In Minnesota, lake life is a dream for many during the summer. A cabin or vacation property is fun for all, unlike your primary home where you pay bills or do homework at the dining room table.
At the cabin, you fish, ski, sit on a porch, build bonfires, eat s’mores, and enjoy the call of loons.
Currently, the incredibly low-interest rates are motivating many people to take advantage of the opportunity to purchase a cabin or vacation property in Minnesota.
Now is a Great Time to Pursue Your Lake House Dream
From an economic standpoint, housing experts watching the market think that the economic uncertainty over spiking coronavirus cases may keep mortgage rates down for a while. The number one driver of mortgage rates is the Fed, and currently, the Fed’s stance is to keep interest rates low. Lawrence Yun, Chief Economist of the National Association of Realtors, says, “We will see mortgage rates stay near this level for the next 18 months because of the significance of the Fed’s stance.”
So, if you’re ready to begin your search for a place for your family to get away, here are a few tips to get you started.
Get pre-approved. Doing this early will give you a better idea of how much you can finance for your home, which is helpful once you begin shopping for houses.
Search for a property within 2-3 hours of home. Staying within this range will make it easier for you to get there, and you will likely use it more. Nobody wants to spend their precious weekend time in the car!
If you’re on a budget, consider a home with lake access instead of lakefront property. They are usually less expensive than homes located directly on the water, and they typically have lower taxes.
Hire a realtor who specializes in vacation properties. Many times, they have inside knowledge of properties not currently on the market but coming soon, and can also provide valuable insight, from the cleanest lakes to best fishing lakes, winter road clearing, and building permits.
From a financing standpoint, the current low rates increase affordability for buyers, so it’s a great time to pursue your vacation home dream. Contact us to help you get started financing your vacation home today!