Mortgages for Second and Vacation Homes

Lake house purchased with a mortgage for a second home.

Find information on refinancing and purchasing a second home in today’s marketplace.

Over the past few decades more and more professionals have purchased second homes and vacation properties in the United States. With that growth, a greater percentage of lenders and brokers have begun financing vacation homes. Today, the vast majority of companies offer products for vacation properties. The mortgage rates presented in the rate tables on are for owner occupied primary residences and therefore you will have to speak with the various companies to obtain their current pricing for second home financing.

Guidelines for second home mortgages are often a bit more restrictive than with loans for primary residences. Why? Because if borrowers find themselves in a position where they have to walk away from their properties or not make a mortgage payment, they are likely to neglect their obligations on their second homes. Thus, many banking institutions view vacation home as more risky. Lending guidelines can and do vary by lender so be sure to shop around to find the right fit for your individual needs.

Mortgage products for second homes are typically similar in functionality to what you’d find with financing a primary residence. Most lenders offer a variety of fixed rate (often 10,15, 20 and 30 year) and adjustable rate programs (3,5,7,and 10 year introductory rates) and non-conforming loans can be used for loan amounts that exceed areas’ conforming loan limits. Contact a mortgage company in your area to find our what they have to offer and to check mortgage rates and closing costs for vacation homes.

If you’re planning on only renting out the property and not living in the home, you’ll likely need to look into an investment property loan.

Check today’s mortgage rates from competing mortgage companies using the rate table below. Note that the rates displayed are for primary residences and they will likely be higher for second homes and rental properties. Please contact the companies directly for quotes.