Higher Fees Coming April 1 for Second Homes!

If you are thinking of buying a second home, a vacation home, then you will save yourself a lot money if you make your purchase before April 1, 2022.

The increased fee for a second home will range from 1.125% to 3.875% of the purchase price — depending on how much you put down. Wowzers!

If your second home is $300,000 and you put the minimum down, you will pay an additional $11,625!
(3.875% of $300,000)

Best case with 25 percent down, is an increase of $3,375.

In lieu of paying the extra cash up front, you can choose to take a higher interest rate. Or split the difference with some additional upfront and a higher rate. Your mortgage broker can give you specific options as rates change daily.

This is a clear and loud message that the Federal Housing Finance Agency wants to slow down the purchasing of second homes while there are still so many people who have not yet purchased their first home. At least, that is my take on it.

Realtors, if you have clients on the fence about buying a second home, now is the time to light a fire for them to take action now.

You can read more detail about this change coming here.

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