At Altius Mortgage and our partners at Mortgage Ogden, we’re proud to offer a wide variety of mortgage loans to Utahns of all needs. This includes those looking for their very first home, those looking to upgrade, and even those in another unique position: Looking for a vacation home, or a second home of a similar purpose.
In most cases, these kinds of decisions are made for multiple purposes – both personal and financial. Let’s go over a few such areas, plus why they might drive you toward considering a vacation home and a quality mortgage to go with it.
For many buyers, the primary reason for purchasing this second home is personal. This home is a place where you and your family, both immediate and extended, can go for various vacations and trips, used as a perfect getaway from daily life. Many families use these homes as a regular destination during the holidays, or for summer trips with the kids out of school.
In a place like Utah, you might consider a second home in a mountainous area that allows you unfettered access to nature and perhaps even ski slopes during winter. Being away from the daily home helps everyone relax and recharge, and if you have the funds to make this situation work, there are also additional financial benefits we’ll get into below.
On top of the personal advantages of a vacation home, there are often significant monetary benefits as well. In particular, many owners will rent out their second property when it’s not in use during the year – you can either do this on your own or using a property management company to assist with areas like maintenance, tenants and others.
Now, there are a few important factors you’ll want to consider here to make sure things are lined up properly from a financial standpoint. For one, homeowner’s insurance tends to be a bit higher if you’re renting the home out. For another, operating costs might increase slightly. In most cases, though, these costs are pretty low and do not cancel out the major financial benefits of renting. Many buyers use these rental funds to help pay down the mortgage, in fact.
Whether you rent the vacation home out at times or simply keep it for purely family usage, it’s an investment in your future. As you pay down your mortgage bit by bit, you’re building equity in this home. Home prices are on the rise once again, meaning that building equity in such a home could have several long-term positives for your financial profile.
For more on the potential benefits of vacation homes and how we can help you purchase one with a fantastic mortgage, or to learn about any of our mortgage loan services, speak to the staff at Altius Mortgage today.