Today's average rate
30-year fixed rate:APR 6.710%
-0.06%
Today
-0.04%
Over 1y
15-year fixed rate:APR 5.959%
+0.06%
Today
+0.02%
Over 1y
5-year ARM rate:APR 7.356%
-0.18%
Today
-0.57%
Over 1y

Compare Today's Second Home Mortgage Rates

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Why do you want a home loan?
Showing: Purchase, Good (720-739), 30-year fixed, Single family home, Secondary residence
Showing: Purchase, Good (720-739), 30-year fixed, Single family home, Secondary residence
License information

4 results:

30-year fixed

Tomo: NMLS#2059741
Tomo
4.0
Lowest APR
Lowest monthly payment
Great for Mortgage rate transparencyConventional 30-year fixed
APR
7.362%
Interest rate
7.125%
Mo. payment
$2,695
Insurance $0
Total fees
$9,324
EXPLORE QUOTEon Tomo
on Tomo
About this lender
Visit lender's website
Pros
  • Special program offers a pricing break for first first-time home buyers.
  • Offers financing options for self-employed borrowers and those without Social Security numbers.
  • Interactive mortgage rates tool takes credit score and location into account.
Cons
  • Purchase loans are not available in all states.
  • Doesn’t offer home equity loans or lines of credit.
  • No refinancing options are available.
TomoTomo: NMLS#2059741
4.0
Lowest APR
Lowest monthly payment
Great for Mortgage rate transparencyConventional 30-year fixed
APR
7.362%
Interest rate
7.125%
Mo. payment
$2,695
Insurance $0
Total fees
$9,324
About this lender
Pros
  • Special program offers a pricing break for first first-time home buyers.
  • Offers financing options for self-employed borrowers and those without Social Security numbers.
  • Interactive mortgage rates tool takes credit score and location into account.
Cons
  • Purchase loans are not available in all states.
  • Doesn’t offer home equity loans or lines of credit.
  • No refinancing options are available.
Simplist: NMLS#1764611
Simplist
4.5
Conventional 30-year fixed
APR
7.876%
Interest rate
7.75%
Mo. payment
$2,866
Insurance $0
Total fees
$4,804
About this lender
Pros
  • Loan origination process can be completed online.
  • Offers government-backed FHA and VA loans.
  • Offers module that compares mortgage rates among other lenders.
Cons
  • Offers loans in many states and Washington, D.C., but not nationwide.
  • Does not offer home equity loans or lines of credit.
SimplistSimplist: NMLS#1764611
4.5
Conventional 30-year fixed
APR
7.876%
Interest rate
7.75%
Mo. payment
$2,866
Insurance $0
Total fees
$4,804
About this lender
Pros
  • Loan origination process can be completed online.
  • Offers government-backed FHA and VA loans.
  • Offers module that compares mortgage rates among other lenders.
Cons
  • Offers loans in many states and Washington, D.C., but not nationwide.
  • Does not offer home equity loans or lines of credit.
Central Bank: NMLS#407985
Central Bank
4.0
Conventional 30-year fixed
APR
8.135%
Interest rate
8.125%
Mo. payment
$2,970
Insurance $0
Total fees
$364
About this lender
Pros
  • Among the best when it comes to online convenience.
  • Offers a full selection of mortgage types and products, including jumbo, home equity, and government loans.
  • Claims to offer preapproval within 24 hours of loan application.
Cons
  • You'll have to complete a loan application to see mortgage interest rates.
  • Bank branch locations limited to the Midwest.
  • Does not offer home equity lines of credit.
Central BankCentral Bank: NMLS#407985
4.0
Conventional 30-year fixed
APR
8.135%
Interest rate
8.125%
Mo. payment
$2,970
Insurance $0
Total fees
$364
About this lender
Pros
  • Among the best when it comes to online convenience.
  • Offers a full selection of mortgage types and products, including jumbo, home equity, and government loans.
  • Claims to offer preapproval within 24 hours of loan application.
Cons
  • You'll have to complete a loan application to see mortgage interest rates.
  • Bank branch locations limited to the Midwest.
  • Does not offer home equity lines of credit.
First Federal Bank: NMLS#408902
Conventional 30-year fixed
APR
8.28%
Interest rate
8.25%
Mo. payment
$3,006
Insurance $0
Total fees
$1,111
About this lender
Pros
  • Over 40% of all loans last year were FHA, VA or USDA loans.
  • Average mortgage rates are on the lower side, according to the latest federal data.
  • Offers 15-, 20-, 25-, and 30-year repayment terms, which is unusually flexible.
Cons
  • No dedicated mobile app for mortgage borrowers.
  • Some loans (including home equity products) are geographically limited.
First Federal BankFirst Federal Bank: NMLS#408902
Conventional 30-year fixed
APR
8.28%
Interest rate
8.25%
Mo. payment
$3,006
Insurance $0
Total fees
$1,111
About this lender
Pros
  • Over 40% of all loans last year were FHA, VA or USDA loans.
  • Average mortgage rates are on the lower side, according to the latest federal data.
  • Offers 15-, 20-, 25-, and 30-year repayment terms, which is unusually flexible.
Cons
  • No dedicated mobile app for mortgage borrowers.
  • Some loans (including home equity products) are geographically limited.

