Yesterday we received our mortgage papers in the mail and drove over to Fed-Ex to have them notarized. As we flipped through the pages in search of signature flags and notary signs I came across a document called the occupancy affidavit. In essence, it stated that we would need to claim the property as our primary residence within 60 days of closing.
Since the property is our second home the document was clearly false. My husband and I could have signed the papers and closed on our mortgage, but we didn’t. Instead we called the credit union to let them know the loan application was incorrect. The loan officer informed us that loans for second homes cost .25% more than loans for primary residences.
A .25% increase on a $417,000 mortgage will cost us $9729 over the life of the loan.