🏡 Second Home Purchase Calculator

Comprehensive analysis for informed buying decisions

Autosave on
WNC Mortgage Advisor Tool
FOR EDUCATIONAL AND ILLUSTRATIVE PURPOSES ONLY. This tool provides estimates based on figures you enter — it is not a Loan Estimate, loan application, pre-qualification, pre-approval, commitment to lend, or offer to extend credit, and the outputs are not the disclosures required under the Real Estate Settlement Procedures Act (RESPA/Regulation X) or the Truth in Lending Act (TILA/Regulation Z). Interest rates shown are not APRs and all figures are estimates that may not reflect your actual loan terms. Your official Loan Estimate — with your actual, legally required terms and costs — will be provided within three business days after you submit a loan application. See full disclosures below. Equal Housing Lender.
🏷️ Property Details
20%
7.250%
Note rate is a hypothetical input, not a quoted rate. It is a simple interest rate, not an Annual Percentage Rate (APR). The APR — which includes certain fees and is used for comparison — is disclosed on your Loan Estimate and is typically higher.
🏠 Monthly Expenses
0.75%
Drag the rate slider, or type an annual dollar amount to override.
Vacation/second homes typically run 15–25% higher than primary
Second homes: 0.5–1.5% annually. Auto-applies if down <20%.
📊 Loan Summary
Purchase Price
$0
Loan Amount
$0
Down Payment
$0
PMI Required
No
≥20% down
💵 Monthly Payment Breakdown
Total Monthly PITIA
$0
$0 annually
Principal & Interest$0
Property Taxes$0
Homeowners Insurance$0
Flood Insurance$0
HOA Dues$0
PMI$0
Total Monthly$0
Principal & Interest0%
Property Taxes0%
Insurance + Flood0%
HOA + PMI0%
🔢 Loan Metrics
Loan-to-Value
0%
Total Interest Paid
$0
Break-Even on Pts
—
Conforming Limit
$806,500
True cost of ownership goes far beyond PITI. Second homes carry higher vacancy costs, deferred maintenance risks, and travel overhead that primary residences don't. This section captures everything.
🔧 Maintenance & Upkeep Inputs
1.5%
Industry standard: 1–2% of home value annually. Older/rural homes: up to 3%. Type a dollar amount to override.
Enter % of rental income, or 0 if self-managing
2 mo
Total furnishing cost ÷ 10 years is a reasonable annual figure
📊 Annual Cost Summary
Total Annual True Cost
$0
$0/month
🏦 Mortgage & Insurance
PITIA (annual)$0
🔧 Ownership Costs
Maintenance & Repairs$0
Utilities (vacant months)$0
Utilities (occupied months)$0
Landscaping / Upkeep$0
Pest Control / Inspections$0
Furnishing (amortized)$0
✈️ Use & Lifestyle Costs
Annual Travel$0
Other Annual Costs$0
Grand Total (Annual)$0
💡 Cost Per Personal Use Day
Cost Per Night Used
$0
vs. renting locally
Carrying Cost / Day
$0
365 days / year
Annual Non-Mtg Costs
$0
Beyond mortgage
Cost as % of Value
0%
Full ownership cost
🏨 Rental Income Inputs
55%
STR market avg varies widely. WNC mountain markets: 50–65%.
30 days
4 nights
STR management typically 15–30%. Enter 0 if self-managing.
📊 Rental Income Analysis
Gross Annual Income
$0
Net Operating Income
$0
Annual Cash Flow
$0
Monthly Net
$0
Gross Rental Revenue$0
Cleaning Fees Collected$0
Platform Fees$0
Cleaning Costs Paid$0
Property Management$0
STR Supplies & Permits$0
Net Operating Income$0
Less: Annual PITIA$0
Less: Maintenance/Other$0
Net Annual Cash Flow$0
🎯 Key Rental Metrics
Gross Yield
0%
Gross income / price
Cap Rate
0%
NOI / price
Cash-on-Cash Return
0%
Cash flow / down pmt
GRM
0
Price / gross rent
Break-Even Analysis
Nights needed to break even (PITIA only)—
Nights needed to break even (all costs)—
Revenue per available night$0
Available rental nights/yr0
Booked nights/yr (projected)0
👤 Borrower Financial Profile
Auto-calculated from annual, or override here
For investment properties: lenders typically credit 75% of gross rents. For second homes: $0 credit.
✅ Qualification Analysis
