So, you own your own home and you have a good mortgage with a low interest rate. You’re steadily reducing the loan amount and you even make extra payments to lower the principal balance. Congratulations, you’re living the American dream.

Interest rates are low, the lowest they’ve been in years, and the real estate market is healthy, especially in south Florida. If you live up north and take regular vacations to Florida, this might be a great time to consider purchasing a second home. Here’s why:

Many experts say it’s just not reasonable to assume that rates will stay this low forever. There are already some signals that mortgage rates may rise in the next few years, so now is the time to lock in a low one. Also, most people remember the collapse of property values about 10 years ago and because everything goes in cycles it is reasonable to assume there will be another downturn though hopefully not as severe as last time.

Guidelines for purchasing a second home, or vacation home are different than for a primary residence, so one of the things your lender will look at is your ability to make two mortgage payments. A second home, by definition, does not generate rental income because if it did then it would fall into the category of an “investment property” and then, a different set of guidelines!

Sometimes a borrower will try to use equity in a primary residence to purchase additional real estate for cash, and that makes sense…sometimes. There may be tax considerations, and that is important.

The bottom line is to find someone in the mortgage business who has dealt with primary residence, vacation homes, and investment properties over a long period of time. Someone who has the resources to structure a new loan so that it makes the most sense for the borrower across the board.

Richard Cogswell has been building a sterling reputation for helping borrowers structure real estate mortgage transactions for over 20 years. When it comes to different types of loans and properties, he has seen them all. Richard offers the advantage of pre-qualifying borrows so basically the deal is set in advance of even signing a contract. This eliminates the issue of “last-minute” problems that so often cause deals to fall apart.

Richard is available 7 days a week by calling 954-734-4440.