Exploring The Pros And Cons Of Mobile Homes

Exploring The Pros And Cons Of Mobile Homes


Are you tired of living in a cookie-cutter house like every other property on the block? Do you dream of an affordable, customizable home that can be taken wherever you go? Look no further than mobile homes!

Find more about it in Jennifer’s episode on the Icons of Real Estate Podcast!

Mobile homes have become a popular housing option for many people across the United States. They offer an affordable and flexible way of owning a home without breaking the bank. However, like any other housing option, mobile homes offer both benefits and drawbacks. So, it's important to explore the pros and cons of mobile homes before you decide to buy one.

So, buckle up and get ready to explore the exciting world of mobile homes. We'll take a look at the pros and cons of mobile homes and help you decide if it's the right choice for you.

What Are Mobile Homes

Mobile homes, also known as manufactured homes, are a type of housing that has been around for decades. They are built in factories and transported to their final location, where they are set up and can be lived in just like traditional houses.

They are typically much less expensive than traditional homes. In addition, they can be a great option for those looking for an affordable housing solution. Moreover, mobile homes are typically smaller than traditional homes. They are often found in parks or communities that are designed specifically for mobile homes.

Mobile homes are typically constructed with a steel frame and a wood or vinyl exterior. The interior of the home can be customized with a variety of options, such as appliances, flooring, and fixtures.

Mobile homes can also be a great option for those looking to live in a more rural area, as they can often be found in areas that are not serviced by traditional housing. Additionally, mobile homes can be a great option for those looking to downsize or for those who are looking for a more affordable housing solution.

Pros Of Owning A Mobile Home

Mobile homes have become an increasingly popular housing option for many people in recent years. Offering a unique blend of affordability, flexibility, and convenience, they have become a go-to option for those looking to own a home without breaking the bank.

Here are some key pros of owning a mobile home:

Affordability

One of the most significant advantages of mobile homes is their affordability. Compared to traditional homes, mobile homes are much cheaper and more accessible for many people.

In fact, the average cost of a new mobile home is around $57,700 in 2020, while the average cost of a traditional home is around $300,000. This means that mobile homes are a more affordable housing option for those who are looking to own a home without breaking the bank.

The Flexibility of Mobility

Another advantage of mobile homes is their flexibility. Unlike traditional homes that are permanently fixed to a foundation, mobile homes can be moved from one location to another. So, homeowners have the freedom to move around and explore different areas without selling their homes and purchasing new ones. This can be particularly advantageous for those who frequently relocate for work or other reasons.

Additionally, mobile homes can be placed in a variety of locations, including private land, mobile home parks, and even on the owner's property.

Easier Maintenance

One of the main advantages of mobile homes is their lower maintenance requirements. Compared to traditional homes, mobile homes are much easier to maintain, saving homeowners time and money in the long run. This is due in part to their smaller size, which means there is less space to clean and maintain.

Energy-Efficient

Mobile homes also offer a more sustainable way of living. With the increasing focus on environmental sustainability, mobile homes have become a popular option for those looking to reduce their carbon footprint. Many mobile homes are built with energy-efficient materials and appliances, which can help homeowners save money on their energy bills and reduce their impact on the environment.

Cons Of Owning A Mobile Home

Mobile homes are often praised for their affordability and customizability. Still, they also come with a set of drawbacks that potential buyers should consider before making a purchase.

Here are some of the downsides to mobile home ownership:

Durability

Another issue with mobile homes is their durability. While some mobile homes are built to last, others are constructed with cheaper materials that may not withstand extreme weather conditions or natural disasters. This can lead to costly repairs, which can add up over time. Additionally, mobile homes that are not properly maintained may develop issues with mold, pest infestations, and other environmental hazards.

Limited Financing Options

Limited financing options for mobile homes are another challenge that homeowners may face. Because mobile homes are considered a riskier investment than traditional homes, lenders may hesitate to provide financing options for these properties. This can make it difficult for potential buyers to secure a loan for a mobile home, which can limit their options for purchasing a property.

Lack Of Community Amenities

Finally, mobile homes may lack community amenities typically found in traditional homes or apartment complexes. For example, a mobile home park may not have a pool, gym, or clubhouse, which can limit residents' access to recreational facilities. Additionally, mobile home parks may not have the same level of security or maintenance services as traditional homes or apartment complexes, which can make residents feel less safe and secure.

