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By Marilyn Kennedy Melia CTW FEATURES Americans de- veloped a voracious appetite for homes during the pandemic, with many going for "seconds" — sparking record-high vacation home purchasing. But in March, vaca- tion home sales dropped "sharply for the second consecutive month," according to Redfin, al- though sales remain up 13% compared to pre- pandemic levels. Now, higher mort- gage rates generally, as well as new fees of between 1.12 and 3.87 of the loan amounts on most second-home mortgages, will dampen the vacation home mar- ket, says Taylor Marr, a Redfin economist. Still, this market isn't about to crater, says Gay Cororaton, a National Association of Realtors economist, since one- half of vacation home- buyers pay cash. Before the fees, most borrowers who needed financing took out a separate mortgage, says Jennifer Beeston, SVP of Guaranteed Rate. The fees, which increase when loan amounts grow closer to the purchase price, are charged in the form of a higher interest rate, Beeston explains. A strategy for bor- rowers with lots of equity in their primary home might find it more economical to tap that equity to pay the fee upfront and lower their interest rate over the life of their second home mortgage, (Any mortgage borrower can pay an amount known as points upfront to lower the loan rate.) Owners with sub- stantial equity in their primary property might take out a cash-out re- finance on that home and use those proceeds to buy a second home, says Matt Hackett of Equity Now in Mama- roneck, N.Y. But if buyers are feeling squeezed fi- nancially, maybe they shouldn't be buying a second home, says Scott Bishop, a Houston, Texas, financial plan- ner. For one thing, if buyers increase the loan amount on their primary, they could risk that home should fi- nancial distress arise. Moreover, Bishop warns against think- ing of a second home as an investment, since maintenance, taxes and other costs usually eat up price apprecia- tion. New vacation-home loan fees complicate purchasing Lenox Homes from page 1 up to a private terrace. Included in all of our residences is a tranquil escape to your terrace or shared residence courtyard for lounging. 210 Lafayette offers five unique open floor plans with unparalleled access to world-class dining, shopping, walking trails and the Lafayette BART Station. Features in- clude two to three bed- rooms, two bathrooms, den/office and two-car parking. The draw to down- town is the proximity to chic boutiques, bistros, services and farmers markets. Attractions include the Lafayette BART Station, the public library, hiking and biking trails, play- grounds, creeks, excel- lent schools, and great grocery store options such as Whole Foods and Diablo Foods. If you enjoy the outdoors, we recommend fre- quently visiting the La- fayette Reservoir with 550 acres of oak wood- land. Lafayette manages to combine the best aspects of the Bay Area, from elevated farm-to- table dining to easy ac- cess to the outdoors and a less frenetic energy. Now scheduling private tours, the new- construction boutique residences are half sold out. Please contact your Lenox Homes sales representative for more information about 210 Lafayette Circle by emailing concierge@ livelenox.com or visit- ing livelenox.com. Content provided by Lenox Homes Welcome to Ellis, a new master- planned community now selling in Tracy. Explore family-friendly neighborhoods paired with a modern lifestyle, featuring out- door social spaces and play- groundsplusaplanneddogpark, aquatic park and on-site market- place with shopping and dining. Follow @LiveAtEllis on Facebook and Instagram for news and up- dates! 59TRACY ELLIS NewHomesfromthe$800,000s EllisTracy.com/New-Homes Welcome to Bristowe - the newest addition to the North Village mas- ter planned community! Bristowe at North Village features single and two story homes ranging in size from approximately 1,815- 3,344 sq. ft. Four different floor plans offer 4-5 bedrooms, 2-4.5 bathrooms, and room options to customize your new home. North Village is close to commute routes, shopping, schools, and recreation. Find your dream home at Bris- towe at North Village! Located at 225 Gannet Street, Vacaville, CA 95688. Open daily 10AM-6PM No waitlist!* (*certain floorplans may be excluded.) 60 VACAVILLE BRISTOWE AT NORTH VILLAGE From the Low $700,000s (707) 474-9918 seenohomes.com Riverchase is a new home com- munity in West Sacramento, featuring a collection of 222 two story contemporary homes wrapped around a private, central park. Homes range in size from 1,559 to 1,835 sq. ft. Riverchase offers close proximity to down- town with the comfort and peace of mind of a quiet suburb. Call to schedule a private walk through. Located at 3131 Bobwhite Court in West Sacramento. 61 WEST SACRAMENTO RIVERCHASE Purchase a Model Home (916) 462-6888 Riverchase.net Welcome to The Tides at Newport, West Sacramento's premier new home community. Find spacious two-story homes ranging in size from approxi- mately 2,377-2,812 sq. ft., with 4-5 bedrooms and 2.5-4 bathrooms. En- joy an ideal setting just minutes from downtown Sacramento, the Sacra- mento River, and the American River. Shopping and dining are just a short walk away at the Southport Town Center, including a Nugget Market. The Tides at Newport is located off I-80 at Lake Washington Blvd. Open daily 10AM-6PM No waitlist!* (*certain floorplans may be excluded.) 62 WEST SACRAMENTO THE TIDES AT NEWPORT From the High $700,000s (916) 572-0636 seenohomes.com Lavender, Crestada & Iris offer single-family home designs with 1,438-2,971 sq. ft., 3-5 bedrooms and options for every stage of life, such as Next Gen®— The Home Within a Home® designs for those in search of extra space. Each home boasts added value with our Everything's Included® program, which adds popular upgrades and features at no ad- ditional cost. 63 WOODLAND LAVENDER, CRESTADA & IRIS From the High $500,000s (916) 304-9711 Lennar.com/Sacramento Reservedfor your New Home C ommunity . ContactSandyLekat slek@bayareanewsgroup.com H6 BAY AREA NEWS GROUP 001 Homes | Advertising Section