If you've been dreaming of purchasing a vacation home, one way to make it happen is by utilizing the equity in your primary home. The equity in your primary home is the difference between what you still owe on your mortgage and the current market value of your home. If that difference is positive, it means you may have equity that you can access.
Here are some steps to follow when utilizing the equity in your primary home to purchase a vacation home:
1. Determine how much equity you have. You can find out how much equity you have in your primary home by getting a home appraisal or a home equity loan calculator. Make sure to deduct any outstanding mortgage balances from the appraised value of your home to get an idea of how much equity you have.
2. Consider the costs. You'll want to take into account additional expenses such as closing costs, home inspection fees, and property taxes before making any decisions. You'll also want to factor in the costs associated with maintaining and traveling to your vacation home.
3. Get pre-approved for a vacation home loan. This is crucial to ensure that you can afford the vacation home you want to purchase. Contact several lenders to compare rates and terms, and choose the lender that offers the best deal.
4. Compare vacation homes. We have referral partners in some of the most desirable locations in the world to help you shop. Let us connect you with the right buyer's agent to assist you with your ideal location, budget, and preferences when you begin to search for a vacation home. You'll want to find a vacation home that meets your needs and gives you the best long-term financial value.
Make your dream of owning a vacation home a reality. Call Landry & Co to see if it's the right time for you!
