Purchasing a Vacation Home?

It's vacation season. Whether you're enjoying a beachfront house, country cottage, or mountain chalet, chances are you have a vision of calling your favorite vacation spot "home" one day.

With an expected increase in demand, today's favorable interest rates, and creative home-financing options, it's a great time to invest in a vacation home. In fact, it's a wise investment.

This trend will likely continue. As baby boomers begin to retire, it's expected that more than 30 million Americans will buy a vacation home within the next decade.

With rising demand in popular vacation areas, knowing your home-financing options and how much you can afford can make a big difference in getting your perfect vacation home. Many homeowners use the equity in their primary home to finance their vacation investment, or take advantage of other financing options such as interest-only and zero-down programs.

Before you begin your search, here are a few things you should consider:

Family appeal: How does it fit the needs of your family? Will there be space and activities for family members who visit?

Travel time: If it takes all day to get to your vacation home, you may not visit it as frequently. Two to three hours travel time is ideal.

Climate: What is the area like year-round, especially during off-season? What are the political and tax issues? Browse through local newspapers as a guide.

Healthcare facilities: If your vacation home becomes your primary residence one day, quality healthcare may be one of your top priorities.

It has never been easier to bring your vision of a beachfront, mountain, or lakeside property into focus. With the proper planning and home financing, your dream of owning a vacation retreat can be a reality.

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