MortgagesUndressed

It was reported by the NAR that last year approximately 25% of home sales were for second homes.

I didn’t buy it. Interest rates for second homes are typically the same as a primary residence. Rates for rentals, investment homes are higher.I believe we had liar buyers. Borrowing as a second home with plans to rent out the little pearl.

It is harder to make things pencil now. People that are buying second homes are fewer because they really are buying as second home. The others have gone somewhere else to invest.

I think you could call it fraud, if you told the bank it was a second home, and lied to get a lower rate on a rental property.

So what should you do? Kick the renters out.

The question is, where are they investing now? Blogs?

Larry Cragun