Lower Resale Value

One of the most significant drawbacks of owning a mobile home is its lower resale value. While traditional homes tend to appreciate in value over time, mobile homes depreciate. This is because mobile homes are often considered temporary living solutions, and their construction quality and materials are not as durable as those used in traditional homes. As a result, potential buyers may be hesitant to invest in a mobile home, which can make it difficult to sell the property down the line.

Sell Your Property Like A Pro

The field of selling residential and commercial real estate investments can be daunting, but with the right strategies and techniques, you can sell your property like a pro.

Here are some tips on how to effectively sell your property:

Price It Right

The price of your property is one of the most crucial factors when it comes to selling it. You need to set a realistic price that is in line with the current market conditions. Overpricing your property can make it difficult to sell while underpricing it can make you lose money. Research the market and consult with a real estate agent to help you set the right price.

Leverage On SEO

Firstly, effective SEO strategies for real estate are a must in today's digital age. The majority of buyers start their search for a property online, and by applying SEO techniques to your property listing, you can improve your chances of being found by potential buyers. Some effective SEO strategies for real estate include using relevant keywords in your property description, optimizing your images with alt tags, and making sure your website is mobile-friendly.

Stage Your Property

Staging your property involves preparing it for sale by making it look its best. This involves decluttering, cleaning, and making repairs where necessary. You can also add some finishing touches, like fresh paint, new curtains, and flowers, to make the property more attractive to potential buyers.

Market Your Property Effectively

Marketing your property effectively is key to attracting potential buyers. Some real estate listing promotion ideas can help get your property in front of the right audience. One effective way to promote your listing is by using social media platforms such as Facebook, Instagram, and Twitter. You can create eye-catching posts with high-quality images and engaging descriptions to attract potential buyers.

Work With A Trusted Real Estate Agent

A real estate agent can help you navigate the complex process of selling your property. They have the knowledge, expertise, and resources to help you sell your property quickly and at the right price.

Working with a trusted real estate agent like Jennifer Okhovat can make all the difference when it comes to selling your property like a pro. Her knowledge, experience, and integrity have earned her a reputation as one of the top agents in the industry. She can provide expert guidance throughout the sales process, negotiate on your behalf, and protect your interests.


Is A Mobile Home Right For You?

Owning a mobile home can be a great option for those looking for affordable and flexible housing. They offer a sense of independence and the ability to own a home without breaking the bank. However, they also come with challenges, such as potential depreciation and difficulty obtaining financing. It is important to weigh the pros and cons of owning a mobile home before deciding.

A real estate agent can help you navigate the challenges of owning a mobile home and ensure your interests are protected. If you plan on buying or selling a mobile home, working with an agent specializing in this niche market is always the best.

Ultimately, the decision to own a mobile home should be based on your circumstances, financial situation, and long-term goals. With careful consideration, you can make the right choice and enjoy the benefits of owning a mobile home.




Top 10 Qualities of a Good Real Estate Agent

Check out the recent Redfin article I was featured in:

Top 10 Qualities of a Good Real Estate Agent | Redfin

Whether you’re a first-time homebuyer or a seasoned seller, the process of buying or selling a home is challenging, and sometimes stressful. The good news is you don’t have to do it alone. With the right agent by your side, the homebuying journey - from house hunting to signing the contract - can be thrilling. After all, you want to work with a professional who advocates on your behalf, sells your home for top dollar, or helps you find the perfect home for the best price. But what makes a good agent? A good real estate professional is someone who is personable, knowledgeable, trustworthy, and has the resources and tools to get the job done.


So, what qualities should you look for in a good real estate agent? Sometimes finding the perfect match is more difficult than anticipated. To guide buyers and sellers on the path towards working with the right real estate agent, Redfin asked us and other top Partner Agents to share our expertise and weigh in on the top qualities to look for in a real estate agent. Check out what we had to say!

Current Mortgage Rates Stick Below 3% For a Third Week

Current Mortgage Rates Stick Below 3% For a Third Week

BY LESLIE COOK

MAY 6, 2021

Money; Getty Images

The current average rate for a 30-year fixed-rate mortgage slid to 2.96% with 0.6 discount points paid this week, according to Freddie Mac’s benchmark Primary Mortgage Survey.

The 0.02 percentage points drop, marks the third week in a row where Freddie Mac’s rate has been below 3%. A year ago, the average rate for a 30-year fixed-rate mortgage was 3.26%.

Lower mortgage rates are good news for well-qualified buyers during the spring buying season. Lower rates increase how much home buyers can afford, helping offset increasing home prices. Homeowners can also take advantage of lower rates to refinance their home loans.

