Your Guide To Buying A Vacation Home at the Lake
First of all, congratulations on choosing to buy a vacation home at the Lake of the Ozarks! Prepare to make MANY fun memories on this gorgeous lake. If this is your first time buying a second home, don't fear the unknown. Our mortgage lenders at the Lake of the Ozarks are here to help you every step of the way. On that note, keep reading this week's blog for a few helpful pieces of information when it comes to buying a second home. Need help with this important process? Call MHQ-Mortgage Headquarters today. We can be reached at (573) 302-9990.
Your Guide To Buying A Vacation Home at the Lake
CONSIDER AN EQUITY LINE OF CREDIT!
A home equity line of credit (HELOC) is an open line of credit tied to an equity-based maximum loan amount. You may use the account for a set period of time (5, 10 or even 20 years) as long as there are funds. Once your predetermined time period is up, you will be required to pay off the loan, making monthly payments on the principal and interest. The interest rate can fluctuate month to month on a home equity line of credit, which makes this option appealing when interest rates are low, but risky when interest rates increase.
ASK ABOUT YOUR DIFFERENT OPTIONS BECAUSE IT'S NOT A ONE SIZE FITS ALL SITUATION.
When deciding what type of loan is best for you, it is important to consider how you will use the money and how you intend to pay it off. Do you need money in one lump sum or intermittent over several months or years? Do you want a fixed interest rate so you can repay your loan in precise monthly installments or would you rather have the flexibility to make any size payment above the interest-only minimum? In today’s competitive market, there are many options available. We will help you find the right mortgage product for your lifestyle and financial needs.
KNOW WHAT YOUR HOME'S APPRAISED VALUE IS.
By definition, a second mortgage is any loan that involves a second lien on the property, but you generally have two options: a home equity loan or a home equity line of credit. Both options combine your first and second loan, so your loan will be limited to 75 to 80 percent of your home's appraised value. With a home equity loan, you borrow a lump sum of money to be paid back monthly over a set time frame, much like your first mortgage. However, the closing costs (often 2-3 percent of loan amount) are often higher than your first mortgage and the rate - usually fixed – is also higher.
Ready To Make Your Dream Vacation Home a Reality?
Let us help! You've chosen an amazing place to buy a vacation home. We truly feel your whole family will be happy with this decision. We also feel that you'll be happier when you have an experienced mortgage lender at the Lake of the Ozarks to guide you through this process. That's where we come in. Call MHQ - Mortgage Headquarters today. We can be reached at the phone number listed below and you can stay informed by following us on our social media channels listed below as well.
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