Benefits Of Buying A Second Home

1397 WordsNov 14, 20166 Pages
According to NAR, more than half (52%) of vacation home buyers who got a mortgage financed less than 70% of their purchase. A full 39% of investors paid cash for their income properties. But don’t walk away just yet. There are some ways you can leverage equity you have elsewhere to make a good down payment, without compromising the goals you have in place for retirement. Buying a second home requires a serious look at your financial capability. At Second Home Life, we understand that everyone may dream big but we also want to show you destinations that can fit within your budget and enable you to buy a vacation home. Understanding both the cash requirements and the ongoing expenses will help you make realistic plans that you can afford and land you a vacation home you can enjoy. Down Payment & Cash Requirements While you can find lenders who will allow you to buy a primary residence with just 5% down, or perhaps even less, buying a second home is another matter. Some lenders will allow you to put 10-20% down, although you will be subject to PMI and the additional mortgage insurance cost that goes along with that. Most lenders will look for at least 20% down. This will also enable you to avoid the additional mortgage insurance requirement. So, if you’re looking at a $200,000 vacation home, plan to put at least $40,000 down to get the best deal you can get on a mortgage. One of the commonly used sources of cash for a down payment on a vacation home is from the equity in your

More about Benefits Of Buying A Second Home

Open Document