Not a credit decision. This is a self-guided estimate based only on the figures you entered. It is not a pre-qualification, pre-approval, or commitment to lend, and it does not involve a credit review or verification of income, assets, or debts. Actual eligibility is determined by a lender after a full application and underwriting. All applicants are considered without regard to race, color, religion, national origin, sex, marital status, age, or other basis prohibited by the Equal Credit Opportunity Act.
Front-End DTI
0%
Housing only
Back-End DTI
0%
All debts
Reserve Coverage
0 mo
Months of PITIA
Estimated DTI Fit
—
Income Requirements
Income to qualify (28% front)$0
Income to qualify (43% back)$0
Income to qualify (45% back)$0
Your monthly gross income$0
Monthly surplus / gap$0
📋 Second Home Requirements
Fannie Mae / Freddie Mac Second Home Rules:
• Must be occupied by borrower for some portion of the year
• Cannot be subject to rental agreements, timeshare arrangements
• Must be suitable for year-round occupancy
• Cannot be located in same market as primary residence (same city may be disqualified)
• Minimum 10% down payment (conventional)
• Rate premium: typically +0.25% to +0.75% vs. primary
• Reserves: typically 2–6 months PITIA required
Reserve Requirements
Minimum reserves required (2 mo)$0
Recommended reserves (6 mo)$0
Your available reserves$0
Reserve status—
⚙️ Return Assumptions
10 yrs
WNC mountain markets have historically averaged 4–7% annually
Pulls from Rental tab automatically — or override here
Long-term: 0%, 15%, or 20% depending on income. Second homes don't qualify for §121 exclusion.
📈 Return Scenarios
🐻 Bear Case
$0
equity: $0
📊 Base Case
$0
equity: $0
🐂 Bull Case
$0
equity: $0
Base Case Detailed Returns
Future Property Value$0
Remaining Loan Balance$0
Selling Costs$0
Net Sales Proceeds$0
Cumulative Rental Cash Flow$0
Total Invested (down + closing)$0
Total Profit$0
Total ROI0%
Annualized Return0%
🏗️ Equity Build Over Time
Year Home Value Loan Balance Equity Equity %
⚙️ Closing Cost Inputs
This is an estimate, not a Loan Estimate. The figures below are typical ranges for illustration only and are not the itemized, legally binding costs disclosed under RESPA/TILA. Your official Loan Estimate — issued within three business days of a completed application — and your Closing Disclosure will contain the actual costs. Third-party service providers and their fees are shown for planning only; you may shop for many of these services and are not required to use any provider referred to you.
Leave blank to total the itemized costs below, or enter a single lump-sum figure to override them.
Typically 0.5–1% of loan amount
Each point = 1% of loan; reduces rate ~0.25%
NC: $1 per $500 of price (buyer pays). Varies by state.
15 days
📊 Closing Cost Breakdown
Total Cash Needed to Close
$0
Loan Costs (Section A)
Origination Fee$0
Discount Points$0
Appraisal Fee$0
Credit Report$0
Title & Government (Section B/C)
Title Search & Exam$0
Lender's Title Insurance$0
Owner's Title Insurance$0
Attorney / Settlement$0
Recording Fees$0
Transfer / Excise Tax$0
Due Diligence
Survey$0
Home Inspection$0
Pest / WDI Inspection$0
Prepaids & Escrow
Prepaid Insurance$0
Prepaid Property Taxes$0
Prepaid Interest$0
Other$0
Total Closing Costs$0
Down Payment$0
Total Cash to Close$0
📐 As % of Purchase Price
Closing Costs0%
Cash to Close0%
Rule of thumb: Budget 2–5% of purchase price for closing costs. Second homes at top of range due to additional underwriting.
Not tax, legal, or accounting advice. These are simplified, general illustrations based on the figures you entered and assumptions that may not apply to you. Tax rules change and depend on your full circumstances. Consult a qualified CPA or tax advisor before relying on any figure here for a purchase, tax, or financial decision.
⚙️ Tax Profile Inputs
NC flat rate: 4.5% (2024)
SALT cap: $10,000 (MFJ/Single). Enter any existing SALT you're already using.
Exclude land value (~20% of purchase price typical)

