If you’re looking to buy a second property, Newfi Lending can help. Whether you want a new home loan or plan to use equity in your first home to purchase a second, Newfi can provide you with a wide variety of options to suit your needs.
What would be my monthly payment on a second home mortgage?
Second home mortgage rates depend on your credit, income, and other factors. Contact us to figure out what your second home mortgage payment is likely to be.
What are Newfi’s current second home mortgage rates?
Mortgage rates for second homes are typically a little higher than those for primary residences. Most lenders require down payments of at least 10%, but to avoid monthly payments for private mortgage insurance (PMI), you’ll need 20% down.
Ultimately, your mortgage rate depends on your credit, income, spending habits, overall debt — including the mortgage on your primary residence — and other factors. Rates can change every day, so it’s smart to find out what rate you qualify for today.
Frequently Asked Questions
What are the advantages of a second home or vacation home?
In addition to the enjoyment and convenience you get from having a home in another location, a second home may have other advantages, such as producing occasional rental income or serving as a real estate investment that can potentially appreciate.
For purposes of a mortgage, what qualifies as a second or vacation home?
Since investment properties are considered higher risk than second homes, lenders are careful to look at factors that indicate whether a loan is being taken out on a property that is truly a second home, rather than an investment property in disguise.
Here are some factors that lenders use to determine whether a home is a true second home:
- You live in the home on a near-regular basis
- The home is at least 50 miles away from your primary residence
- You don’t rent the property out more than 6 months a year
- You don’t already have another second home in the same area
- The property is not a timeshare
Can I use rental income to qualify for a second/vacation home mortgage?
No, you can’t use rental income to qualify for a second home mortgage. If rental income is an important part of justifying your purchase, the home will be considered an investment property, resulting in higher interest rates and down payment requirements.
How does a second home loan compare to an investment property loan?
- Second home mortgages have lower rates and down payments than investment property loans. However, you cannot use rental income to qualify for the loan.
- Investment property loans have stricter qualifications as well as higher interest rates and larger down payments. You can use rental income to qualify for a loan, provided you have proven experience as an investment property manager.
Why trust Newfi Lending with your second home mortgage?
Newfi is a direct lender, not a broker, so we can make lending decisions fast and at low interest rates. We’ve earned a five-star customer satisfaction rating from LendingTree for our low rates, fast processing, and excellent customer service. Give us a call at (888) 316-3934 and see just how friendly we are!