Rethinking Mortgages: How to Avoid Costly Traps When Buying a Second Home or Downsizing

A common consideration for people living in colder climates is purchasing a second home in a warmer region to escape the winter months. However, in March 2022, the Federal Reserve began increasing interest rates to combat inflation. This move caused many potential buyers to hit pause on their plans for a second home. Recently, on September 18, 2024, the Fed announced its first rate cut, lowering the Federal Funds rate to 4.75%-5%, marking a half-percent decrease. Mortgage rates, which had soared as high as 8%, are now starting to come down. As a result, more people are reconsidering downsizing or purchasing that second home.

At the same time, there has been a rise in aggressive sales tactics from mortgage lenders. To help navigate these waters, I invited my friend Frank Ellerbroek, a seasoned mortgage broker, to join today's podcast. He’ll share his insights on the current market trends and offer advice on what to watch out for if you're thinking of financing a second home or downsizing to a more manageable property.

On a personal note, Frank and I have been friends for nearly 20 years, and my firm has referred many clients to him over the years. I trust him because he consistently delivers great service, and I  worked with Frank when I purchased my home. That said, whether you're considering working with Frank or someone else, I always recommend talking to more than one professional to ensure you get the best terms for your unique situation.

https://vantagemortgagegroup.com/about-us/meet-the-team/frankellerbroek/

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