A guide to purchasing and financing a second home

Mortgage loans for second homes are not that much different than purchasing a primary residence. First, you should be prepared to put down a minimum of five percent. The larger your down payment is the lower you should expect your overall closing fees to be on a purchase. If you are staying under the conforming loan limit of $ 417,000 then you can purchase a second home with only a five percent down payment. If you are purchasing a larger home and in need of a jumbo loan program you may be required to put down a larger down payment. With less than a twenty percent down payment you will be required to pay for (pmi) private mortgage insurance. Many states will also require you pay more taxes on a home that is not designated your primary residence. The real estate market has never been better for purchasing a second home, but you should closely review your finances before making a decision and be sure to entertain mortgage quotes from different lenders to make sure you end up with the most favorable loan terms.

12-12-2007 © LoanNetwork.com

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