This Week’s Interest Rates for a Second Home on the Gulf Coast
By Meredith Amon, Licensed in Alabama and Florida
If you are considering purchasing a second home condo on the Gulf Coast, understanding the latest interest rates is essential. Financing for condos differs from single-family primary residences, with rates and discount points varying based on the loan-to-value ratio (LTV) and other lending factors. Below is a breakdown of this week's financing options.
Current Interest Rates for a Second Home Condo Loan
80% Financing (20% Down Payment)
- 7.625% interest rate – 2.125% cost to lock
- 7.75% interest rate – 1.875% cost to lock
- 7.99% interest rate – 1.00% cost to lock
75% Financing (25% Down Payment)
- 7.49% interest rate – 1.75% cost to lock
- 7.625% interest rate – 1.00% cost to lock
70% Financing (30% Down Payment)
- 7.375% interest rate – 1.75% cost to lock
- 7.49% interest rate – 1.50% cost to lock
How These Rates Compare to Primary Residence Mortgages
For reference, Freddie Mac reports the average 30-year fixed mortgage rate for a primary residence (single-family home) currently sits at 6.87% (as of 2/17/2025, per Yahoo Finance). This highlights the fact that second-home condo loans carry higher interest rates, largely due to additional lender risk factors associated with investment and vacation properties.
Ways to Lower Your Interest Rate
If you are looking to optimize your financing, there are ways to adjust your interest rate to better fit your financial goals:
- Pay More Discount Points – This can lower your interest rate by reducing your long-term borrowing costs.
- Increase Your Rate to Lower Upfront Costs – Opting for a higher interest rate can reduce the cost to lock and minimize upfront expenses.
Expert Guidance for Condo Financing on the Gulf Coast
Financing a Gulf Coast condo—especially as a second home or investment property—requires expertise in loan structures, lender restrictions, and financing challenges unique to this market. I work closely with top lender/brokers who specialize in condo loans and understand the nuances of financing in Orange Beach, Gulf Shores, and Perdido Key.
If you are thinking about purchasing a Gulf Coast condo and want to explore your best financing options, I would love to help. Let's find the right property and loan structure to match your goals.
Contact me today to start the conversation.
Meredith Amon
Gulf Coast Expert Real Estate Advisor
Licensed in Alabama & Florida
www.searchthegulf.com
#searchthegulf #meredithamon #becausewelivehere#idx-coastal-alabama#
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