trade-in value?

[Jennifer]

We have a 1998 14X70 Fleetwood that we have been trying to sell for over a year now with no luck. I know it is almost impossible in my area because you can buy newer, bigger homes for less than our pay-off. We own 2 acres and were originally going to build a home, but due to the trailer we cannot sell, we are thinking of trading in for a manufactured or modular home. We have narrowed down our decision to Horton and Homes of Merit. My problem is, I don't know how much will be added to our loan. How do I know what the value of my home is? They won't put the entire pay-off amount on top of our initial loan, will they? I am not sure if we should spend the extra $ and go with modular. I would like to hear from anyone who has experience in these areas. PLEASE HELP!!! Thanks!

[rmurray]

I did not realize you had this kind of trade when I answered the other post...You might need to get a modular just to get the higher appraisal that is going to be needed to cover the amount you are upside down....

These situations can be very confusing...price of home..amount of trad...interest rate on new loan...plans for the future..

If your future plans are to sell in a few years...adding money to cover your other balance could be a problem...

If you are going to keep the new home for many years...trading now could be very smart..even if you have to take the hit on the trade...simply because interest rates are soooooo low right now..If you wait..to lower your losses by a few thousand..rate might increase adding tens of thousands to your long term cost..

The best way to compare prices in this case is to decide what quality features..conveenience features..construction standards you want...Then shop dealers asking only 1 question...how much will my fixed 30 year payment be..compare all offers with the same cash commitment if any..This strategy takes all of the issues and mixes them together...who cares how much you actually get for the trade...who actually cares how much the home price is...all most of us care is how much do we pay...the payment on equal terms will help you decide..

In the mean time..keep trying to sell your home...you would be far better off..