are considering branching out into the second home arena.
A vacation home is an exciting experience and rewarding
First you must note that vacation mortgage rates run
approximately 1/4 to 1/2 of a point higher than rates on primary
residences. If you are not renting the property, you must
occupy the home for more than 14 days per year. If you
have decided to rent it, you must occupy the property more than
10 percent of the number of days it is rented in order to
qualify as a second residence. Your tax deductions are
limited if the home is rented a portion of the year.
being said, vacation mortgages also have advantages. If
the total mortgage balances of the principal and second
residence do not exceed $1 million, plus up to $100,000 of home
equity indebtedness, your mortgage interest is fully deductible.
Many who are considering taking on a vacation mortgage are
relieved to know this and find this type of feature quite