If you opt to live in a mobile home rather than in a concrete built home, then you are up for several advantages with your decision. Foremost, you can save in mobile homes as you can buy it at a much cheaper rate. Mobile homes in the market are known to be an easy housing project choice for most people across the board and the trend continues to increase despite the prejudices that tend this kind of living environment. The advantages are quite real but are not that immediately obvious. The main advantage is fast equity building. It is only half truth to say that mobile homes depreciate on a faster rate over time. This is true if they are located in parks. However, mobile homes that are on land generally increase in value.
If you buy a mobile home with real estate, you will often find that it doubles in value after a bit more than 10 years. Of course, the house will be in need of consistent maintenance but this holds true for all houses at some certain point. What will happen is that the value of land will go up while the mortgage payments are lower compared to the stick-built houses. Since the seven year amortization, there is shorter than normal and lower amount of equity, you will find that you have build up equity at a fast rate.
Take for example a house with price tag of $100,000 with 6 percent interest on a 30 year mortgage loan will entail a payment of about $599.60. The amount of $500 will go to the interest while only $99.6 will pay off the principal amount. You will find that you have been building equity of 499.0. A mobile home on a land with a value of $30,000, 8 percent on a 10 year mortgage will mean that you need to make a payment of about $363.99 only. If you choose to live in mobile homes, you will notice that the interest is higher since the term is shorter. This means that you will be cleared after 10 years and become the rightful owner of the mobile home. During the first month, $200 will go to the interest while $163.99 will go to the principal amount. If you choose the mobile home, you are building much equity.
A faster payout for loans is due to the fact that the mobile homes on land appreciate much slowly compared to the regular house. There is really a high difference in the payments that you will have to make. The difference can gear you to have a better financial stability with a mobile home rather than with an expensive house. By paying less every month, you can be certain to build more equity. Since simple math is not really part of the licensing agreement, the real estate agent will not tell you these little bits of important truth and maybe you should not also expect the agent to tell this to you.