You will have to pay a mortgage for two homes now, and facilities for your second home. Even if you are not there, part of the vacation home’s maintenance is to have utilities running at least to a minimum. There are many costs involved with the purchase of a second home, and you need to take them into account in the long term. A second home in a remote area, for example, may sound like a dream come true, but you need to ensure that you can afford the costs of taking care of two homes, such as repairs, utilities, maintenance, and so on.
When considering a real estate purchase, you have to think about financing a down payment. Unless you are a cash buyer, you will need to get a mortgage loan for a secondary residence, which can sometimes have higher interest rates.
Your vacation home can become a money-maker if it’s located in a popular destination and you make it rent-friendly for the times when you’re not there. However, you’ll need to consider the rental market. If competition is fierce you might have to invest quite a lot in keeping the place attractive and promoting it on the rental platforms.
Some people regret buying a vacation home once the novelty factor wears off. If you do get a vacation home, get it somewhere you know you’ll enjoy spending your time every year, or for months at a time.
Go to a Trustworthy Lender
Taking the time to carefully consider purchasing a vacation home and being confident that your vacation home is worth investing in can save you from regret down the line. Most families who buy a vacation home are happy to have their own place to escape to or work remotely from.
Having a second home that you only use for a fraction of the time gives you the possibility to rent it short-term when you are not there, generating more income. If it’s located in a place that is scenic during all seasons of the year, you won’t have slow seasons at all.
Here at CSMC Mortgage, we have different types of loans that fit various situations and conditions. We work with you to carefully assess your financial situation and get you into a loan that best fits your needs. Contact us today to learn more about financing a second home.
“This review is about Mark and Darci Richardson from CSMC Mortage in Simi Valley. This team is the BEST! For the past 12 years our home was "underwater" due to the "crash" in 2007, and unable to do anything with the mortgage except pay it. These two kept on top of things and finally the house qualified to REFI. We just completed everything and it closed last week... and they saved us over $900 a month!! That's a huge savings for a couple of senior citizens! We are SO happy now and finally can breathe. Thanks to Mark and Darci and CSMC Mortgage for following through, jumping through all the hoops necessary and helping us out! I can't recommend them more... they are the BEST!!!”
- Shari S.
“These folks are conscience and easy to work with. The “calm” as the “storm” of home loans rolls through! I would not use anyone else. They make sure ALL your questions are answered, be that what competitors may have offered, or ads you may have heard or seen. What a pleasure to do business with. Thank you team CSMC.”
- Michael G.
“Baret Grigorian was amazing!! From start to finish Baret was there to help in every way. I never felt like I had to call him to follow up on my loan transaction and he always kept me informed. He was able to get me great financing rates, a lower payment AND money back! Thank you Baret!! I look forward to working with you again in the future!!”
- Kenny D.
“David Honda and his team rocked!! They had great technology that took so much of the pain of home buying away. They were attentive to our specific needs and were on top of our loan process! David was always available, even when he was in Hawaii, and super responsive! Thanks David, Melissa and the team for an easy and great home buying experience.”
- Raymond F.
“Faye helped me purchase my first home last year. She was very professional and worked very quickly to help me procure financing. She made herself available around my schedule and took the time to explain my options for financing to help me get the lowest rate possible. Would highly recommend her to anyone looking for someone that is professional, highly knowledgeable, polite, and responsive.”
- James Z.
“CSMC Mortgage took great care of us and our home buying needs. Tony was more than we could have ever asked for, he went above and beyond for us and we couldn’t have been more grateful for all his hard work. CSMC Mortgage has a great and friendly staff, I would highly recommend them to anyone looking into buying a home.”
- Jannet A.
“I had the best experience with CSMC Mortgage. Buying a home is very stressful with all of the paperwork that has to be filled out. Faye was amazing! I have given several people her contact info, who are scared to take the step to homeownership. She took ALL of the stress away for me. I honestly, didn’t have to do much. She accommodated my crazy work schedule and help me get things done in a timely manner. She made me feel so comfortable and at ease. There were no surprises when it was time to sign and pay. I highly recommend her to anyone in need of her services and guidance. I can’t thank her enough.”
- Lisa M.
“With this being my first home purchase, my loan officer was very good at explaining everything to me and helping me with all my needs. Thank you for having such great people in the right place!”
- Cathleen H.