If you’re in the market to purchase a home, buying a modular home can help you save money while still getting adequate square-footage. With the average mortgage in America reaching nearly $300,000, could a modular home be a way to decrease the amount of money you spend on a home? Well, there are a lot of factors that go into this answer.
First of all, there are a lot of options for modular homes from $50,000 to $300,000 or higher. When you first begin to look at prices for these cheaper houses, you may find terms like “base price” and “finished price.” The amounts can differ quite a bit, but what does this have to do with a mortgage?
The base price is simply the cost that you’ll have to pay when it comes to the manufacturing of the home. This amount does not include delivery, site work, or anything else. The average cost of this home is generally around $50 per square foot. The finished price is the best possible estimate you can get for a modular home, which is around $110 per square foot. This amount doesn’t include taxes, fees, or the cost of the property and it is very likely to change.
Because of all these price differences, it’s impossible to give an average mortgage for a modular home. Fortunately, it is possible to estimate how much your mortgage will be. CNN Money has a nifty mortgage calculator that allows you to calculate the price of your mortgage. Remember to factor in the base cost, land, and any fees you know of for your home. Your town hall should have a list of all the expenses involved with purchasing a modular home.
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