How to Refinance a Modular Home

Many homeowners choose to refinance their modular home when interest rates on mortgage loans fall. Refinancing a loan to a lower rate will save the homeowner money on the mortgage finance charges. It is also possible for the homeowner to get cash from a refinance if sufficient equity in the modular home exists.

1. Call your current modular home lender and ask to speak with a loan officer. Tell the loan officer that you want to refinance your existing modular home mortgage. Ask the officer to send you a refinance package, or stop by and pick one up. If you decide to refinance with a new lender, meet with a loan officer to discuss the new loan structure.


2. Fill out the mortgage refinance loan application with the lender that you choose. Read through the instructions to see what information you need to give to the lender. Most lenders require two years of income tax returns, a current pay stub from your employer and a recent bank account statement.


3. Return the application package to the loan officer. Find out if there is any other information the loan officer needs in order to process your refinance request. Ask when you can expect to receive a call on your application.


4. Contact the loan officer if you do not receive an approval by the date you were told to expect a call. If your refinance request goes through, set up a time to sign the loan paperwork. Make sure to take your co-applicant with you to the loan closing, if applicable.


5. Go to the loan closing and read through the refinance paperwork before you sign the documents. Ask the loan officer any questions that you have about the mortgage structure. Find out when your new monthly payment is due and arrange your budget to allow for the change in the due date, if necessary.