Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey.
Bankrate is an independent, advertising-supported publisher and comparison service. We are
compensated
in exchange for placement of sponsored products and services, or when you click on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. However, this compensation in no way affects Bankrate’s news coverage, recommendations or advice as we adhere to strict
editorial guidelines.
Our advertisers do not compensate us for favorable reviews or recommendations. Our site has comprehensive free listings and information for a variety of financial services from mortgages to banking to insurance, but we don’t include every product in the marketplace. In addition, though we strive to make our listings as current as possible, check with the individual providers for the latest information.
|
Bankrate Promise
We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence.
Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover.
How We Make Money
The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you.
Andrew Dehan writes about home loans, real estate and personal finance. He's taken the NMLS Loan Originator education classes and passed the MLO SAFE test. Besides Bankrate, his work has been published by Rocket Mortgage, Forbes Advisor and Business Insider. He’s also a poet, musician and nature-lover. He lives in metro Detroit with his wife and children.
Amelia Buckley is a personal finance editor for Bankrate and an insurance agent with a personal lines license. She emphasizes creating informative, engaging and nuanced content to support readers in making personalized financial decisions with confidence.
Thomas is a well-rounded financial professional, with over 20 years of experience in investments, corporate finance, and accounting. His investment experience includes oversight of a $4 billion portfolio for an insurance group.
In a consulting capacity, he has assisted individuals and businesses of all sizes with accounting, financial planning and investing matters; lent his financial expertise to a few well-known websites; and tutored students via virtual forums.
At Bankrate, we take the accuracy of our content seriously.
“Expert verified” means that our Financial Review Board thoroughly evaluated the article for accuracy and clarity. The Review Board comprises a panel of financial experts whose objective is to ensure that our content is always objective and balanced.
Their reviews hold us accountable for publishing high-quality and trustworthy content.
On Tuesday, June 09, 2026, the national average 30-year fixed mortgage APR is 6.65% according to Bankrate's latest survey of the nation's largest mortgage lenders. Use Bankrate's rate table to compare today's second home APRs.
Mortgage rates have settled into the low-to-mid 6% range for primary residences, and many experts predict they'll remain there into next year despite small spikes early in 2026.
Keep in mind that second-home mortgage rates are typically higher than those for primary residences. That's because they hold more risk — if you’re struggling financially, you’re much more likely to pay the mortgage on the home you live in than the one you vacation in or rent out. For context, the chart below shows current rates you could be quoted for a mortgage on a primary residence.
“Rates on mortgages for second homes might create a little sticker shock,” says Bankrate housing market analyst Jeff Ostrowski. “For that reason, the standard advice about shopping around is especially relevant.”
Bankrate’s mortgage rates include national rate and APR averages; Bankrate Monitor (BRM) National Index rate averages; and “top offers”:
National rate and APR averages: Displayed as daily and weekly averages, these rates and APRs are primarily collected from the 5 largest banks and thrifts across hundreds of markets in the U.S.
Bankrate Monitor (BRM) National Index rate averages: Reported weekly, this long-standing survey collects rates from banks and thrifts across hundreds of markets in the U.S.
“Top offers”: Displayed daily and weekly, these are an average of the rates listed first on our rate tables as advertised by our partners. The averages shown are based on the loan type and term selected.
You can compare national average mortgage rates to top offers to see how much you could save when shopping on Bankrate.
Mortgage rates for second homes are based on a variety of factors, including your:
Creditworthiness: The higher your credit score and the lower your debt-to-income (DTI) ratio, generally, the better your interest rate.For a second-home mortgage, you’ll typically need a credit score of 660 and a DTI of 45% or less.
Loan-to-value (LTV) ratio: The LTV is the ratio of the loan amount to the appraised value of the property. A higher down payment means a lower LTV, a lower risk for the lender, and often, a lower interest rate. Second-home lenders typically prefer a lower LTV, ideally below 80%.
Loan term: The length of the loan also affects the interest rate. Longer terms can translate to higher interest rates.
Property type: Not all properties are created equal in lenders’ eyes. Some condos and co-ops can be difficult to finance, for example. If it’s a property you plan to lease out, the lender might also consider the rental income it generates.
