Buying a second home?

Every summer, you pack the car and head for your favorite vacation location to enjoy the great outdoors, great, food, and summer activities. Renting a house every year can get expensive which is why you may want to look at buying a second home or vacation property.

Benefits of Purchasing a Second Home

Convenience

The second home is always there when you want to use it no more having to make reservations and paying increasing rental fees. You can leave your summer/winter gear at your vacation place instead of having to haul it back and forth.

Income source

Buying a vacation home provides you with an additional source of income because you can rent it out the rest of the year.

Investment

Purchasing a second home is a great investment because it will increase in value over time.

Taxes

Your tax advisor can help you determine if the property taxes and mortgage payments can be counted as a tax deduction.

Things to Consider When Purchasing a Second Home

Additional expense of holding two mortgages: Buying a second home means that you will be paying two mortgages, if you still owe money on your primary home. You should evaluate your financial situation to make sure that you will be able to afford the double payments.

You may be able to use your current homes equity to buy a second home: Depending on how long you have owned your current home, and how much equity you have accumulated, you may be able to get a home equity loan to purchase your second home with. This allows you to use your equity as a down payment for the second home which can decrease the amount of your mortgage.

Location of your second home: When you look for a second home, location should be taken into consideration. Is it within walking distance to a beach, on the lakefront for easy boat access, or somewhere quiet and peaceful? Are there amenities nearby?

What type of second home do you want or need? Evaluate your needs for your second home choice. Are you looking for a condo, a single family home, a duplex, or a town home?

Can You Afford a Vacation Home?

First Rate Mortgage can help you find an affordable mortgage payment for your second home or vacation property. Want to do some research yourself? Feel free to use our mortgage calculators to get a better idea of what you can afford. If you would like a more accurate idea of how much house you can buy, use our instant rate quote form. If you are serious about buying and want to talk to one of our highly trained and knowledgeable staff for a loan prequalification or pre-approval letter, give us a call at 1-877-227-6840 and we'll be glad to get help you get started on buying the vacation home you have always dreamed of. You can always visit our pre qual website at http://www.firstratemtg.com/pre-qualification.php