Your Lake of the Ozarks Mortgage Lender: FAQs About 2nd Home Mortgages

Buying a second home can feel a lot like buying a first, but there are certainly some new questions that may come up during the process. This is a wonderful time to purchase a home at Lake of the Ozarks, and if you have been considering this next financial step, we want to help answer your questions. Here are a few frequently asked questions that come up during the mortgage process, but more specifically when buying a second home.

Q: Can I Handle the Financial Responsibility?

A: This is something that you will have to consider carefully. Not only will you be taking on the additional mortgage, but you will also be signing up for a second homeowner’s insurance policy, property taxes, additional utilities, and maintenance. Another aspect that is unique to second homes is that they do not qualify for government-backed mortgages. If you are curious about how a second home will impact your finances, be sure to fill out the application on our website (www.YourLakeLoan.com) and we can help you take a look.

Q: Why Do I Want to Purchase a Second Home?

A: This may seem like it has a simple answer, but for many second homeowners, it could be much more involved. For some homeowners, a second home is going to be a weekend getaway where they can enjoy the quiet peacefulness of the Lake, for others, it is going to be an investment property where they can hopefully enjoy it a few times during the busy season, but mostly rent it out. Knowing how you want to use this property from the start will affect many different choices down the road, from the type of mortgage you choose to the insurance you select.

Q: Are Interest Rates Higher for an Investment Property vs. a Vacation Home?

A: They can be. When a buyer is purchasing a home to be their vacation property at Lake of the Ozarks, for example, it is generally far less risky than for an investment property. If someone is planning to purchase a condo or a lakefront home and will be relying on renters and vacationers to assist with paying for the mortgage, it can often be seen as a risk. This does not mean that you cannot get good rates, though! If you are interested in getting a mortgage on an investment property, fill out the application on our website and we can talk about the details.

Q: What are the most popular ways to purchase a second home property?

A: There are several ways to make this happen. A common strategy is to do a cash-out refinance on your primary home to get the proceeds to use for a down payment on the new purchase or to pay cash for it, if there is enough equity in your primary home. A second way is to get a HELOC (home equity line of credit on your current real estate. A third way is to get a conventional loan on the second home. All three options are things we can help with, and we can show you all the options to help you decide which one is right for you.

Ready to Buy Your Dream Home?

The first step is to fill out the application on our website (www.YourLakeLoan.com). After you have completed that process, we can discuss which options are better suited to your needs, and help you choose the right financing options. At Team Lasson, we are so excited to help you make your dreams a reality, and we look forward to assisting you in purchasing a home at Lake of the Ozarks. Visit our website to learn more about our team, as well as to get started!

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