About These Rates: The lenders whose rates appear on this table are NerdWallet’s advertising partners. NerdWallet strives to keep its information accurate and up to date. This information may be different than what you see when you visit a lender’s site. The terms advertised here are not offers and do not bind any lender. The rates shown here are retrieved via the Mortech rate engine and are subject to change. These rates do not include taxes, fees, and insurance. Your actual rate and loan terms will be determined by the partner’s assessment of your creditworthiness and other factors. Any potential savings figures are estimates based on the information provided by you and our advertising partners.


A Beginner’s Guide to Second Home Mortgages
Last updated on September 25, 2024
Written by 
Holden Lewis
Senior Writer/Spokesperson
Jeanette Margle
Edited by 
Jeanette Margle
Lead Assigning Editor
Fact Checked
Kate Wood
Co-written by 
Lead Writer/Spokesperson
Holden Lewis
Written by 
Senior Writer/Spokesperson
Jeanette Margle
Edited by 
Jeanette Margle
Lead Assigning Editor
Fact Checked

What is a second home mortgage?

A second home is sometimes called a vacation home, and a second home mortgage is the loan you use to buy one, or to refinance the loan on one. When you have a primary residence, plus another home where you regularly spend time, the other residence is a second home.

From a lender's perspective, a property counts as a second home if:

  • It's a single-family residence where you stay for some portion of the year.

  • You have exclusive control over it, deciding who stays there, when and for how long.

  • It's suitable for year-round occupancy.

  • It's not a timeshare, nor does a management company control occupancy.

  • You don't rent it out year-round, and you don't use any rental income to qualify for the mortgage.

The requirements are both vague and specific, so let's dig in a little deeper. How long is "some portion of the year"? Well, for the Internal Revenue Service — yes, the IRS — it's 14 days. Rules governing deductions for rental property income also govern what's considered a vacation home versus a rental property. If you reside in the home for at least 14 days during the year, or for more than 10% of the time the property is rented, it's a vacation property.

Beyond what type of home loan you can use to buy the property, this distinction has substantial tax implications. If you're considering buying a second home that you sometimes rent out, you'll probably want to consult a tax pro to understand how the numbers could play out.

If you rent the place out year-round or use rental income to qualify for the mortgage, a lender is likely to consider it an investment property instead of a second home. Investment properties often require bigger down payments, higher credit scores and more cash reserves, and have higher mortgage interest rates than loans for second homes.

How to find today's second home mortgage rates

NerdWallet’s mortgage comparison tool can help you find competitive second home mortgage rates. Enter details about the loan you’re looking for, and you can see rate quotes without providing personal information.

You may find that specifying a larger down payment in the mortgage comparison tool will yield more rate quotes.

How second home mortgages are different

In general, mortgages for second homes require bigger down payments than mortgages for primary residences. To be eligible for purchase by Fannie Mae or Freddie Mac, a second home must have a down payment of at least 10%. But lenders can, and often do, require even bigger down payments than Fannie and Freddie require.

Fannie and Freddie charge higher fees on second home mortgages. Instead of requiring these fees to be paid upfront, lenders usually build the fees into their interest rates. As a result, mortgage rates on second homes tend to be higher.

In most scenarios, you can't buy a second home with a government-backed loan. FHA loans and VA loans are intended to be used for primary residences — someone who is on the mortgage needs to occupy the home year-round.

Using home equity to buy a second home

If the lender requires a big down payment on a second home, you might be able to tap the equity in your primary home to come up with that sum. This would entail borrowing against the equity in your primary residence with a home equity line of credit or home equity loan.

The lender for your second home will require you to show that you can afford to pay all of your debts: the mortgage on the primary home, the home equity loan or credit line and the mortgage on the second home. It's also vital to recognize that borrowing against your home equity puts your primary residence at risk, because if you find yourself unable to pay the loan, your home is the collateral.

Learn more about financing second homes:


About the author: Holden is NerdWallet's authority on mortgages and real estate. He has reported on mortgages since 2001, winning multiple awards.

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30-year-fixed mortgage rates