Despite the recent jump in interest rates, second-home buyers can still afford a purchase using creative financing. An "80-10-10" mortgage, for example, allows them to make a 10-percent down payment, finance 80 percent of the property value, and obtain a second loan for the remaining 10 percent.
The money they save on the down payment, meanwhile, can be used for renovations, furnishings or other expenses.
The loan also makes sense for buyers who need to close the deal before they sell their current residence because it eliminates the need for costly bridge loans needed to help them pay two mortgages for a certain period of time.
"Affording a Second Home When Rates Rise," Inman News Features Online (10/15/03); Kelly, Tom.
The loan also makes sense for buyers who need to close the deal before they sell their current residence because it eliminates the need for costly bridge loans needed to help them pay two mortgages for a certain period of time.
"Affording a Second Home When Rates Rise," Inman News Features Online (10/15/03); Kelly, Tom.