Second Home Loans in the Long Beach Island Real Estate Market
LBI Real Estate Second Home LoansLong Beach Island Real Estate
Buying a home in the LBI real estate market is an exciting experience and can act as an excellent investment opportunity. Since the impact of Hurricane Sandy the end of October 2012, both the number of homes sold in the average sales price been on the rise. For many, the improvement in the real estate market on Long Beach Island has prompted action and increase the desire to own a home at the beach. For those looking to buy a home on Long Beach Island, it is important to understand LBI real estate second home loans and how they may differ from a primary mortgage.
Click here to search all homes for sale in the Long Beach Island NJ real estate market
LBI Real Estate Second Home Loans
Before we begin, it is important for any prospective buyer to speak with their mortgage representative. Every situation is different and will vary greatly depending on an individual’s financial position at the property they are looking to purchase. That said, there are some generalizations we can make about second home loans in the Long Beach Island real estate market.
- Second home loans will typically require a minimum of a 20% down payment
- For most buyers, there will be both fixed rate and variable-rate products available
- The interest on a second home loan may be tax-deductible which can help to offset the cost of the loan
Unlike a mortgage for a primary residence, most loans work will require a minimum of 20% down payment. In the primary mortgage market, there are special products that will allow for low or 0% down payments… But these are not intended to be used for a vacation home or investment property.
There are a number of mortgage products available to those looking to purchase a second home in the Long Beach Island real estate market. The most common utilized second home mortgage is a conventional 30 year fixed rate loan however there are variable-rate products and interest only loans available as well. Typically, these variable-rate or interest only loan products will be used for buyers who are looking to build a speculative real estate portfolio or maybe planning to tear the home down and rebuild in the next few years.
Depending on your individual financial situation, the interest on a second home loan may be tax-deductible. In fact, some buyers purchase a second home for this tax deduction on the advice of their accountants. If a home will be rented as an investment property, it is possible in the second home interest may not be tax-deductible, so it is important to consult an attorney and an accountant to understand your unique situation.
Second Home Loans and Mortgages on Long Beach Island
The lending rules are always changing so it is very important to consult a mortgage professional to understand the current rates in terms of second home loans and mortgages. The good news is, second home mortgages are very much available and offer competitive rates and terms. Buying a home on Long Beach Island is a major financial investment and it is ported to understand the rules of the LBI real estate second home loans before entering into a purchase agreement. The very last thing any buyer wants to do is overextend themselves and understanding the rules of these mortgages is a first step to ensure a profitable investment on Long Beach Island. For more information about LBI real estate second home loans or buying a home on Long Beach Island, contact me and I will respond right away.
By : Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
www.BuyLBI.com
Click here to search all homes for sale in the Long Beach Island NJ real estate market