Is it true that for second home refinance rates go higher? What constitutes a second home as opposed to an investment home?

A second home needs to be exactly that. The key is whether it can be considered that. How far from your primary residence is it? My real concern is working with a family friend that you obviously don't trust. Rates for non-owner occupied second homes are higher but the home might qualify as a second home since it is not a rental. Sit down with your family friend and ask 101 questions, starting with what a 30 year fixed ZERO point loan's interest rate would be right now. If he says anything over 4.375 he might not be able to get you the best pricing.

How far away from your primary residence is the property and would it truly be used as a vacation home in the destination of where it is located. The rate for a second home should not be much higher than a primary but as an investment yes the rate would probably be .5 to .75% higher. Let me know if I can help you further. Thanks... Jake B

Working with family friends can be a little sticky sometimes... Rates are great right now even for an investment property... Give me a call.. I will set your mind at ease :) 310.877.3800 / www.jaye4loans.com

Pedro,One thing I have not seen addressed here is who exactly is on title to the home? If it is in both your names, you may be able to refi as a non-occupant co-borrower as mentioned below. What is the rate and loan amount that you are trying to refinance? Call or email me and I can get you a quote in addition to the others you may already have.Best,Matt DavisPier West Capital888-PierWest(743-7937) X 701Matt@pierwestcapital.com

Let's give you the quick answers first, then more explanations. 1- No, second home rates are typically the same as primary residence rates; they just have stricter guidelines. 2- An investment is typcially rented out; a second home is used by either you or a family member at least 14 days a year, and is typically at least 50 miles away from your primary residence. If you and your wife are the owners on title, and you're making the payments for family member use, and it's at least 50 miles away from your house, then I would make the argument it is a second home, especially if you stay at that house for 2 weeks out of the year yourself; underwriting might not see it that way, though, and still classify it as a second home. If you're in close proximity, though, look at the FHA non-occupying co-borrower approach or the investment property loan. If you're concerned your family friend isn't being up-front with you, you probably don't want to want to work with him. But, if he's a true mortgage broker, he can't really do anything to lie to you, as all his compensation is disclosed on the good faith estimate; if the "Box 2" credit on the Good Faith Estimate looks the same, then he's telling you the truth about his available pricing. Another approach if there's enough equity in the property, and your mother-in-law is old enough (at least 62,which it sounds like she is), then perhaps you should look at a reverse mortgage in her name alone and take the burden of the payments off your shoulders.

Your home is a second home. Because it's primary purpose is to offer shelter for a parent there is no distance requirement. Rates will be the same. Happy funding, Rudi

Why not refinance with your mother-in-law and yourself on the loan? You could then be on the loan as a non-occupant co-borrower. Of course she would have to decent credit. As far as the second home or investment property, it would be deemed an investment since you do not live in it at all. I believe the first option would work well for you. Send me an email to further discuss and get you approved. We are direct lenders and fund in all 50 states.