Second home purchase

[Keren Adaki]

Hi everyone!

Would really love sound advice. My spouse and I own our home and we would like to buy a second home/vacation home on Marco island. Searching for units facing water located in buildings that allow rentals to offset the cost. We are off in summer and would use the property July and August and rent it otherwise.

So here's my question. Properties on Marco island Florida are not cheap! I don't have the 20% down so I am debating whether to wait another year and save for the 20%, or should we use a jumbo loan and only put 10% down and get a place now??? If I only put 10%, the interest rate will be close to 4% rather than close to 3% (w 20% down). Also I will have to pay PMI POINTS. Do I act now or wait???

Thank you so much!!!

[Luke Carl]

@Keren Adaki

My thoughts

Interest rate difference doesn’t matter.

It sounds like this is every penny you’ve got or at least the ones willing to part with so buying an asset that doesn’t perform is not a good idea. Assuming this won’t perform and it sounds like it won’t.

My advise: Buy a couple of LTRs near where you live and use the profit to pay for your vacations to this place or any other place.