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ousing markets across the country are still seeing record levels of activity, with price increases to match. The question going through many people’s minds has become, “Is it still a good time to buy?” Though inventory remains low due to the continued high demand and interest rates have begun to rise, there are still opportunities to be seized. With this in mind, it’s important to remember that the keys to making a smart second-home purchase are planning and flexibility. As a mortgage consultant with Valley Bank, I have seen how clients are benefiting from a more thoughtful approach to their secondhome purchase. I’ll walk you through some of the top considerations I discuss with my clients.
MONEY MATTERS
a higher down payment and show that you have more substantial reserves. Some lenders require proof of your ability to make at least six months’ worth of payments. Consult with your loan officer at the start to determine how the property will be classified (second home or investment) to identify all the requirements.
Consider both fixed-rate and adjustable-rate mortgages
Fixed-rate mortgages have long been a default selection by many who planned to purchase a second home and keep it for 30plus years before handing it over to their children. Adjustable-rate mortgages are David Ballard becoming a more appealing option in some cases; however, they offer lower interest rates than fixed mortgages for an initial time period, before the rate changes. Know how you plan to use the property mortgage More recently, many homeowners are holding on If you’re buying a second home to use primarily as an to second-home properties for shorter time periods, investment property, you’ll likely have to come up with refinancing within five to 10 years of their purchases, or 30 Lake Martin Living
