Are you at the point in your life where your two-week vacations each year are the gem of your life? Is your vacation home your safe haven? Life is short, and it may be time to move, permanently, to that special place.
There are many decisions that must be considered before making the vacation-home mainstay a permanent feature in your life. It may be a good idea to try and get a lower interest rate on your second home by refinancing your home loan, for example.
"Jumbo mortgage rates have been at historic lows below 4% since Jan. 15. Average rates were 3.66% for a 30-year, fixed rate jumbo mortgage and 2.78% for a five-year, adjustable-rate jumbo mortgage on the week ending Friday, June 17th, according to HSH.com, a website that tracks mortgage rates. Jumbo mortgages have loan amounts higher than government-backed limits of $417,000 in most area and $625,500 in some high-priced places." - Anya Martin
If its worth it to refinance, that may be a great way to get a head start on paying off your second home. Cashing out on your current home loan can be a lucrative way to lower your mortgage interest rate on your second home.
Another important factor to consider is tax benefits. If you have made improvements on your home or have paid up to a million dollars in debt for a purchase, you can benefit hugely from tax breaks. Time of year can effect this greatly, for example, if your second home is located in another state, try and plan around what time of year your move full-time into your second home based on your income, etc.
Married couples benefit twice as much as single individuals when it comes to taxes on home sales. Your insurance premiums could also lower once you are settled in your second home, as primary homes are less expensive to insure than are vacation homes.
All of these things are worth consideration as you plan out your retirement, a change of pace, and a happier life.