Benefits Of Buying A Second Home - 1397 Words

According to NAR, more than half (52%) of vacation home buyers who got a mortgage financed less than 70% of their purchase. A full 39% of investors paid cash for their income properties. But don’t walk away just yet. There are some ways you can leverage equity you have elsewhere to make a good down payment, without compromising the goals you have in place for retirement. Buying a second home requires a serious look at your financial capability. At Second Home Life, we understand that everyone may dream big but we also want to show you destinations that can fit within your budget and enable you to buy a vacation home. Understanding both the cash requirements and the ongoing expenses will help you make realistic plans that you can afford and land you a vacation home you can enjoy. Down Payment Cash Requirements While you can find lenders who will allow you to buy a primary residence with just 5% down, or perhaps even less, buying a second home is another matter. Some lenders will allow you to put 10-20% down, although you will be subject to PMI and the additional mortgage insurance cost that goes along with that. Most lenders will look for at least 20% down. This will also enable you to avoid the additional mortgage insurance requirement. So, if you’re looking at a $200,000 vacation home, plan to put at least $40,000 down to get the best deal you can get on a mortgage. One of the commonly used sources of cash for a down payment on a vacation home is from the equity in yourShow MoreRelatedProcess Of Buying A Home1163 Words   |  5 PagesProcess of Buying a Home In the United States, buying homes is the part of the American dream and is a main focus for many families. Being home owners show the endeavors of hard working. In the past, the signs of â€Å"Bank owned† and â€Å"Foreclosure† catch the people’s awareness. However, people could prevent losing their homes if they have been well-prepared. Is losing homes the reason that people should have strategies before buying homes? The answer is yes because I had been successful buying a home and hadRead MoreAnimal Adoption, the Price of Love Essay889 Words   |  4 Pagesthe best feelings, second only to a child. An animal will bring years of happiness, laughs, kiss, hugs, and love. When it comes time to add a furry 4-legged pet to a family, adopting from a local animal shelter is a better option instead of buying from a private breeder. An animal adopted from a local animal shelter obtains a second chance of life instead of dying like the three million euthanized animal s. Adoptions gives an animal a second chance at life, find a forever home and helps with the controlRead MoreQuestions On Buying A Home824 Words   |  4 Pages Goal: 5 More reasons Buying Beats Renting Word count in this document: 805 Title: 5 More reasons Buying Beats Renting Are you thinking about the pros and cons of renting verses buying a home? There are many things to consider. But overall, buying a home will always be your best bet. In the long run, it will benefit you so much more than renting an apartment or a townhouse. Here s a look at some reasons why. 1. Tax benefits You can deduct mortgage interest as well as your property taxes.Read MoreBenefits Of Adopting A Dog962 Words   |  4 Pagesor labeled as unable to be adopted they can be euthanized. However, solutions are available to save these animals such as increasing the number of people adopting from the shelter. Rather than buying a dog from a breeder people need to consider the benefits of adopting a dog who is in serious need of a home. Animal shelters do the best with what they have to save as many dogs as possible. More often than not these animal shelters are run on a low budget. There are millions of dogs around the countryRead MoreEssay on Buy or Sell1727 Words   |  7 Pagesbuy a home. In our case study, Beth and Jon Linton are considering the critical decision of buying or renting at Stedman Place in Newton, which is a western suburb of Boston, Massachusetts. The timing of this decision is important, as the decision is being made in July of 2006, before the housing market downturn. The case gives insight into the couple’s decision-making process, and the pros and cons of buying versus renting are weighed. There are a few important benefits associated with buying a homeRead MoreAdvantages of Buying a Home1532 Words   |  7 PagesPurchasing a Home Buying a house for most is the American dream, but with today’s economy many people are unsure if the dream can be obtained. The main concern for most people would be the financial responsibility. Many people believe that the financial responsibility is overwhelming and they are just not ready. Although some people believe they are not financially ready to purchase a home, buying a house is a better option than renting an apartment for three main reasons. First, becoming a firstRead MoreBuyer Decision Process999 Words   |  4 Pagesmakes you decide whether or not to buy certain product or even buy into certain services mainly depends on inside or outside influences. These influences are part of our buying schema, what buying behaviors we have learned taught by parents or siblings, even friends, this is a type of blueprint in the recesses of our minds. Our buying decision processes are based on five stages, a need recognition, information search, evaluation of alternatives, p urchase decisions, and post-purchase behavior. The productRead MoreA Report On The Housing Market1659 Words   |  7 Pageseconomic events and factors specific to renting and home ownership. Rent/Price Ratio Data The rent/price ratio data over a fourteen-year span from first quarter 2000 through first quarter 2014 tracks the trends of the housing market leading into the housing crisis that started in 2007 and its rocky path to correction. The start of this period shows a ratio of 4.7 percent, followed by a downward trend to its lowest point of 3.13 percent in the second quarter of 2006. The high point occurred in theRead MoreHelping The Nations Economy From Experiencing A Housing Market Disaster854 Words   |  4 Pagesmore consideration by many. I believe this to be a strongly meaningful quote because the recent Great Recession we experienced and the long recovery we have been experiencing is a great example. Many people found themselves having to foreclose their homes, file bankrupt, without a job and many other devastating crisis. Not learning from something of this matter many will find themselves back repeating this time and time again. Many people think about money and become greedy in these situations not thinkingRead MoreThe Recession Of The Housing Crisis914 Words   |  4 Pagessales were increasing and the American dream of buying a home was decreasing. Many people felt hopeless and cheated when it came to the economy’s poor status due to the housing crash. Many lessons were learned from the collapse and although it may seem hard to believe, there were silver linings in the mistakes made during the mortgage meltdown. Today, real estate buyers are benefiting from the past mistakes and have more confidence in their home buying purchases. The bad times endured came with