Is Buying a SECOND HOME on Your WISH LIST!
By myfirstcho6600809, May 6 2019 05:46PM
For some, buying a second home is the perfect way to get that vacation home for a “weekend getaway”.
For others, it can be a great way to acquire your ideal home to live in during retirement. Whatever the reason, it’s still a big decision, so make sure to weigh the pros and cons before you buy.
Second home: What are your goals?
If you want a weekend getaway spot, buying a home within a day’s drive of your current home will probably be your best choice.
On the other hand, if you’re looking for a future home during retirement, it’s a good idea to check out homes or condos that are single story, have easy accessibility, and have adequate health facilities nearby.
Another important thing to keep in mind is that interest rates on mortgages for second homes are typical higher than those on the mortgages for a primary residence.
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For example, buying a second home more than 50 or 100 miles from your primary residence, or in a different county, can often help you obtain a lower interest rate on the mortgage loan.
Regardless of location, lenders will want to be sure you can afford both your first home and second home mortgages payments comfortably.
Typically, they will want to verify you have at least a two to six months cash reserve of PITI, or Principal, Interest, Taxes & Insurance.
This reserve demonstrates your ability to afford payments on your primary home and second home mortgages in the event of a job loss or other unexpected emergency.
Buying a second home can seem overwhelming, but with proper planning, you can rest easy that you’ll enjoy all the benefits of second-home ownership.
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