Vacation Homes in Boston – Mortgage Perspective

A vacation home in the Boston area is a major financial commitment so proper analysis of your finances is a must. If you find your financial situation does not allow you to purchase a vacation home, consider purchasing a time share or renting.

To Rent or To Buy?

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Deciding between the two possible options should be made based on the current state of your finances, long term goals, and a detailed study of the positives and negatives of renting and buying. Once this is done, you should be able to make the best decision for your situation.

The Positive Aspects of  Buying a Vacation Home

Vacation homes, especially those in scenic areas, tend to retain their value through good and bad markets. This means that if you decide to sell your house in the future, it will be a relatively easy process and you should be able to get a favorable return on your investment . So if you are looking for a good investment and a place to relax and enjoy yourself, a vacation home might be a good option for you. Additionally, If you do purchase a vacation property, you can always rent it to make some money to repay the mortgage loan and to have another source of income. Moreover, when you own vacation home you have the option that  whenever you feel like taking a vacation, you can simply pack your bags and leave. There will be no hassles as far as accommodations are concerned.

The Drawbacks of Buying a Second Home

The most significant disadvantage of buying a vacation home is that it is likely that you have to take on another mortgage.This will increase your monthly cash outflow, which might leave you financially vulnerable if you lose your job or you have unexpected medical expenses. Remember that you will also have other expenses associated with the vacation home, such as maintenance, insurance, and taxes.

Once you have seen both sides of the argument, based on your unique financial state and goals, make a decision that fits your situation. Most financial advisors recommend to buy a vacation house only if you have sufficient finances to make the monthly mortgage payments without the use of income from renting the house. Additionally, you should be able to contribute to your savings each month so that you have an emergency fund.

The Greater Boston area is chock full of vacation residences in historic areas like Little Italy in the North End, Copely Square in the South End, in historic Charlestown, or even on Boston Harbor. Touch base with a mortgage broker to ensure your finances are ready to go, because these properties go quickly when they’re up for sale.

Phil Ganz (354 Posts)

Philip D. Ganz is a Boston Mortgage Broker and Boston Home Loan specialist. For information, expertise, consulting, or advice about home loans, refinancing mortgages, or commercial property loans, contact Phil with no obligation: 617-529-9317


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