Perhaps you live and work in a busy metropolitan area or in the middle of suburbia and you are at a point in your life where you would like to be able to escape to a seaside location where you can enjoy the beach or take up kayaking. Living in a mountainous location that offers a wide variety of year-round activities from skiing to hiking may appeal to you. How can you obtain this extension of the American Dream to own not just a primary residence, but also a home away from home? Financial considerations can make or break your ideal vacation home purchase. There are ways to help you afford your dream vacation home:
1) Set Up A Savings Account
While evaluating your financial ability to purchase a vacation home, you may find that you will need to pay down existing debt and increase the amount of money that you have available to use as a down payment. Most lenders require a down payment of 20 percent. Others require a higher deposit of 25 to 35 percent on a vacation or second home. The fees associated with closing costs should also be included when setting aside money in your savings account.
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