Primary vs. second-home mortgage differences
Americans are buying far fewer second homes these days — only about a third as many as during the pandemic. U.S. buyers took out about 86,600 mortgages for second homes in 2024, which is the lowest amount since 2018 and represents just 2.6% of all mortgages taken out that year, according to a Redfin analysis.
However, if you are one of the borrowers looking to get a second home, here are some important characteristics that distinguish them from primary mortgages:
Primary home
Second home
Down payment
Often as low as 3%–5% with conventional loans
Typically requires at least 10% down
Interest rate
Lower rates than those for second homes
Slightly higher rates than those for primary homes, typically by 0.5%–0.75%
Application requirements
Often 620 minimum credit score for conventional loans, up to 50% DTI, standard income and assets requirements
Typically, 660 minimum credit score, up to 45% DTI (some lenders cap it at 36%), must show the ability to cover both mortgages via income or assets
Mortgage programs
Access to government-backed options in addition to conventional loans (e.g., FHA loan, VA loan)
Not eligible for FHA or VA loan; must use conventional loan, all cash or home equity to purchase second home
Should you get a second-home mortgage?
Whether to take out a second-home mortgage is a personal choice. There are various ways to finance an additional property. Among the options, you could:
Borrow against your investments. If you have a significant portfolio, you might be able to take out a loan against those assets to buy a second home.
Pay cash. If you have the means to do so, then the decision comes down to what kind of deal you can get on a second-home mortgage. If the rate and terms are attractive, then it might make more sense to take out the loan, rather than delete capital or savings.
As with any major financial decision, it’s important to weigh the pros and cons of a second-home mortgage.
Pros of second-home loans
You can get tax deductions. You can deduct the mortgage interest on up to $750,000 of mortgage debt, including both your primary residence and second home (or $375,000 if married filing separately). This applies only to a “qualified” second home, meaning you don’t rent it out, or you rent it out for only a limited period each year. You can also deduct combined property taxes, up to $40,000, starting in tax year 2025.
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 HELOC. It might be better to do a cash-out if you know exactly how much money you need, can get a lower interest rate on your first mortgage and don’t plan to pay that first mortgage off anytime soon.
Cons of second-home loans
It costs more. Generally, you can expect to have a higher mortgage 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.
How to get a second-home mortgage
Get your finances in order
Well before applying for a second-home loan, take steps to maintain or improve your credit score, as well as plan for a down payment. Lenders tend to give the best rates to borrowers with higher credit scores, lower debt-to-income ratios and higher down payments.
Pay down debt
Try to pay off or pay down debts before applying for a second-home mortgage. This will lower your debt-to-income (DTI) ratio, which impacts whether you qualify and your interest rate. Lenders will want to know the full extent of your obligations — home loans, car loans, student debt, medical debt, as well as credit cards and personal loans.
Compare rate quotes
When you’re ready to look for properties, get interest rate quotes from at least three mortgage lenders. You can try a wide variety of lenders, including local banks, online lenders and credit unions. Consider the loan’s APR, or annual percentage rate, which reflects both the interest rate and lender fees and points. What’s more, read customer reviews and see if the lender has won any awards for customer service.
Complete the application and close
Rate-shop with at least three different banks, credit unions and mortgage companies to get the best deal.
Frequently asked questions
The main difference between an investment property and a second home hinges on occupancy: If you personally live in the property for two weeks or less per year, you have a good case for classifying it as an investment, based on IRS guidelines. If you spend more than 14 days in the property each year, it’s a second home.
You can refinance a second-home mortgage, but as with any refinance, it’s crucial to ensure the savings outweigh the closing costs. Because interest rates are higher on a second-home mortgage, it can take you longer to recoup these costs. You might also need more equity in your second home in order to refinance and, as with the initial loan, sufficient cash reserves.
Andrew Dehan writes about home loans, real estate and personal finance. He's taken the NMLS Loan Originator education classes and passed the MLO SAFE test. Besides Bankrate, his work has been published by Rocket Mortgage, Forbes Advisor and Business Insider. He’s also a poet, musician and nature-lover. He lives in metro Detroit with his wife and children.
