So let me set the scene here:

Wife and I bought some land 4 years ago and have just been full time RVing out there. Its been nice but we are done being cramped. With covid, then the cost of materials being ridiculous, we have put of building but are to the point we just cant stand it. Honestly, I've been waiting for the economy to crash again so we can get it done much cheaper, but we are tired.

So now here we are with builders a year or more out, having trouble finding crews, one thing after another. My wife talks me into stopping into Oak Creek Homes because they had some that looked nice. I have been against a mobile home because i lived in one when i was a kid and it was a big POS. But after looking inside outside and all around this thing, it was actually built solid. Materials are great, fixtures and appliances are high quality. Set up on a foundation or at least on runners, i could see this was not the mobile homes of 30 years ago. We get the manager to add some specs that we wanted like no carpet, fireplace, sliding glass rear door, and some other things. We come up to a price that we were OK with and get going on paperwork.

We get the financing approvals back. I'm looking through everything and the payments don't seem right. After talking with the manager again(who is a friend, btw), she assures us that is right. The total for the house was right around $200,000 including the septic, hookups, foundation and everything. That's high for a mobile home, i know, but it is a well built house and we can have it in 4-5 weeks. But here is the part that told me to hold up: The total cost of the load over 20 years was $450,000. I asked "we are paying $250,000 in interest???" She says yep, that is common these days.


So is she right? This seems so ridiculous to me. I bought a house in 2005 and sold it in 2016 and this was not the case...

Total cost of the loan over 20 years should not be $450K unless you have really, really high interest rates. If you wish to PM me, (or call 972-795-2112) I'd be happy to go over things with you. I do loans for a living. (Not mortgages, but same principal)

thats about a 9.5 interest rate...

Interest is the tool of the banker and the devil.

On a depreciating asset....

No one can help you or answer your question without the interest rate and length of loan. The numbers you did throw around indicates a pretty high interest. You can run the numbers through an amortization routine and figure things out.

Example:

200k principle balance
180 month term
7% interest
1797.66 per month
Total payback at term = 323,578.80

So looking at it...yes, that seems like a high interest rate or high term or something...but you don't give enough info to run the numbers.

Good luck!

For a 30 year fixed rate mortgage, 5.3% works out to about $400k for the total cost with $0 down on a $200k loan. 6.1% works out to $436k. It would be like 6.4%-6.5% to get your total cost up to $450k. I would shop around for your loan. If you have decent credit, that is too high right now.

I took to long to run the numbers...call UB, he'll help you and be able to figure out what's going on.

Letting that company install electrical, septic, delivery, foundation, under pending is all a way they get to fluff their numbers. I’d ask for the price of the house then pay cash for everything else separate the company.


All that being said mobile homes always have higher interest rates as they do depreciate thusly more risk for the bank. Interest rates are high right now and continue to rise.

All this was unforeseen and I can’t say I would not have done the same thing in your shoes. But I don’t see things getting better in the short term. A lot of folks are still building and buying assuming they can refinance in 4 years and knock a bunch of interest off.

Depending on the amount of land you bought, layout, location you might be able to sale a few acres and take a lot of cash towards the trailer or a barndo.

Good luck

They didn't send an amortization schedule, but here are the details. The wife and i both have good credit, 730-760. I know interest is a little higher on a mobile, but wasnt expecting this.

This is 25 years, not 20. That extra 5 years does make a huge difference. Without knowing your credit history, I can't really say if the 7% is high or not. I believe it is a bit high for a mobile, but then again, you hit the nail on the head when you said that rates are higher on mobile...and rates have been going insane lately. I haven't seen rates go up this high, this fast, ever.

Myy house was built in the Gilmer area by Smithart builders. Pier and beam construction completely finished on the insid and then moved to Jefferson. They were several builders in that area that built homes like that around 2005 6 timeframe. A builder in Jefferson is doing the same thing now. Just a option but i am pleased with the house.

Turn key and quick will add to cost. As mentioned, I would try to contract septic and electrical and any improvements myself. I also would try to arrange to pay taxes and insurance myself.

If the mobile home dealer arranges for improvements, they will need to turn a profit on the risks. The less you borrow the better you will be.

Question for someone else to answer. Are mobile home loans the same as a mortgage or more like a vehicle loan.