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Why Buy Mobile Homes?
Bad Credit Credit Creditres One of the advantages is fast equity buiding. You see, the myth about mobile homes depreciating is only half true. In parks they generally go down in value over time. Buy mobile homes on land, though, and they'll usually go up in value.
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Bad Consolidation Credit Debt Buy Mobile Homes With Real Estate
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Bad Company Credit Repair My first home was a mobile, and it doubled in value in the twelve years I lived in it. The home deteriorated a little (don't all houses?), but the value of the land rose. With a lower price than a "stick-built house, the mortgage payments were lower. Because of the shortened amortization (seven years), and lower loan amount, I built equity fast.
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Bad Card Credit Credit Buy Mobile Homes To Build Equity Fast
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Bad Car Credit Loan A house with a $100,000, 6%, 30-year mortgage loan gives you a payment of $599.60. $500 of the first payment will go to interest, $99.60 to principal. You built equity of $99.60 (I'm ignoring appreciation for the moment).
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Bad Credit Loan Mortgage A mobile home on land, with a $30,000, 8%, 10-year mortgage gives you a payment of $363.99. The higher interest rate is normal with mobiles. The shorter term is normal too, so you'll own the home free-and-clear in 10 years instead of 30. The first month, $200 will go to interest, meaning $163.99 goes to principal. You built more equity in this scenario.
Auto Bad Credit Loan A mobile home on land might appreciate more slowly than a "regular" house, but faster loan pay-down probably may cover this factor. Now, if you also chose to bank the difference in payments ($235.61 per month), you'd definitely be better off financially with the mobile home versus the more expensive home (Except during times of fast appreciation).
Bad Credit Mortgage Refinance You can pay less per month and build more equity. Your real estate agent won't tell you this, and don't expect him to agree even after you explain it. Math skills aren't part of the licensing requirements (at least they weren't when I sold real estate).
Bad Credit Refinance Other Advantages
Bad Credit Mortgage Second You can do what you like with the home when you own the land. I rented rooms in my home, and took in more money than it originally cost.
Bad Credit Loan Student Mobiles are cheap to maintain. I once had a furnace die in a mobile home I owned as a rental.This is about the most expensive repair you'll have in a mobile. I replaced it for $1,200, which is much less than a furnace for a larger home. For $200 you can tar the roof, or $30 if you do it yourself, instead of $5,000 to re-shingle a traditional roof. Windows, plumbing, and doors are all cheaper.
Bad Card Credit Property taxes, because they're based on value, cost less. Insurance is less because you're insuring less value. Just be sure you can get insurance before you buy. Some old mobiles may be uninsurable in some areas.
Bad Credit Financing I wouldn't buy a mobile home if house prices for houses are just as low in the area. We bought a house near Butte, Montana for $17,500 - less than mobile homes for sale there (See a photo on our site).
Bad Credit Home Loan Mortgage Will your own needs and predjudices let you be comfortable in a mobile home? It's something to consider. They may be in areas you don't want to live (true of houses as well). These are personal things you have to consider.
Bad Credit Loan People Why buy mobile homes? The advantages are clear for young people starting out, who may have no other options. It may also be your better option, when you consider the lower price, the simpler, cheaper maintainance, lower monthly payments, low property taxes, lower insurance costs, and faster equity build-up. Why not buy mobile homes?
Bad Card Credit Credit People Steve Gillman wrote the book: Cheap Homes - How To Save Thousands Buying Your Next House. To learn more about mobile homes and other housing alternatives, and to see a photo of the beautiful home he and his wife bought for $17,500, visit http://www.YourCheapHome.com
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