Using a mobile home loan calculator will help you to figure out exactly what your loan payments will be. By simply putting in the loan amount, interest and length of the loan you will be able to figure out the total payment due each month for your loan. Try out the calculator below to figure out your payments
Mobile Home Loan Calculator
These calculators can be used to figure out what you will pay the bank each month for your mobile home. This calculation will also work if you are using a land contract. Again, just put in the amount due, rate, any down payment and your future payment will calculate.
Mortgage Loan Calculator
Mortgage loan calculators are important when you are planning and trying to figure out a budget to stay within. This calculator will help you do just that.
Most loaning departments will approve you for 25% of your income towards the loan payment. See figures below:
Let’s say you make $50,000 a year – Divide that by 12 = $4166.00 / per month
So, you make $4166.00 roughly per month – Now times that by 25% = $1041.00
This would be a rough idea of what payment you could afford per month for your mobile home.
TIP: If you do owe other payments such as auto, credit cards and other expenses those will also factor into your loan approval process. If possible, pay off any large credit card debt. I would not recommend closing the cards just paying the balances off or down.
Mortgage Down Payment
Saving a larger down payment before you purchase the mobile home will also help. Put different numbers into the calculator its amazing what just a few thousand dollars extra down will do to your payment over the length of the loan. It will also save you thousands on interest as well.
Once you have a mobile home loan, paying more on the payment does not lower your monthly payment. You typically must refinance to lower your monthly payment after you have committed to the loan.
So, if you have extra funds be sure to use those towards your down payment.
Adjustable Rates Vs. Fixed Rates
When securing a mobile home loan be sure that you have a fixed rate on your mortgage. An adjustable rate can change rapidly. See example below:
Let’s say you secure a 3% loan over 30 years for $70,000 that has an adjustable rate.
You can easily afford the $295 per month but then the bank changes your rate to 5% without any warning. Your $295 just went up nearly $100 to $376 per month.
Bank Rate Hikes
The problem is the increases might not stop there. These interest rates can continue to climb and put you into financial hardship quickly. Don’t let this happen, be sure to lock in with a fixed rate even if you must come up with more of a down payment to make the payment and rate work for you.
Mobile Home Insurance and Taxes
Another thing to remember is a mobile home has taxes and you will need to insurance your investment. These can add hundreds of dollars alone to your loan payment. Learn more about affordable mobile home insurance here.