Cheryl K.: Hi everybody. Cheryl Knowlton with Dynamite Productions here with Clay Johnson, Castle and Cooke Mortgage.
Okay, so in episode five now, we’re going to pick up where we left off with episode four.
Clay J.: Yeah.
Cheryl K.: Let’s say I own my home free and clear. I do not have a mortgage and I want to buy a second home, let’s say in Saint George. That would be lovely. Sick of the snow. I’d rather shovel sunshine. So can I, if I own my home free and clear and I want to buy a second home in Saint George and I truly intend to not have that home in Saint George be my primary residence, can I check the first box?
Clay J.: Great question. There is some confusion about that.
Cheryl K.: There is.
Clay J.: Because people will say, “Well it’s really my only mortgage because I have no other mortgage.”
Cheryl K.: Right.
Clay J.: The answer to that is no. You do need to say this is a second home, I do plan on using this as a second home. And this is your true primary residence where you’re spending the majority of your time, you still need to consider it a second home. And there’s really not a strong financial reason to state otherwise, in all honesty. There is a little bit lower down payment options on primary residency, but your interest rate is so darn close …
Cheryl K.: For a second home as opposed to a primary-
Clay J.: For a second home as opposed to a primary, it’s just not worth messing with it.
Cheryl K.: And the [crosstalk 00:01:12] are almost the same.
Clay J.: They are very, very, very similar. Yeah. As I said, the low down payment programs you can’t do, but on pretty much anything else, you’re fine on a second home. And most people that are in that second home, true second homeowner category, are going to have that minimum down payment anyway, so they’ll be in great shape.
Cheryl K.: Absolutely. So hopefully you have learned some great things. Bottom line, take the time to learn how to invest in your own product, in real estate, and develop a pool of rental properties that you can use to develop income while you’re sleeping, while you’re vacationing in St George, or riding your Harley, or doing whatever fun things that you love to do because frankly, you’re not going to want to work forever, even though you love your job.
Clay J.: That’s so true.
Cheryl K.: Absolutely. Okay.
Clay J.: Thanks so much, you guys.
Cheryl K.: We’ll see you next time.
Clay J.: Bye. Bye.