David Chen is a Certified Financial Analyst with over 10 years of experience in US second-home and vacation-property finance.
Use this free second home mortgage calculator to estimate monthly payments, total interest, and cash-flow impact for US vacation or investment properties with higher rates and stricter LTV rules.
Free Second Home Mortgage Calculator
Second Home Mortgage Formula
Monthly P&I: M = P × r × (1+r)^n / [(1+r)^n – 1]
Gross Rental Income: Daily Rate × Rental Days
Cash-Flow Cover: Net Rent ÷ Monthly Mortgage
Formula Sources: Fannie Mae Second Home Guidelines | Freddie Mac
Variables
- Property Price: Contract price for vacation or investment property.
- Down Payment: 15–25% typical for second-home loans.
- Rental Days/Daily Rate: Optional cash-flow estimate (not underwriting income).
- Interest Rate: Usually 0.25–0.50% above primary-residence rate.
Related Second-Home Tools
- Second Home Affordability Calculator
- Vacation Home Rental Yield Calculator
- Second Home Tax Calculator
- Second Home Refinance Calculator
What Is a Free Second Home Mortgage Calculator?
It estimates monthly P&I for vacation or investment properties with higher rates and stricter LTV rules, plus optional rental cash-flow. Results mirror second-home loan disclosures to the cent.
How to Calculate Second Home Mortgage (Example)
- Enter the property price (e.g. $750,000).
- Input down-payment (e.g. 25%).
- Set term (e.g. 30 years) and second-home rate (e.g. 7.4%).
- Optional: enter expected rental days and daily rate for cash-flow estimate.
- Click “Calculate” for monthly payment, total interest, and rental cover.
Frequently Asked Questions (FAQ)
Can I use rental income to qualify? No—second-home loans use personal income; rental shown for cash-flow planning only.
Is the rate really higher? Yes—typically 0.25–0.50% above primary-residence rate; enter the actual quote you receive.
Are HOA fees included? No—add monthly HOA manually when budgeting total cost.
Is the result official? Matches lender quotes to two decimal places; formal offer requires full underwriting.