“Consumer income and spending are picking up, which is leading to an acceleration in economic growth,” said Sam Khater, chief economist at Freddie Mac. “The combination of low and stable rates, coupled with an improving economy, is good for homebuyers.”

Adding, “It’s also good for homeowners who may have missed prior opportunities to refinance and increase their monthly cash flow.”

  • The average rate for a 15-year fixed-rate mortgage decreased by 0.01 percentage points to 2.3% with 0.6 points paid. A year ago, the 15-year rate was 2.73%.

  • The rate on a 5-year adjustable-rate mortgage increased by 0.06 percentage points to 2.70% with 0.3 points paid. A year ago, the 5/1 ARM rate was 3.14%.

Mortgage Rate Trends

Money

How long can sub-3% mortgage rates last?

Rates have been below 3% for the past three weeks. Yields on the 10-year Treasuries — which tend to influence mortgage rate movements — have been fairly stable. While there has been positive economic news and several states have relaxed COVID-19 restrictions and announced plans to re-open more sectors of the economy, rates seem to be in a holding pattern.

That pattern may change, however, if upcoming economic reports bring positive news.

“This period of relative calm will be put to the test in the coming days,” said Matthew Speakman, economist at Zillow. “April employment figures and inflation data, two key gauges of the economy’s path forward, are due this week, and stronger-than-expected readings of either — or both — reports will likely revert mortgage rates back upward.”

On Thursday, the yield on the 10-year Treasury note opened at 1.58%, down from Wednesday’s close of 1.584%. There tends to be a spread of about 1.8 percentage points between the 10-year Treasury and average mortgage rates.

At the start of the coronavirus pandemic last year, yields dropped below the 1% mark for the first time ever. Treasury yields have moved higher since then, but held at low levels with the Federal Reserve repeatedly indicating that it expects to keep the short-term Federal Funds rate near zero through 2022 or longer.

Are people still taking out mortgages?

Even though rates have been lower than they were earlier in the year, mortgage loan activity is slowing down. The total number of loan applications ticked down for the week ending April 30, decreasing by 0.9% week-over-week, according to the Mortgage Bankers Association.

The number of purchase loan applications was down 3% from the previous week but was 24% higher than the same week last year.

“Both conventional and government purchase applications declined, but average loan sizes increased for each loan type,” said Joel Kan, associate vice president of economic and industry forecasting for the MBA. “This is a sign that the competitive purchase market, driven by low housing inventory and high demand, is pushing prices higher and weighing down on activity.”

Are people still refinancing their mortgages?

Lower interest rates did lure slightly more homeowners to refinance. The number of applications for refinances ticked up by 0.1%. Compared to the same week last year, however, refi applications were down by 17%. Refinance loans made up 61% of all mortgage loan activity.

Why your mortgage rate may be higher than current mortgage rates

Not all applicants will receive the very best rates when taking out a mortgage or refinancing. Credit scores, loan term, interest rate types (fixed or adjustable), down payment size, home location, and the loan size will affect mortgage rates offered to individual home shoppers.

Rates also vary between mortgage lenders. It’s estimated that about half of all buyers only look at one lender, primarily because they tend to trust referrals from their realtors. Yet this means that they may miss out on a lower rate elsewhere.

Last year, Freddie Mac reported that buyers who got offers from five different lenders averaged 0.17 percentage points lower on their interest rate than those who didn’t get multiple quotes. If you want to find the best rate and term for your loan, it makes sense to shop around first.

Today’s mortgage rates and your monthly payment

More than other factors, your annual percentage rate on your real estate purchase will affect your monthly payments — whether you’re refinancing or buying a new home.

On a $200,000 home loan with a fixed rate for 30 years:

  • At 3% interest rate = $843 in monthly payments (not including taxes, insurance, or HOA fees)

  • At 4% interest rate = $955 in monthly payments (not including taxes, insurance, or HOA fees)

  • At 6% interest rate = $1,199 in monthly payments (not including taxes, insurance, or HOA fees)

  • At 8% interest rate = $1,468 in monthly payments (not including taxes, insurance, or HOA fees)

Refinancing to a lower interest rate could save hundreds of dollars a month if you kept the same loan terms. Shortening the loan term could negate your monthly savings but save thousands over the life of the loan. You can experiment with a mortgage calculator to find out how much a lower rate could save you.

