita]

Hi,

Although the info is good that you have gotten already you used a phrase in the beginning of your post "land/home", you also bought it new.

If you purchased this as a land/home package through a MH dealership I would consider the refi. Most of those lenders sell your mortgage every few years.

If your home is brick/block skirted and considered "real" property then you should be able to refi without to many headaches.

Yanita

[Greg]

Personally, If you can afford to, I would pay for the remodel as you go. As you said the economy is heading south in a hurry and the last thing you really want is more debt. Greg