Does second home purchase usually involve higher rates or down payment?

Second homes are classified as more risky to investors because a borrower is more likely to default on a second home that a primary and that results in higher rates, so yes to the higher rates. The down payment, not really though. You can still get into a second home for about as much as a primary.

It usually depends on the lender. Most of my investors do not charge more for a "second home" than they do for a primary residence, but some do. All of them will require a larger down payment (at least 10% down), and most want 20% down. Remember, a second home is typically a vacation home or a supplemental residence that is located in either a resort community or a significant distance from your primary residence, and is not intended to be rented out. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950

The short answer is yes.. since you would most likely give up your 2nd home if things go ruff rather than your primary residence, it predominantly a more risky loan, and the lenders price these loans accordingly.. However, if your loan to value is 60% or lower, there would be no difference in your rate.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

The rate will be a little higher, & the downpayment may be a little bit more. How far is the property from your current residence. If it is considered a true vacation home, then not much difference. You will have to meet lender guidelines for the property to qualify as a second home & not an investment property. If it is detrmined an investment property then 25% down & the rate is going to be much higher.

There is some difference, usually at least 10% downpayment but the rate won't be terribly different. PMI costs with a downpayment less than 10% will probably be more as well. I can assist you in TN if you like. pdumouchel@primelending.com or 843.619.6025

The rate will be a little higher but not that much higher. The down payment will be more but, as with all loans, the rates are affected by how much you put down. The more you put down generally the better the rate.

Possibly a minimal difference in rate. Down payment may be required of 10%.

It's always good to go with someone local. I see your in Hermitage...... I'm also in TN (Brentwood - Franklin Area). I'd be happy to help you with your 2nd home - all that's needed is 10% down and rates would be in the mid to high 3's with qualifying credit. Contact me direct if I can be of any further help. jarnold@primeres.com

It's always good to go with a local lender. Yes the down payment would be a little higher (10%) but no the rates would be the same.JArnold@PrimeRes.com

As loan as you can safely afford both home payments, most lenders will give you basically the same terms as your primary home with one exception. That being a minimum down payment of 10%.