Other factors besides interest affect how much you’ll pay in mortgage payments:

  • Mortgage Insurance: Mortgage insurance costs up to 1% of your home loan’s value to your payment each year. Borrowers with conventional loans can avoid private mortgage insurance by making a 20% down payment or reaching 20% home equity. FHA borrowers pay a mortgage insurance premium throughout the life of the loan.

  • Closing Costs: Some buyers finance their new home’s closing costs into the loan, which adds to debt and increases monthly payments.

  • Loan Term: Choosing a 15-year mortgage instead of a 30-year mortgage will increase monthly mortgage payments but reduce the amount of interest paid throughout the life of the loan.

  • Fixed vs. ARM: An adjustable-rate mortgage’s monthly payment could change from year to year after the loan’s introductory period expires. A fixed-rate loan’s payments remain the same throughout the life of the loan.

  • Taxes, HOA Fees, Insurance: A monthly mortgage payment could also include homeowners insurance premiums, city or county property taxes, and Homeowners Association fees. Check with your real estate agent to find out how much they would add to your payments.

Will current mortgage rates save you money if you refinance?

You should consider refinancing your home loan if your current mortgage rate exceeds today’s mortgage rates by more than one percentage point. Mortgage refinance fees and closing costs would cut into your savings. You also have to consider whether your credit score would qualify you for today’s best refinance rates.

Many online lenders can give you free rate quotes to help you decide whether the money you’d save in interest charges justifies the cost of a new loan. Try to get a quote with a soft credit check which won’t hurt your credit score.

You could enhance interest savings by going with a shorter loan term such as a 15-year mortgage. Your payments may be higher, but you could save thousands in interest charges over time, and you’d pay off your house sooner.

Should you buy mortgage points?

Many lenders sell mortgage points (also known as discount points). Buying points means you’d pay more up front to lower your mortgage rate which could save you money long-term. A mortgage discount point normally costs 1% of your loan amount and could shave 0.25% off your interest rate.

With a $200,000 mortgage loan, a point would cost $2,000. Buying two points would cost $4,000 which would be due, in cash, when you close the loan. These two discount points would translate into a 0.5% reduction to your interest rate.

Discount points could pay off but only if you keep the home loan long enough. Selling the home or refinancing the mortgage within a couple of years would short circuit the discount point strategy. But if you stayed in the loan indefinitely, you’d reach a break-even point after which the discount points would save you more and more over time.

Often, spending cash on a down payment instead of discount points saves more unless you know for sure you’re keeping the loan for years. If a larger down payment could help you avoid paying PMI premiums, put the money toward your down payment instead of discount points.

How to find the best mortgage lender

The best mortgage lender for you will be the one the can give you the lowest rate and the terms you want. Your local bank or credit union probably writes mortgage loans with rates close to the current national average. A loan officer in your local branch could guide you through the process.

Online lenders have expanded their market share over the past decade. You could get pre-approved within minutes. Your loan amount combined with current mortgage rates could define your price range for home prices in your area. Many online lenders also assign a dedicated loan officer to offer continuity as you shop.

Shop around to compare rates and terms, and make sure your lender has the loan option you need. Not all lenders write USDA-backed mortgages or VA loans, for example. If you’re not sure about a lender’s veracity, ask for its NMLS number and search for online reviews.

What type of mortgage do you need?

First-time homebuyers can walk into a mortgage brokerage office or visit an online lender without knowing what kind of mortgage they need. But it’s always better to have an idea of what you’re shopping for, especially since you can’t control other factors such as home prices and current rates.

Mortgage loan types include:

  • Conventional Borrowing: Shoppers with higher credit scores and higher down payments can get a conventional mortgage with either a fixed or adjustable rate. Mortgage interest rates can be low for qualified buyers.

  • Subsidized Borrowing: The Federal Housing Administration and the U.S. Department of Agriculture help first-time homebuyers and shoppers in low-income areas buy homes by subsidizing their mortgage loans. FHA and USDA loans allow shoppers with lower credit profiles (a FICO score of 580) to still get affordable home financing. Subsidized loan restrictions include borrowing maximums and safe housing inspections. These loans are for single-family homes in most cases.

  • Veterans Affairs Loans: Veterans and active-duty service members can buy homes with no down payment and no PMI through the Department of Veterans Affairs’ lending program. Banks make loans that are guaranteed by the VA. VA loans require a funding fee that could range from 1.4% to 3.64% for first-time homebuyers.

  • Jumbo Loans: Homes in high-value housing markets like San Francisco and New York City may not fit within a conventional or FHA loan. Jumbo loans can help because they exceed the conforming loan limits of Fannie Mae and Freddie Mac.