Benefits of Mobile Home Loans

Mobile home loans are not value assessed based on their location, since the location can change. Because mobile homes are similar to car loans, they will have many of the same benefits to this type of asset-based loan.

Secured Loans are Cheaper

Mobile home loans are typically asset-based loans, which mean they are secured against collateral. Similar to a car loan, the collateral that is used is often the mobile home itself. This means the lender will hold the title to the mobile home until the loan is paid off. When a lender can use collateral like this, the risk of the loan is split between the lender and the borrower. Loans presenting less risk to the lender are cheaper for the borrower. Your loan rates will be lower through a secured loan as opposed to using just a personal loan to finance the purchase. Further, you can often tie insurance for the loan in with your mobile home insurance, making that less expensive. 

Installment Loans Build Credit

Your credit score is a measure of a number of financial factors. Of course it is important to take out loans and pay them off in time. It is also important, though, to take out a variety of different types of loans. Revolving loans, like credit cards, are very flexible for the borrower. They do not often build up a borrower's credit as much as installment loans.

Installment loans are made in one lump sum, called the principal, which is paid back in set monthly fees, or installments. Every borrower should show a balance of revolving and installment credit on a credit report. Even if you have never missed a payment on your debt, you may not have great credit unless you have successfully taken and paid off installment loans.

Accumulating Assets Builds Wealth

It is important to build personal wealth to protect yourself in case of a financial emergency. Your wealth is also what sustains you when it is time for you to retire and stop making a salary. For most people, the largest asset they will own in their lifetime is a home. Even those persons who will never own a permanent home can build their wealth by owning a mobile home. Mobile homes are very expensive, secure assets. They are certainly larger assets than automobiles alone.

Once you own your mobile home outright, you can also sell it and start building the wealth even more. The sale value of the mobile home should be enough for the down payment on most modest mortgages. Further, since you have paid off one large mobile home loan, you will have built your credit over the years you had this loan. Getting a mortgage and continuing to build your wealth by purchasing a permanent home will further provide for your future financial security.

Improve Your Credit Score - Free Consultation