Posted on: 12th Jun, 2010 06:20 pm
I own my home and paid cash. If I wanted to take out a loan to buy a second home, what kind of mortgage is it, and what is the interest rate.
I was told it is a regular mortgage. Perhaps you could settle this for me?
I was told it is a regular mortgage. Perhaps you could settle this for me?
Having paid cash or having paid off your 1st home has no bering on you purchasing a 2nd home. you would have to get a loan like the rest of us if you are going to borrow. The terms of the loan will be based on your credit, employment status, and income.
Interest rates are still pretty low, around 5% for top of the line credit and so on.
Interest rates are still pretty low, around 5% for top of the line credit and so on.
The mortgage to purchase a second home will be very similar to the type of loan you would need to purchase a primary residence. Although in this market second home mortgages do require a higher down payment % than an owner occupied might. Rates should be around 5% like the other poster indicated.
How many miles away is the second home from your primary residence in miles? In a resort area?
How many miles away is the second home from your primary residence in miles? In a resort area?