Vacation Home Mortgage Loans

Some buyers choose to forgo a mortgage on their vacation home altogether, and take out a home equity loan on their primary residence to make the purchase. While this saves them the trouble of applying for another mortgage, home equity loan rates are usually higher than mortgage rates. And taking out a home equity loan requires that you put your primary residence up as collateral, so you could conceivably lose your home in the event of serious financial difficulty. Get the Lowdown on Home Equity Loans.

Despite the drawbacks, however, vacation home sales have increased dramatically in recent years. Florida, Colorado, Arizona, California, and Hawaii are among the favorite choices of vacation home buyers. If you're considering a vacation home in one of these states, or in any area where second-home buying is common, you may get a substantially better deal on a vacation-home mortgage. Lenders in these areas are familiar with the particulars of vacation homes, and must compete with other banks and brokers for their share of the market.