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Vacation Homes: How to Buy a Piece of Paradise

Do you find yourself returning to the same pristine lake every summer, wishing you owned your own piece of paradise? If so, it might be time to listen to your heart and consider buying a cabin or other vacation home. We asked Matt Helling, Vice President of Sales and Operations at Cambria® Mortgage,™ for his advice and insights.

A Strong Year for Homeowners

This continues to be a strong year for real estate, with historically low interest rates for both primary and secondary residence loans, and a 30-year fixed rate that is expected to remain at historic lows for the rest of the year. “Between attractive loan programs and flexible credit guidelines, qualifying for a vacation home loan is generally not any harder than it is for a primary mortgage, as long as you have enough income to cover both mortgage payments,” says Helling.

Start with Cambria Mortgage, a Full-Service Mortgage Lender

When it comes to buying a vacation home, many people assume that a small community bank in the area will offer the most attractive rates. What homeowners don’t realize is that many community banks generally offer fewer product options and only adjustable rate mortgage (ARM) loans. “As a full-service mortgage lender, Cambria Mortgage offers 30-year fixed-rate mortgage loans, which can give you peace of mind that your payments won’t go up over time,” says Helling. “We’ll help you assess all your options, including tapping the equity in your primary residence, and decide which program is right for your needs and goals.”

The Financial Benefits of a Second Home

Owning a second home may have financial benefits, as interest on a secondary home mortgage is usually tax deductible. Your tax professional can help determine whether you would be eligible to deduct the interest from your taxes. “If you are only planning to use your vacation home for a limited number of weeks each year, you may be able to rent it to lower your cost of ownership,” notes Helling. Over the long term, real estate in high-demand vacation areas typically has a higher-than-average appreciation. To get an idea of how property has appreciated in a specific area, consult your realtor or other real estate professional.

The Fun of Owning a Vacation Home

In addition to the joy of owning property in your favorite corner of the world, a second home can also help create a sense of belonging. Being part of a neighborhood or a condominium association can help build relationships and create long-term friendships. “If you have family and friends all over the country, a cabin or vacation home is a great way to bring everyone together for long weekends, reunions, and other get-togethers,” says Helling.

 If you’re ready to make your vacation dream home a reality, the experts at Cambria Mortgage can help you get started. To schedule a complimentary consultation, call Cambria Mortgage at 952-942-0110 today.