Compare second home mortgage rates
Written by
,
Updated on Sep 15, 2025
On Monday, September 15, 2025, the national average 30-year fixed mortgage APR is 6.39% according to Bankrate's latest survey of the nation's largest mortgage lenders. Use Bankrate's rate table to compare today's second home APRs.
Current second home mortgage rates
Mortgage rates have settled into the 6 percent range. Housing economists say any dramatic downward move is unlikely, but rates could still decline from the tight range they've held for much of the year.
Keep in mind that second home mortgage rates are typically higher than primary residence interest rates. That's because they hold more risk — if you’re struggling financially, you’re much more likely to pay the mortgage on the home you live in than the one you vacation in or rent out. For context, the chart below shows current rates you could be quoted for a mortgage on a primary residence.
“Rates on mortgages for second homes might create a little sticker shock,” says Bankrate housing market analyst Jeff Ostrowski. “For that reason, the standard advice about shopping around is especially relevant.”
National mortgage rates by loan type
| Product | Interest Rate | APR |
|---|---|---|
| 30-Year Fixed Rate | 6.32% | 6.39% |
| 15-Year Fixed Rate | 5.53% | 5.63% |
| 30-Year Fixed Rate FHA | 6.36% | 6.42% |
| 30-Year Fixed Rate VA | 6.42% | 6.47% |
| 30-Year Fixed Rate Jumbo | 6.42% | 6.47% |
Rates as of Monday, September 15, 2025 at 6:30 AM
Factors that influence second home mortgage rates
Mortgage rates for second homes are based on a variety of factors, including your:
- Creditworthiness: A higher credit score and a lower debt-to-income (DTI) ratio yield a better interest rate. For a second home mortgage, you’ll typically need a credit score of 660 and a DTI of 45 percent or less.
- Loan-to-value (LTV) ratio: The LTV is the ratio of the loan amount to the appraised value of the property. A lower LTV indicates a lower risk for the lender, which can lead to a lower interest rate. Second-home lenders typically prefer a lower LTV, ideally below 80 percent.
- Loan amount and term: The amount and length of the loan also affect the interest rate. Higher loan amounts and longer terms can translate to higher interest rates.
- Property type: Not all properties are created equal in lenders’ eyes. Some condos and co-ops can be difficult to finance, for example. If it’s a property you plan to lease out, the lender might also consider rental income it generates.
Primary vs. second home mortgage differences
Americans are buying far fewer second homes these days — only about a third as many as during the pandemic. U.S. buyers took out about 86,600 mortgages for second homes in 2024, which is the lowest amount since 2018 and represents just 2.6 percent of all mortgages taken out that year, according to a Redfin analysis.
However, if you are one of the borrowers looking to get a second home, here are some important characteristics that distinguish them from primary mortgages:
| Primary home | Second home | |
|---|---|---|
| Down payment | Often as low as 3%–5% with conventional loans | Typically requires at least 10% down |
| Interest rate | Lower rates than those for second homes | Slightly higher rates than those for primary homes, typically 0.5%–0.75% higher |
| Application requirements | Often 620 minimum credit score for conventional loans, up to 50% DTI, standard income and assets requirements | Typically, 660 minimum credit score, up to 45% DTI (some lenders cap it at 36%), must show the ability to cover both mortgages via income or assets |
| Mortgage programs | Access to government-backed options in addition to conventional loans (e.g., FHA loan, VA loan) | Not eligible for FHA or VA loan; must use conventional loan, all cash or home equity to purchase second home |
Should you get a second home mortgage?
Whether to take out a second home mortgage is a personal choice. There are various ways to finance an additional property. Among the options, you could:
- Tap the equity in your primary residence. A home equity loan or home equity line of credit (HELOC) are ways to pull money out of your home.
- Borrow against your investments. If you have a significant portfolio, you might be able to take out a loan against those assets to buy a second home.
- Pay cash. If you have the means to do so, then the decision comes down to what kind of deal you can get on a second home mortgage. If the rate and terms are attractive, then it might make more sense to take out the loan, rather than delete capital or savings.
As with any major financial decision, it’s important to weigh the pros and cons of a second home mortgage.
Pros of second home loans
- You can get tax deductions. You can deduct the mortgage interest for both your primary residence and second home up to $750,000 (or $375,000 if married filing separately). This applies only to a “qualified” second home, meaning you don’t rent it out or rent it out but also use it yourself for a certain period each year. You can also deduct combined property taxes up to $40,000, starting in tax year 2025.
- You can use your primary residence to help pay for it. You can take advantage of the equity in your primary residence to make a down payment on a second home, either through a cash-out refinance or HELOC. It might be better to do a cash-out if you know exactly how much money you need, can get a lower interest rate on your first mortgage and don’t plan to pay that first mortgage off anytime soon.
Cons of second home loans
- It costs more. Generally, you can expect to have a higher mortgage rate on your second home loan compared to the one on your primary residence, so you’ll pay more in interest over time. You might also have a higher rate if you decide to refinance your second home mortgage down the line. Along with that, you’ll need to make a bigger down payment.
- It can be harder to qualify for. Because the second home isn’t your primary residence, you’ll need to meet stricter credit and DTI ratio requirements.
How to get a second home mortgage
- Get your finances in order: Well before applying for a second home loan, take steps to maintain or improve your credit score, as well as plan for a down payment. Lenders tend to give the best rates to borrowers with higher credit scores, lower debt-to-income ratios and higher down payments.
- Pay down debt: Before applying for a second home mortgage is a good time to pay off or pay down debts. Understanding and lowering your debt-to-income (DTI) ratio, which impacts whether you qualify and your interest rate, can result in a better mortgage offer. Lenders will want to know the full extent of your obligations — home loans, car loans, student debt, medical debt, as well as credit cards and personal loans.
- Compare rate quotes: When you’re ready to look for properties, get second home interest rate quotes from at least three mortgage lenders. You can try a wide variety of lenders, including local banks, online lenders and credit unions. Consider the loan’s APR, or annual percentage rate, which reflects both the interest rate and any lender fees and points. What’s more, read customer reviews and see if the lender has won any awards for customer service.
- Complete the application and close: Once you’ve been preapproved, find the second home you want to buy and put in a good offer. If your offer is accepted, choose the lender you want to go with and apply. You’ll need to go through underwriting and get an appraisal, like you did with buying your first home. Then, if all goes well, you can close on the property and get the keys.
Second home mortgage FAQ
Additional resources on second home mortgages
Andrew Dehan writes about home loans, real estate and personal finance. He's taken the NMLS Loan Originator education classes and passed the MLO SAFE test. Besides Bankrate, his work has been published by Rocket Mortgage, Forbes Advisor and Business Insider. He’s also a poet, musician and nature-lover. He lives in metro Detroit with his wife and children.
Expertise
- Mortgages
- Mortgage refinance
Mortgage rates in other states
- United States
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- Washington DC
- West Virginia
- Wisconsin
- Wyoming