Bad credit mobile home loans are dangerous for borrowers. They can more than just cripple your finances; they can destroy your credit for years to come. They often have fees that will add an even bigger strain on the monthly payment. The interest rate of the loan is sometimes the same as a credit card. Would buy a house on a credit card? If you’re response was an incredulous “no”, then mobile homes with bad credit is not an option for you.

Loan brokers often take advantage of those that are shopping for mobile homes and have bad credit. Because they’re given incentives to charge more interest on a loan, they often offer interest charges well over what the borrower qualifies for. In other words, if you have bad credit, they will offer a loan with 18% interest when you actually qualify for 12%-15% at another lender. It’s in their best interest to give you a higher interest rate.

Mobile home loans for bad credit borrowers are a nightmare to undertake. Firstly, their fees that would make most credit card. The interest rates are so high that it makes the monthly payments. The terms for which a borrower must adhere are basically a rip off. If you’re a borrower, mobile homes loans for people with bad credit are just not a good idea. They’ll cost you thousands of dollars in interest and may actually lower your credit rating in the long run.

Let’s take an example of a loan for an average mobile home amount. Mobile homes cost around $35,000-$75000 for just the mobile home, remember there is also the land (which is usually rented). For an average we’ll take a $50,000 at 15% interest, which is just an average of what a bad credit mobile loan borrower would get. Because of the bad credit history, a lender will usually require a minimum of 10%, but more likely a 20% down payment. Coming up with the 20% down payment of $10,000 is the least of the problems with an interest rate at 15%, and 15% is just an average. Depending on your credit score you could end up paying as much as 30% interest.

For a 10 year loan at $30,000 and 15% interest, expect to pay monthly about $480+. At the end of the loan period of 10 years, you’ll have paid approximately $28,000 in interest alone. Compare that to a normal rate of 5-7% and the interest would be $11,000. A bad credit loan is almost three times the amount of interest.
When it comes to taking a bad credit mobile home loan, the best thing to do is wait for a year and repair your credit. Spend the year getting a secured credit card and making payments to it. Get your debts consolidated and arranged for payment through a credit counseling service (be sure to use a reputable company). In the end you’ll save yourself nearly $10,000 by repairing your credit enough to get a 5% difference in the loan interest rate.

Similar Content:

  1. A Quick Bad Credit Loan Will Hurt Your Financial Future Bad credit spreads like the flu. It touches one part of your credit and catches onto every other part. It...
  2. The Difference Between Mobile Home Loans And Other Mortgages Some people are surprised to learn that there are differences between mobile home loans and regular mortgages. After all,...
  3. Terrible Idea – Getting A Home Equity Loan With Poor Credit Everyone has seen those ads promising a home equity loan with poor credit, and when you want to own your...
  4. Financial Suicide – Do A Mortgage Refinance With Bad Credit All over the Internet and television lenders are advising people to refinance their homes. There are even lenders that are...
  5. How to Get Bad Credit Loan Financing and Why You Shouldn’t Bad credit loans are relatively easy to get, most places actually advertise for bad credit borrowers. When lenders are unwilling...

Tags: , , ,
Share this post on: