Why do you want to get a vacation home with as small a down payment as possible? How many weeks a year to you foresee spending there? Would a yearly lease of a home for a few months every year make financial sense rather than owning the home with the continual maintenace expense?This is an issue that I’ve been mulling recently, as we are considering a second home.
My thought was to obtain a mortgage for the second home with as small a downpayment as feasible.
In the case of financial catastrophe, I’d want as little of my net worth tied up in the second home as possible.
I’m interested to hear if I’m missing anything critical with the above approach, other than possibly limiting how much home we could afford (versus putting more down).
There is a good chance that we’d rent the second home out for part of peak season (about 10 weeks), since we are looking in a vacation destination. But it would primarily be for our use.
Our primary home is owned mortgage-free and we are retired. No debt, and HOA, utilities, and taxes for the primary home are about 8% of annual income.
Statistics: Posted by bltn — Fri Aug 30, 2024 8:04 pm — Replies 19 — Views 2125