Preview:
Jaime Prieto and Migdal Ibarra have moved multiple times over the last several years, from the Peninsula to Manteca, Newark and back to San Mateo County.
After living with their daughter and four grandchildren for a little while, they decided it was time to move back to get their own space and be closer to their jobs.
Our thoughts on this story:
Prieto, who works at an auto body shop, and Ibarra, who works at Walmart and is also a cleaner, could no longer afford an apartment in the area, but the couple was lucky enough to secure a spot at a mobile home park in Redwood City. But that’s when other problems started to arise. The couple settled on something within their budget, but unlike manufactured homes, RVs and trailers are often financed like car loans, yielding much higher interest rates than traditional home loans. Even with decent credit, the couple ended up with a 27% interest rate.
I’m guessing the real reason this couple is paying 27% interest is that they fall into the credit grouping known as “subprime” with a credit score of 500 to 600. How do I know? Here’s what Google says about car loans (which has even lower interest rates than RVs):
Typical Rate Ranges by Credit Score (Approximate):
- Superprime (780+): New car: ~4.9-5.1%; Used car: ~7.4-7.5%
- Prime (660-780): New car: ~6.5%; Used car: ~9.7%
- Nonprime (600-660): New car: ~9.8-10%; Used car: ~14.1%
- Subprime (500-600): New car: ~13-13.3%; Used car: ~19%
Whoever wrote this article knows nothing about credit and interest rates and is trying to build a case that doesn’t exist, namely that – once again – capitalism is evil and takes advantage of everyone.

