Four Ways to Finance Your Dream Vacation Home
If you dream of owning a cabin in Northern Wisconsin, now is a great time to start the process. But what does it look like to finance and pay for your dream cabin? When it comes to financing your vacation property, there are multiple options to look into.
If you’ve already paid off your first mortgage or would like a conventional loan for your Northwoods cabin, getting a vacation home loan is a great place to start looking. We recommend using a local mortgage lender who specializes in second homes. These lenders will know the ins and outs of financing an additional home and be ready with the best options for your mortgage.
If you currently own your home and have equity, it is possible to refinance your current mortgage and get the cash to buy your vacation home by doing a cash-out refinance. A cash-out refinance allows you to replace your current loan with a new mortgage loan for a larger amount than the existing mortgage and keep the difference between the two loans in cash.
Home Equity Loan
Another option to use your current home’s equity is to apply for a Home Equity Loan. This allows you to borrow money against the value of your main property. This type of loan is a lump-sum payout with a fixed interest rate and is paid off in equal monthly payments, just like the mortgage on your primary home.
Go in with Friends or Family
Sometimes buying your Wisconsin dream cabin might feel out of reach, even with the above options. Another opportunity is to find friends or family members you trust to purchase a home together! Two checkbooks are larger than one and could make buying a vacation home achievable, plus be a great chance to grow deeper relationships with your new co-owners!
Need help finding your dream cabin in Northern Wisconsin? We’re here to help! Contact us today to start the journey of finding your dream vacation home!