Planning to buy a second home?
Our financial advisor offers secure mortgage options to fit into your budget!
There’s No Place Like Home
Except For Your Vacation Home
Ocean Front, Mountain Views or Skyscraper sights We can help you get there…
Things To Consider Before Buying A Vacation Home
A vacation home is a large financial investment. So keeping a few things in mind can help you build both wealth and equity.
Changing Real Estate Values:
Know when is the right time to buy the home? Check the real estate market value to avoid overspending.
Reliability & Flexibility of Vacation home
Always choose a location that is easily accessible and where you more often plan for vacations.
Property Tax & Mortgage Interest deduction
You may receive tax breaks on your insurance, land tax, and mortgage interest depending on your loan plan.
The size of the down payment
Check how much you need to pay down to buy second home? It’s the right time to evaluate if it’s worth investing in!
Available Funds
What if your vacation home needs renovation? Especially if you are planning to make this property a vacation rental home.
Property Management
Whether you are planning to make it a family vacation or rental vacation home, house maintenance is always on you!
1. What’s your financial health?
Review your expenses, maintain a high credit score, and check your savings.
2. Which home fits your budget & requirement?
Lendcomet lenders have different housing options from single-family, duplex or condominium, etc.
3. What features you are looking for?
Make a checklist including size, bathroom layout, kitchen appliances, neighborhood, or other features.
4. How much mortgage can a lender offer to me?
Make a checklist including size, bathroom layout, kitchen appliances, neighborhood, or other features.
5. How much home can you afford?
Always consider the property taxes, homeowners insurance, and total cost of the house than just monthly installment.
Check Out Some Of The Top Vacation Home Locations In 2022!
We are the Best mortgage lenders for first-time buyers!
Lee County Florida
Dukes County, Massachusetts
Swain County, North Carolina
Oscoda County, Michigan
How To Finance Your Second Home?
You can use your first home to fund your second home if you owe a large amount of equity
in your first home. Check the possible options to finance your second home:
HOME EQUITY LOANS
Such loans obtain a lump sum of money from your primary home at a fixed rate.
HELOC
Home Equity Line of Credit obtain money from your primary home at variable rates when required.
CASH-OUT REFINANCE
An ideal option get an easy loan approval of 80-85% of your first home value at low-fixed rates.
REFINANCING + 401(K) LOAN
The best option if you want to buy the second home in cash.
How Much Second Home Can I Afford?
The best way is to use our second home calculator. It uses your debt income, and gross monthly income
to determine the total property price and the mortgage rate you can afford to buy the second home.
Before you ask this question, always consider the following:
- Your credit history
- Debt-to-income ratio
- Size of your down payment
- Equity from the primary residence.
- Difference between the second home & investment property
FAQS
The mortgage interest on a second home is 0.5% to 0.75% higher than on the first home. The minimum down payment requirement for a vacation home is 20%.
Buying a second home is not as expensive as it is buying your first home. The potential rental income makes it easy to pay the monthly installments. Many homeowners prefer to rent their vacation homes to defray monthly mortgage expenses. Don’t worry! Almost all the mortgage lenders allow renting your second home.
- Homeowner insurance
- Property tax
- Utilities
- Maintainance
- Monthly gas, heating & water bills
No, the qualifications and T&Cs are entirely different for both houses. You spend most of the time in your primary residence. Whereas a vacation home is used for a lesser time. Keep in mind that lenders track your occupancy period to determine your credit rates.