What counts as a second home
A second home is a property you use yourself for part of the year, such as a beach house or a place near family. It is not your main residence, and it isn't primarily a rental. Lenders treat it differently from an investment property, which is usually a better deal for you.
The difference matters because second-home pricing is usually closer to a primary home than to a rental.
What lenders look for
- A home that is a reasonable distance from your primary residence, or suited to vacation use
- Personal use, not full-time rental or management by a rental company that controls occupancy
- A one-unit home that you can use year-round
- Enough equity and cash reserves to show you can carry two housing payments
Why pricing can be a little higher
Lenders see a bit more risk in a home you don't live in full-time. Extra pricing adjustments can apply to second homes, so compare the full cost of each offer, not just the rate. Strong credit and more equity can help offset some of that cost.
Occupancy rules matter
When you refinance, you'll certify how you use the home. Occasional short-term rental may be allowed by some programs, but if the home is mainly a rental, it is likely an investment property instead. Be accurate: occupancy affects your loan terms, and misstating it can cause serious problems.
Your refinance options
- Rate-and-term refinance to lower your rate or change your term
- Cash-out refinance, usually with tighter limits than on a primary home
- A fixed-rate home equity loan, which keeps your current mortgage in place
Tapping equity in a second home
CapCenter's home equity loans are available on single-family second homes as well as primary residences. They are fixed-rate, from $50,000 to $250,000, with 15, 20 or 30-year terms. How much you can borrow depends on the loan type and purpose, and a loan consultant can tell you yours.
Refinancing with CapCenter
CapCenter finances second homes. Ask your loan consultant whether ZERO Closing Costs applies to your second-home refinance (restrictions apply). Home equity loans on second homes come with ZERO Closing Costs (restrictions apply; see Offer details). You need a credit score of at least 620 for a CapCenter loan.