📏 The 14-Day / 10% Rule (IRS Master Key)

This rule determines how your property is classified for tax purposes — and it changes everything.

Personal Days
0 days
Rental Days
0 days
10% Threshold
0 days
Classification
—
💰 Tax Scenario Analysis
Scenario A: Pure Second Home (no rental / <15 days rented)
Rent <15 days/yr → all rental income is tax-free. Can't deduct rental expenses but can deduct mortgage interest + property taxes (subject to limits).
Mortgage Interest Deduction$0
Property Tax Deduction (SALT capped)$0
Total Itemized Deductions$0
Standard Deduction$0
Benefit Over Standard$0
Federal Tax Savings$0
Scenario B: Mixed Use (rental + personal, >14 days personal)
Expenses must be prorated. Interest + taxes: split. Operating expenses: rental portion only. No loss allowed against ordinary income (passive activity rules may apply).
Gross Rental Income$0
Rental Expense Allocation %0%
Deductible Mortgage Interest (rental %)$0
Deductible Property Tax (rental %)$0
Depreciation Deduction$0
Net Rental Income / Loss$0
Scenario C: Investment Property (≤14 days personal use)
Full deductibility of all operating expenses against rental income. Passive losses may offset other passive income. Depreciation deduction available.
Depreciation Annual Deduction$0
Annual Depreciation Tax Shield$0
Total Deductible Expenses$0
Net Taxable Rental Income$0
Monthly P&I
$0
Total Payments
$0
Total Interest
$0
Interest as % of Loan
0%
📅 Annual Amortization Schedule
Year Beginning Balance Annual Principal Annual Interest Total Paid Ending Balance Equity Equity %

Important Disclosures

Please read before relying on any figure in this tool. This calculator is provided solely as an educational and illustrative resource. Every number displayed is a hypothetical estimate generated entirely from the figures you enter, using simplified assumptions that may not reflect current market conditions, available loan programs, or your individual circumstances. Use of this tool does not constitute a loan application, inquiry, pre-qualification, pre-approval, rate quote, rate lock, credit decision, or a commitment or offer to lend by any lender; no credit report is pulled, no information you enter is transmitted, collected, or reviewed by anyone, and no lender-borrower relationship is created. Interest rates shown are hypothetical inputs, are not Annual Percentage Rates (APR), and are not guaranteed or available; your actual rate, APR, payment, fees, and cash to close are determined only through underwriting and are disclosed on your official Loan Estimate, provided within three business days of a completed application, and your Closing Disclosure, provided at least three business days before consummation. Nothing in this tool is tax, legal, investment, or accounting advice; consult your own licensed advisors before making any financial decision. All loans are subject to credit approval, program guidelines, and property eligibility; programs, rates, terms, and conditions are subject to change without notice, and not all applicants will qualify. Equal Housing Lender.

Illustrative estimate only. This calculator is an educational tool. Every result is a hypothetical estimate generated from figures the user enters. It is not a Loan Estimate, Good Faith Estimate, Closing Disclosure, loan application, pre-qualification, pre-approval, rate lock, credit decision, commitment to lend, or an offer or advertisement to extend credit on any particular terms. Nothing here creates a lender-borrower relationship or obligates any lender to make a loan.

Not the required federal disclosures. The outputs are not the disclosures required by the Real Estate Settlement Procedures Act (RESPA / Regulation X, 12 C.F.R. Part 1024) or the Truth in Lending Act (TILA / Regulation Z, 12 C.F.R. Part 1026). If you apply for a mortgage, you will receive a Loan Estimate within three business days of a completed application and a Closing Disclosure at least three business days before consummation. Those documents — not this tool — contain your actual, legally governed rates, APR, fees, and cash to close.

Rates and APR. Interest rates entered or shown are hypothetical, are provided solely to run scenarios, and are not Annual Percentage Rates (APR). They are not rate quotes and are not guaranteed or available. Actual rate, APR, points, payment, and terms depend on the property, loan program, market conditions, and a complete review of your credit, income, assets, and documentation. The APR (which reflects certain finance charges and is used to compare offers) will appear on your Loan Estimate.

Your right to shop. Third-party charges shown (e.g., title services, settlement/closing, appraisal, inspections, property management) are estimates for planning. For many settlement services you may shop for and select your own provider. You are not required to use any provider referred to you, and no referral in connection with this tool is made in exchange for a fee or thing of value.

Fair lending. Credit is offered without regard to race, color, religion, national origin, sex, marital status, age (provided the applicant has the capacity to contract), receipt of public assistance income, or the good-faith exercise of rights under the Consumer Credit Protection Act, consistent with the Equal Credit Opportunity Act (ECOA) and the Fair Housing Act.

No tax, legal, investment, or accounting advice. Tax, return, and investment figures are simplified general illustrations, not advice, and outcomes are not guaranteed. Consult your own licensed tax, legal, and financial advisors before making any decision.

⌂ EQUAL HOUSING LENDER / EQUAL HOUSING OPPORTUNITY Verify any mortgage professional at nmlsconsumeraccess.org

Programs, rates, terms, and conditions are subject to change without notice and to underwriting approval. Not all applicants will qualify. This is not a commitment to lend. Estimates are for educational purposes only.