Spring break has many Ohioans considering whether they’d benefit from a vacation home (perhaps somewhere warmer!). Before you sign on the dotted line for your new retreat, consider the following factors in your decision:
- Purpose: Think about how you plan to use the vacation home. Will you use it as a rental property, or will you use it primarily for personal use?
- Budget: Determine how much you can afford to spend on a vacation home. Consider the upfront costs, as well as ongoing expenses such as property taxes, insurance, and maintenance.
- Maintenance: Consider the maintenance required for the vacation home. Are you willing to handle maintenance tasks yourself or hire someone while you are away, or do you prefer a home that requires less maintenance?
- Resale value: Consider the resale value of the vacation home. Will the home hold its value over time, or is it likely to depreciate in value?
If you’ve answered these questions and decided the time is right to purchase your vacation home, you’ll want to consider your options for financing. There are several ways to finance a second home, including a couple of options not always available to first-time homebuyers.
- Mortgages: You can use a mortgage to finance a second home. There are several types of mortgages available, including fixed-rate mortgages and adjustable-rate mortgages. You can also choose between a conventional mortgage and a government-backed mortgage, such as a FHA or VA loan.
- Home equity loans: If you have equity in your primary residence, you may be able to use a home equity loan to finance a second home. A home equity loan is a type of loan that uses the equity in your home as collateral.
- Personal loans: You can also consider taking out a personal loan to finance a second home. Personal loans can be unsecured, which means they don’t require collateral, or secured, which means they use an asset such as a car or boat as collateral.
- Cash: If you have the cash available, you can pay for a second home outright. This is a great strategy during times when interest rates are high.
Before choosing a financing option, it’s important to consider your financial situation and goals, as well as find the best financing option for you. Call PRMI today and let us help you score your perfect vacation home!
PRMI – Great Lakes Division has been helping clients purchase homes since 1998 and is backed by one of the most established mortgage lenders in the county with a nationwide presence. We offer a variety of loan programs and service the greater Wooster, Ohio area – including 17 nearby counties. Are you looking for a trusted lender? Contact us by phone at 866.888.7902.
*Opinions expressed are solely my own and do not express the views of my employer.