La Quinta, California

La Quinta, California
Desert Luxury

Desert Luxury Realty

Thank you for visiting my blog. When you choose Mary Williams, as your real estate agent, you are working with a team of seasoned professionals who cater to your every real estate need. Buying or Selling your home does not need to be full of hassels or needless pressure. Take it easy and enjoy the luxury of the desert. I look forward to assisting you with your search or sell of your home. Contact me today!

Wednesday, May 15, 2013

Purchasing your vacation home in the Desert

Legacy Villas, La Quinta[social] It’s a known fact, once you leave the Desert, you dream of come back and purchasing a home in the Desert. Most times it’s your second or vacation home – a get-a-way from the cold and snow of winter. However, before you start looking at homes, there are some things you may want to keep in mind.

Do you buy your home outright? Or do you finance it? Interest rates on vacation homes tend to be higher than conventional rates, but both are historically low right now. Both 1st and 2nd home interest rates are tax deductible … for now.

If you finance, should you opt for a 15 or 30 year mortgage? Adjustable rate? (Don’t forget we’re just getting out of the Housing crisis – many people had ARM’s.) If there’s a lot of equity on your first home, should you take out a home equity loan on that to pay down your vacation home? All scenarios to discuss with your loan officer before you write an offer or even start your Desert vacation home search.

Second/Vacation home mortgages, along with having higher rates, have more rules than if the purchase was your principal residence. One question the lenders will ask is how will you handle an unexpected financial crisis owning two homes and all their expenses? This will probably require you to detail and explain a lot more of your information than you would for your first home. It’s still a great time to purchase in the Desert and there are great homes on the market right now!