Palm Harbor Homeowners insurance

[Billy]

I am looking over a contract to purchase, and notice they have included "Homeowners Insuarance" for three years for $1500, I called the sales guy and he told me this was for fire,flood,contents.....in other words property damage,,,,not sure I want to fianance $1500 over 30 years, this is homeowners insurance...correct, i mean its nothing that cant be had elsewhere, cause Im sure that I would rather shop my own insurance....thanks in advance

[Mac]

Get your own. You can beat their deal.

[rmurray]

Definitely buy your own..You are right financing 3 years of insurance for 30 years makes NOOOOO sense...The saleperson will resist this a lot..He gets a bonus for selling the insurance and PH expects him to do so...but...this is your home..and your pocket book...This policy is probably with American Modern Ins...They are a good company but most often they have very high rates...Shop around with different agents and get quotes...Good Luck...

By the way...Be sure you shop the finance as well..PH makes more profit as a company by selling finance and insurance than it does for selling homes.......You can get financing anywhere you want..

[JohnnyJ]

At 8% interest, you would pay out $2,438 in interest alone on that $1500. That is
$1348 per year for those 3 years. Show the sales guy the math and he should
back down.

good luck

[Billy]

Maybe Im figuring wrong... I figure 0.8%x1500.00 is 1,200.00 yearly....

Now 1200.00 per year x 30 years=43,200???????

I never crunched the numbers, I knew it was a hefty price to pay....but can this be right??!! I will be paying 43K for 3 years of homeowners ins???!!

Someone PLEASE correct me if Im wrong.....thanks.

Also while I have your attention, on the contract to purchase is an allowance of $750.00 for an extended warranty, I talked to the sales guy, and he said this is an additonal warranty (apart from the manufactures 5 years warrenty) for the appliances, AC, structural, etc....Doing the math on this comes to $600 yearly???

Again please inform me if Im wrong....I know everyone need to make money, but I wonder sometimes how these salesman sleep at night.

Let me also say this, although I think it has no bearing on the above mentioned allowances....the home is a PH 76H2 model, 2002....it was a display home sitting on the lot, my wife and I looked at it, and its in perfect conditon.....this home retails for 74K....he showed us the invoice, and is letting us have it at the 56K on the invoice ( he needs the room to pull the new home in), do you guys think this is why he added the ins, and warranty, cause I mean its still a great deal...but those numbers are unreal!

[John]

You have th decible in the wrong place. $1500 @ 8% is $120.00 per year but remember you are paying for it for 30 years which is long after it has expired. Don't put anything on the mortgage except the house. If they are selling you a 3 year extended warranty on appliances you are paying for it for 30 years and most appliances have a one year warranty which can be extended through the manufacturer if you feel you need it, my choice would be never buy and extended warranty on an appliance because if you are going to have problems if is either in the first two months or after four+ years.
If it is a lot home ask for new carpet and check the tile, doors and hinges, counter tops carefully. My wife really likes the looks of a PH, I just don't like some of their methods and trying to sell you their finance, insurance and warranties does not sit well with me.

[rmurray]

The other post here is correct....You overestimated the number by X10....BUT...$ 4320 (interest) is entirely much too much to pay for insurance...By financing insurance with the purchase..you are delaying paying for the insurance until the time of sale...all the while you are paying $ 10 per month interest on this insurance.....


I cannot believe they are selling an extended warranty to cover "structure"...Just what does the factory warranty cover...nothing?....These extended appiance warranties are about useless...Remember the expensive appliances have longer warranties on the expensive parts...refers..2 to 5 years on the compressor...a/c's 5 years on the compressors...stoves, dishwashers, water heaters all sell for $ 250 or less...so you are really paying $ 750 plus interest of about $1800 to cover nothing...

I noticed you did not challange the 8% example the poster used...You better get better info on the financing so you can shop this as well...Current rates are about 6% on mortgages with TOTAL closing costs of about 5% of the loan including a construction loan...If the rate quoted is higher...or...the closing costs are higher.,..They are adding this to thier bottom line...2% additional interest over 30 years on the whole loan is about $40,000 additional cost...

Also...do not believe this BS story about selling at invoice...Remember PH ownes the plant and the computer that printed that invoice you saw...The only way to know if this is a buy..is to compare this home and its construction features and options to others available in your market...

[Billy]

Ok,
One more question...and by the way, I was just using the 8% example, i will go no higher than 7%...with the homeowners ins, that needs to be in place before I take possesion of the home? He said the closing cost should be no more than 4-5%....but that wasnt in the contract to purchase....no closing cost were in the contract to purchase, he said as soon as the loan is secured we will know about that.

Thanks for the advice guys......also with the carpeting...since its a double wide, they shouldnt have to tear the carpet out of the home to reinstall as it probably has a seam down the marriage line....there was no noticeable wear on the carpet..its very...ummmm, challengeing when buying a mobile home.....12 months of research, and you kinda still feel like a babe in the woods when the process gets rolling

[Bob]

Billy,

What is the latest on your PH home? Did they ever work out the financing to make you feel more at ease? What dealer were you working with? I am currently working with a PH dealer and I cant really say I feel totally at ease....
Would appreciate your inputs