A mobile home equity line of credit uses a certain percentage of your mobile home’s equity to provide you with a revolving line of credit for large expenses. Maybe you need a new roof on your mobile home or are having major plumbing issues. Instead of a set dollar amount, a mobile home equity line of credit lets you borrow up to a certain amount, typically 75%–85% of your mobile home’s value.
You can take a mobile home equity line of credit out on a mobile home that has a the title in your name. A mobile home equity line of credit often times has a lower interest rate than other types of loans, such as home equity loans, and the interest may be tax deductible.
How Does a Mobile Home Equity Line of Credit Work?
A mobile home equity line of credit works like a credit card, in that you are allowed to borrow up to a certain amount for the life of the loan, carry a balance from one month to the next and make minimum monthly payments to pay off the loan.
Although a mobile home equity line of credit gives you ongoing access to your mobile home’s equity, credit bureaus don’t always treat it the same as your credit card accounts when it comes to your credit score. Some bureaus treat mobile home equity lines of credit, or known as a MHELOC, like installment loans rather than revolving lines of credit. So, in the long run, borrowing 100% of your mobile home equity line of credit limit may not have the same detrimental effect as hitting your maxing out your credit card limit.
Mobile Home Title Loans offers short term loans with no pre-payment penalties and fixed rates as well as low monthly payments. There is a quick turnaround for the loans, an easy approval rate in addition to offers no upfront cost for good credit and even bad credit. Mobile Home Title Loans can help anyone with any year mobile home inside a mobile home park with a value up to $30,000.
Unlike home equity loans, mobile home equity lines of credit have variable interest rates, meaning your rate could fluctuate based on the Fed’s Prime benchmark interest rate. If the index rises, so will your rate, although most mobile home equity lines of credit set a cap on how high rates can go over the life of the loan.
How much you can borrow on a mobile home equity line of credit depends on the value of your mobile home, how much you owe your credit history and other factors. There are online calculators to help you estimate how much you may be able to borrow. Call Mobile Home Title Loans today to go over any additional questions you may have. Start your online application for your mobile home equity line of credit, today!