Buying a second home or vacation home is a dream for many Americans. It’s also a big decision. Before you make any major money decisions make sure you break down the pros and cons of such an investment.
A second home can act as both a vacation home and an investment, as homeowners can easily rent them out when they’re not staying there. But like most home purchases, buying a second home probably means you’ll need a second mortgage. When you are going through the second home search and purchase process, there are a number of factors you’ll need to account for. These include overall affordability, purposes for the home, tax considerations and payment terms. Meet with a financial advisor in your area if you have questions about how buying a second home could affect your short- and long-term financial plans.
Second home mortgage are follow the the standard conventional loan limit of $647,200 in 2022 for a single family residence.
What Are the Advantages of Conforming Second Mortgages?
What Are the Requirements?