Mobile homes have higher interest rates...also the amount of the loan is 50k....if it was over 200k then I could get 3%. Because I have a lot of money coming in next year from some investments I made, I could feasibly pay it off next year in one lump sum....but its better to go with a general loan in case I end up with some financial distress.
Its funny how everyone is yelling about the interest rate but is forgetting about the actual cost of the home itself. Its 50k for the home and I make about 70k a year. I'm not buying it for an investment, I'm buying it to reduce my cost of living, get homeowner credits, and put more money away in the bank.
Okay, so maybe I don't get it. You seem to have come up with a way to beat the system. Vince, I really do wish the best with all you endeavor accomplish. Please forgive me for pointing out that the standards where you seek to find financial success, go against the grain of everything that has proven to work in the past. I'll admit that my experience with stapled together, manufactured homes is lacking. Maybe I could have made a killing in real estate had I'd known what you seem to know. What I do know, is that like the story of the Three Lilttle Pigs; if you build a house of straw, it will get blown down by the big bad wolf (or in your case a hunky bear).
Have you considered that the reason the interest rate on these houses is so high is because they have no value now or ever? Mortgage lenders aren't as stupid as they might sometimes appear. Frankly, that you can even secure a loan on the cardboard shelter you aspire to, is somewhat amazing. As for the future, I sincerely hope you have money coming your way (or maybe not) since that cute little trailer you love is very unlikely to outlast the term of its mortgage.
In 2016 when I purchased a Mazda CX3, my bank offered me an interest rate of 1.3%. I paid a little under $30,000 for the car. What does this say about a 10.5 interest rate on a prefab home? Yes, my credit rating is well over 800 and banks clamor to have my business, but when all is said and done, the value of the product they are lending on is a big factor. Incidentally, considering depreciation and my old age, I might have been better off leasing the damn thing. We all make mistakes.
I like you. Maybe because of your ignorance in all things pertaining to financial investments, it is why I feel compelled to share my advice in these matters. The simple truth is that when something seems too good to be true, it is. Heck, maybe after 73 years hanging out in this world, I am actually senile and maybe you have the key to success. I wish you all the best.
I'm being serious here. I have no reason to wish you anything but the best. I wish the truth wasn't the so obvious truth in these matters....and will allow for the fact that anything is possible.
I think you have been sold a bill of goods. I don't believe this will turn out to be what you expect. It sickens me that the oppression of the less affluent, educated, intelligent and marginalized folks is so easily acquired.
My best to you in all that you hope to achieve.
On a side note, my annual income is not a heck of a lot higher than yours. One of the reasons I am able to live as well as I do is because I mostly made wise real estate and retirement investments. I am a working class guy with a retirement income that is only a little be more than your income. Maybe I got lucky, maybe I'm a little more experienced than you. It is your choice to ignore what I've said. Like I said I honestly wish you every success.
