By nbkc bank
Your home is a castle. But sometimes, it wouldn’t hurt to have a second castle, or one with a lake instead of a moat. Or better yet, one that you could rent out for passive income (whenever a carriage passes through town).
By now, the castle metaphor is tortured. But the idea itself never gets old: a second home can be a great investment. And if you’ve already purchased a primary residence, you may be wondering how this process differs. Keep reading and we’ll break it all down — giving you the basics on smartly navigating a second mortgage.
As you may be aware, humans can only be in one place at a time. But there’s plenty of reasons why you might want a second home:
Real estate is one part of a balanced investment portfolio. And if you’ve already diversified among stocks, bonds, and other assets, then a second home can make good sense. The benefits are real, and they include:
Of course, there’s a potential downside. And in this case, it typically comes down to money, time, and risk:
The housing industry has seen a seller’s market in recent years. In that environment, sellers are typically getting multiple offers on a home, and often receiving well-above asking price. They may even pay full cash, or waive the right to an inspection. In this environment, it’s easy to get caught up in the rush to buy — no matter the cost. But it’s worth keeping a level head.
Like most important questions in life, only you can answer it. But a good loan officer can help you reach the right conclusion. And because a second mortgage can be a little sticky on the details, it’s important to work with someone you trust.
At nbkc, our loan officers can help you explore all your options. For example, you may be able to finance a second-home purchase with equity on your primary home. We’ll walk you through the process — and all the requirements, depending on your situation.
When you’re ready to look at a second home, take a few minutes to explore with equity and options We’ll be here to help, whenever you’re ready.