How to Finance a Second Home Loan in St. Louis | Cornerstone ...

If you are one of those lucky individuals that have a steady job, good income, and dough in your bank account, you may be able to afford a 2^ndhome loan in St. Louis. You are not alone on this; last year vacation home sales increased up to 7.9 percent. For an instance, let?s say you have been dreaming of a lake house for the past couple of years. Before you make that decision you want to confirm you can afford a second home loan in St. Louis. With low interest rates and eager sellers this would be a perfect time to get your fantasy 2^nd home.

The very first step is to find a local lender to discuss the pros and cons of your home loan in St. Louis.? You will need to consider all the expenses that go into getting a lake house such as taxes, insurance, and maintenance fees. It is crucial to understand that there are more costs involved than the up-front mortgage and closing cost. Another obstacle you have to keep in mind is how the property will hold during the off season. For example, the lake house may stand up magnificently in the summer time. However, when the snowy season arrives, you need to maintain the house during the cold weather. If you feel you can afford all these expenses, you are ready to get your vacation property.

There are three options to getting a 2nd home loan in St. Louis: Traditional vacation home mortgage on your new property, mortgage refinance, or 2^nd mortgage on primary property. One of the biggest disadvantages is that the interest rate is higher than a traditional loan. You will need to prove to the bank that you can carry a 2nd home mortgage.

If you have substantial equity on your primary home, consider getting cash out refinancing. However, the downfall of this option is that there is a whole new round of closing costs which could run 3 to 6% of your loan amount.

A vacation home could be financed as a fixed rate home equity loan or an adjustable rate home equity line of credit (HELOC).

If you are one of those lucky individuals who are able to pay cash upfront for your 2^nd home, you can use that money towards fulfilling other dreams. Get pre-approved today by filling out an online application on our website.

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