Secondary Residence
What does it mean
Secondary Residence refers to any additional residence owned by a customer that isn’t their primary residence. Typically this would consist of cabins, lake homes or vacation homes.
Why does it matter
Understanding a customer’s secondary residences matter to a banker for a couple of reasons:
- Source of Additional Collateral - It is typically easier to have a customer agree to pledge their secondary residence as collateral on a loan than their primary residence
- Source of Additional Capital - If the borrower were to experience financial trouble, the sale of a secondary residence could be an option to generate additional cash.
Other Relevant Terms
Want to Master Banking's Favorite Ratio?
The Debt Service Coverage Ratio (DSCR) is one of banking's favorite ratios. Want to ace it without breaking a sweat? No problem! We've got some simple, no-fuss pointers that will help you nail this ratio every time. You've got this!
Get the Cheatsheet NowNot Finding What You Are Looking For?
Let me know what terms, ratios or content you want to see covered.
Request Term or Ratio
Am I missing a key term or ratio? Let me know what you want to see covered.
Request Content
Do you have a topic idea you'd like to see covered? Send it my way.
Checkout Courses
Enhance your skills through a deeper understanding of your customers' businesses.
A bit about me
Greetings! I'm Clay Sharkey, and there is nothing I like more than assisting others in achieving their goals. I firmly believe that by enhancing a banker's understanding of their customer's' business, they can provide superior service. This superior service, in turn, leads to stronger relationships for the bank, improved performance for the businesses, and better experiences for our communities. Win-win-win.
