How To Finance A Vacation Home
FINANCING A VACATION HOME
A vacation home can be your private paradise, but you have to finance it first. It’s a large investment that requires careful planning.
Include credit unions in your loan search. You may find lower interest rates at a credit union.
Use your savings. If you can afford it, then consider using your savings to avoid getting a second mortgage.
Use the equity in your current home. You may want to get a home equity line of credit to finance the vacation home.
Consider renting the vacation home after purchase. This will help you pay off the mortgage.
Get a home loan. A home loan for a second home is more challenging to obtain, but it can be done with careful planning.
Consider co-ownership with a friend or family member. Purchase the vacation home with another person and share it.