Buying a second home may not be something that many current homeowners have considered, but there are reports stating, and some experts who feel, that homeowners may be able to find affordable deals on a second property as home values have remained low and interest rates are still relatively affordable, despite recent increases. Understandably, there are many homeowners who have had a great deal of trial and strain related to their home and the housing market in general, but for those who are in a decent financial position and on a stable ground in their financial life, these deals on second homes may bring a more affordable second home buying market.
A recent report on CNNMoney.com made mention of home buying that is currently going on in Florida, and stated that when it comes to second homes, “Cash buyers are going to have an easier time negotiating a deal, particularly if they are using the place as a second home,” but the article also mentioned, “Rates are also incrementally higher for people who will use the property as a second home or a rental.”
Obviously, homeowners who have been looking for opportunities to acquire a second home have the option to do so now as there are many people who are selling their home due to seeing a decrease in the property value, among other reasons, which has made some very nice homes quite affordable. This of course is a bittersweet opportunity as some homes have decreased in value to a point where many feel they are unlikely to return to their original value anytime in the near future. Yet, this still translates to options for some to lock in an affordable mortgage on a second home.
There have even been some senior homeowners who have reportedly used funds from a reverse mortgage home loan to purchase a second property, but of course when it comes to whether a homeowner should buy a second home or not, this will be a situation which must be heavily researched and considered before a decision is made. There are also indications that many banks are asking for a sizable down payment or incredible credit before these affordable financing opportunities are offered. Many reports have stated that banks have loosened their lending practices, but homeowners who are looking to acquire a second home loan are not obviously guaranteed a mortgage unless they are in a stable financial position where meeting the costs of a second home can be easily handled.