interest rates changing mid-stream?

[Tao Scott]

What is the name of your state? NC

I'm in the process of looking to buy my first home. I'd found one, was pre-approved on a mortgage for 6.85%, and made an offer on the property. Some issues have come up so I've started looking at other properties as a back-up if this one doesn't go through. I found another one, but it's a modular (I'm more interested in the land anyway). My mortgage lady said that if it's a modular that my interest rate might go up .50 (making it 7.35%).

Does that sound right? Would it normally be a higher interest rate for a modular, or is my mortgage lady trying to pocket a few extra bucks?

Thanks!
T.

[seniorjudge]

Q: Does that sound right? Would it normally be a higher interest rate for a modular, or is my mortgage lady trying to pocket a few extra bucks?

A: Yes. I am amazed that you got such a low interest rate on a trailer.

[Tao Scott]

Thanks! Just making sure.

It's a newer modular, maybe that's why.

[seniorjudge]

Trailers decrease in value each year; they never appreciate. That's the reason for hestitancy on the part of some lenders to loan much on them.

[Tao Scott]

Yeah, I understand that. If it wasn't for the beautiful piece of land beneath it, I probably woudn't have thought twice about the place.