Second Home
Getting
a loan on a second home requires more of a financial commitment than
getting a loan on a primary residence. Lenders require 10-20%
down and interest rates are often as much as a 0.5% higher on a second
home loan. If you were expected to keep two to three months cash
reserves on your primary residence you are expected to keep five to
six months reserves for your second home. If you decide to rent
your second home, it is considered an investment property and poses
a greater risk to the lender. This could raise your interest rates
even more.
If
you are in the market for a second home and you are willing to qualify
for a the financial commitment, you can obtain a loan for your second
home. All interest paid on your second home is tax deductible,
as is the interest paid on your primary residence. Although qualifying
can be more difficult, and rates may be a little higher, second home
mortgage rates are still near an all time low. Contact us to see
if you qualify.