I’ve been putting off plans to buy a second home, but with mortgage rates dropping it might be time to buy

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• Mortgage rates are expected to drop, which means that it might be a good time to buy a second home.

• I would love to offset rising costs by being able to use my primary home as a short-term rental.
• There’s no perfect time to buy a home, so I’m more concerned with whether it feels like a good time.

For years now, my sister and I have been contemplating going in together on a lake home that would serve a triple purpose.

The first and most important reason that we’re considering it is as a family investment in honor of our grandmother. To cover the down payment, we’d be pooling together our share of the money we received when our family sold her home after she passed. We’re pretty sure that Grams — the bedrock of our family — would approve.

Along with a place to remember our beloved grandmother, the house would also serve as a place where our six kids can vacation together regularly. I’m hoping they can create some of those memories that I’m so fond of from growing up closely with my own cousins.

The last reason we like the idea of the lake house is the potential to use it as a way to invest in real estate. I know this is a lofty goal. But I figure with a little research, a lot of patience, and the right timing, we can make it work. When I started looking into buying last year, it turned out not to be the right time for several reasons.

This year, however, may be different, as evidenced by current housing market predictions. Here are three reasons the upcoming months might be a good time for us to put that second home back on the table.

1. There is hope on the horizon for falling mortgage interest rates

I learned last year when I started doing my research that the interest rates on mortgages for second homes tend to be higher than those you would get for a first and/or primary home.

So, while mortgage rates are expected to go down this year for primary homes, mortgage rates for second homes might not fall as equally. Still, the Fed rate cut is already impacting mortgage rates, which could benefit second-home mortgages, as well. I’ll be keeping my eyes peeled.

2. Our own personal costs are rising

It’s risky to count on a monthly income from an investment property. This is particularly true when you’re first starting off. Having said that, my husband and I dipped our toes into the short-term rental business this summer by renting out our primary home while we traveled for the month of June. That little taste went smoothly … and left us wanting more.

Once we get the initial fees out of the way, the hope is that we’ll make some money — along with the memories — off this home by renting it out. Eventually, this infusion of cash would really help with our own rising costs which, as of late, have been never-ending.

3. The emotional factor

My husband and I both turned 41 this year. Our oldest turned 8 years old, our youngest started preschool, and my stepdad retired. Life continues to move at a breakneck speed. I’m ready to start spending time in our lake house — thanks to Grams — as soon as possible.

Barring a big windfall of cash allowing you to buy something outright, there may never be a “perfect” time to buy a home. But with the factors above weighing heavily on my mind these days, you better believe I’ll be paying more attention to my Zillow listing alerts in the next few months.