Article: Making your beach dream come true How to finance purchase of that vacation home

Maybe you've come back from vacation along the Gulf Coast, the Caribbean or Southern California, taken a look at your stock gains and decided to take the plunge of buying a vacation home there.

How will you finance the purchase?

If you're able to make a down payment of 20% to 40% of the purchase price, it would make the monthly payments much easier to handle. And if you buy on the water in an area with a good rental history, the rent may cover much of your mortgage cost.

For example, you find a townhouse or apartment fully furnished and with great views for $280,000. Make a hefty 40% down payment and that leaves you with a mortgage of $168,000, which at 8% would mean monthly payments of ...

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