A: Vacation homes can be a great place to make memories with your kids and grandkids, but they can also be a major expense and time commitment. Most buyers will need to come up with a hefty down payment because many banks require 25-35% down on vacation and rental properties, charge higher interest rates, and require a higher credit score. In addition, homeowner’s insurance tends to be more expensive (typically by 20-30%) because these homes are at a greater risk for damage or theft, and are usually in earthquake, hurricane, or flood zones. However, you can make a hefty bit of money back by renting out the property. The average vacation home owner rents out his or her property an average of eighteen weeks a year. For more on this topic, read: Vacation Home – Considerations Before You Purchase.