Second Homes -- To Refinance or Not to Refinance...

The overwhelming majority of properties that I sell here in Blue Ridge are vacation homes. With the historically low mortgage rates we are seeing right now, I have been asked by several of my clients if it makes sense to refinance.

There is no 'one-size-fits-all' answer. Second-homes are considered riskier investments, so rates are slightly higher -- typically a quarter of a percentage point. But, if the home is rented more than two weeks out of the year it is considered an investment property and lending requirements become much more stringent and will undoubtedly be subject to higher rates. It can be confusing to know what your best option is when it comes to refinancing a second home, or if it is even a viable option.

Hopefully, this article in today's New York Times can help provide you with the answers to make a well-informed decision.