Compare second home mortgage rates
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Compare second home mortgage rates
Current second home mortgage rates
The rates on mortgages for second homes are higher than those for loans against primary residences because they’re a riskier prospect for lenders — if in financial straits, you’re much more likely to pay the mortgage on the home you live in than the one you vacation in or rent out.
The interest rates on all types of mortgages, including those for second homes, have risen sharply since 2021, in part due to the Fed’s response to curb inflation. For mortgage rates to drop, inflation will first need to cool.
Second home mortgage qualifications and requirements
Your second home has to be used as a residence in order to qualify for a second home mortgage — it can’t be an investment or rental property. Investment properties come with stricter mortgage requirements, and are also taxed differently than second homes.
Similar to the mortgage on your primary residence, your credit, income, employment history and other factors need to meet the lender’s requirements. As early in the process as possible, review your credit report to check for errors or ways to improve your score. If you can, work on paying down debt — this can boost your credit and help you qualify for a bigger mortgage.
Here are some of the most common requirements for a second home mortgage:
- Credit score: 660 or higher
- Down payment: 10% or more
- Debt-to-income (DTI) ratio: 45% or less
Depending on where your second home is located, your lender might also require flood insurance.
How to get a second home mortgage
Here are the basic steps to obtain a second home mortgage:
- Determine where you’ll get your down payment.
- Budget for a second set of monthly mortgage payments.
- Research the best type of second home mortgage for you.
- Research second home mortgage rates.
- Choose the right lender for you.
- Get preapproved.
- Search for and make an offer on a second home.
- Apply for your second home mortgage.
- Be prepared to provide additional information in underwriting.
- Close on your new second home.
Lender compare
Compare mortgage lenders side by side
Mortgage rates and fees can vary widely across lenders. To help you find the right one for your needs, use this tool to compare lenders based on a variety of factors. Bankrate has reviewed and partners with these lenders, and the two lenders shown first have the highest combined Bankrate Score and customer ratings. You can use the drop downs to explore beyond these lenders and find the best option for you.

Garden State Home Loans
NMLS: 473163
|
State License: MB-473163
5.0
Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.

Homefinity
NMLS: 2289
|
State License: 4965
5.0
Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
Pros and cons of a second home mortgage
Pros of second home loans
- You can deduct the interest and property taxes. You can deduct the mortgage interest for both your primary residence and second home up to $750,000 total (or $375,000 if married filing separately). This applies only to “qualified” second homes, meaning you don’t rent it out, or you do rent it out but also use it yourself for a certain period of time each year. You can also deduct combined property taxes up to $10,000.
- You can use your primary residence to help pay for it. You can take advantage of the equity in your primary residence to make a down payment on a second home, either through a cash-out refinance or home equity line of credit (HELOC). Note: It’s typically better to do a cash-out if you know exactly how much money you need and can get a lower interest rate on your first mortgage.
Cons of second home loans
- It costs more. Generally, you can expect to have a higher interest rate on your second home loan compared to the one on your primary residence, so you’ll pay more in interest over time. You might also have a higher rate if you decide to refinance your second home mortgage down the line. Along with that, you’ll need to make a bigger down payment.
- It can be harder to qualify for. Because the second home isn’t your primary residence, you’ll need to meet stricter credit and DTI ratio requirements.
Why compare second home mortgage rates?
Shop around for second home mortgage rate quotes from multiple lenders. This exercise could save you a lot of money on interest in the long run.
When you shop, focus not only on the rate quote, but also the other terms of the loan, including the annual percentage rate, or APR, which includes additional costs of the mortgage not reflected in the interest rate.
Keep in mind that some lenders might have lower closing costs than others, or your current bank might extend you a special price. There’s always some variability between lenders on both rates and terms, so make sure you understand the full picture of each offer, and think through what will suit your situation best.
Second home mortgage FAQ
Additional resources on second home mortgages
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