The maths, with your numbers
What paying extra would do
Every dollar above the payment comes straight off the balance, so the interest stops being charged on it. These are worked out from the loan above.
How the balance falls
The same loan over different terms
| Term | Payment | Total interest | Total repaid |
|---|
A longer term lowers the payment and raises the interest. Your loan is highlighted.
Amortization schedule
Where each payment goes, from the first to the last.
Manufactured and mobile homes are financed in two quite different ways, and which one applies decides the rate, the term and the protections you get.
Real property or personal property
- As real property: if the home is permanently affixed and you own the land, it can be financed with an ordinary mortgage, at mortgage rates and terms.
- As personal property: a home on rented land or not permanently affixed is usually financed with a chattel loan, at a higher rate over a shorter term.
The difference is worth thousands. Work out both in the calculator above: the same home at mortgage rates over 30 years against a chattel loan over 20 at a higher rate.
What to check
- Whether the land is owned or rented, and what the lot rent does over time.
- Whether the home meets the lender's foundation requirements to count as real property.
- The resale market, which is thinner than for site-built homes.
- Insurance, which is priced differently for manufactured homes.
Quick answers
Can I get a mortgage on a manufactured home?
Yes, if it is permanently affixed and you own the land. Otherwise it is usually financed as personal property with a chattel loan, at a higher rate over a shorter term.
What is a chattel loan?
A loan secured on the home itself rather than on land, used when the home sits on rented ground. Rates are higher and terms shorter than a mortgage.
What is the payment on a $90,000 manufactured home loan?
At 9.25% over 20 years it is about $824 a month. At mortgage rates over 30 years the same money costs far less each month and far more in total.
Does lot rent count in the affordability test?
Lenders will count it as a housing cost, and it can rise over time, which is the main risk of buying a home on rented land.