| Purchasing a second home is an exciting proposition | | | | investments can be more volatile, and second home |
| for any potential investor. Before you take the second | | | | borrowers are more likely to move on to other |
| home plunge, make sure that you understand the | | | | investment opportunities or just give up on their |
| financial implications of your new investment. If you | | | | dreams of owning a second home. By asking for a |
| want to secure financing for a second home purchase, | | | | higher down payment, lenders can compensate for the |
| it's important to know what to expect. | | | | increased risk associated with borrowers looking for |
| Expect to Make a Larger Down Payment When You | | | | second home finance options. |
| Finance Your Second Home | | | | Expect Higher Interest Rates When You Shop for |
| When you're looking for financing options for a second | | | | Second Home Financing Options |
| home purchase, realize that you will have to make a | | | | If you want to secure a loan for your second home, |
| larger down payment on your second home than you | | | | be prepared to pay higher interest rates. But by |
| would if you were purchasing a primary residence. The | | | | making use of interest-only and adjustable-rate |
| reason behind the larger down payment is that lenders | | | | mortgages, you can implement a short-term strategy |
| see second home investments as higher risks than | | | | to lower your monthly mortgage payments, while |
| primary property purchases. | | | | enjoying the immediate benefits of homeownership |
| Borrowers are more invested and tied down to a | | | | times two! |
| home when it is their primary residence. Second home | | | | |