Millennials and Mortgage

Content couple eating pizza on floor

Content couple eating pizza on floorTimes are changing and so are the home buying options for millennials. Home ownership is a big stage to take. It means you are an adult and are responsible for making mortgage payments on your personal palace. A place to make memories with loved ones or witness your company flourishing (if you are acquiring property for business purposes), the investment is an exciting one.

According to Politifact.com, affordable housing is a challenge faced by many. In fact, less than 13% of millennials are proud to be homeowners nationwide. Nonetheless, homeownership options are being made available to millennials. Furthermore, financing is an option that could lead to you making the most important investment of your life.

Why are millennials such an integral component in the mortgage sector?

Everyone craves the American dream and millennials are no different. Home ownership for millennials aged 35 and under is decreasing, but things need to change. Younger people owning homes could mean fantastic things for the economy. Generally, a homeowner will have been born sometime between the 1980’s and mid-2000’s. For a huge chunk of them, now is the time to be starting a family and settling down.

Consider this – millennials account for approximately 80 million people in the U.S. alone. This is the largest population of them all! The more educated they are on the subject of financing, mortgages, and home ownership, the higher the chances of them standing out to a financing option for consideration.

Mortgage Facts Millennials Must Know

If you are on the fence about becoming a homeowner for the very first time, you should be up to scratch on your millennial mortgage knowledge. Property hunters aged in their 30’s are searching for a place to call “home” and this group of real estate-hungry people cannot be ignored. Take the following facts into account to ease your mind about mortgage approval for millennials:

Down Payments need not be huge. Millennials can get a chance at homeownership if they secure the investment by making a down payment on the purchase price.

Buying properties for lower prices could aid you in building equity. This equity can be put towards mortgage adjustments, should you wish to close one deal and start another.

Credit score does affect your eligibility. Nonetheless, there are a few ways in which you can build your credit score to avoid higher interest rates. Start making the smallest of repayments on any bills or outstanding debts you have to improve your chances at securing a home mortgage.

Separating the Myths from the Facts

Instead of becoming perplexed by the whole situation as a millennial in the home-hunting stage, know what is a myth and what is a fact. Below, we debunk some common myths:

Buying is more expensive than renting - No, it isn’t if you think long-term and select a low interest rate mortgage.

Payment for buying is higher - Not necessarily; some flexible loans have small starting interest rates.

The process is complicated – This is what financing experts are there for. They will guide you through the process seamlessly.

Since millennials are the biggest group of potential homebuyers out there right now, understanding what financing options are available is essential. In order for this to be achieved, not only do they need to be on top of their finances but also, they ought to proactively engage with lenders who can convince them to make that all-important transaction.

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Why You Should Buy Your New Home Instead of Renting

Why You Should Buy Your New Home Instead of Rent

Why You Should Buy Your New Home Instead of RentWhether you’re considering relocating across town or across the country, you’ll be making one major decision about your living arrangements: buying a new home or renting. Signing a lease is certainly convenient in that there are fewer worries about maintenance or repairs. You simply contact your landlord, and he or she will solve problems according to the lease. But convenience isn’t the only factor, as you’ll see when you look at the many reasons buying is a better option for most people.

You’re making an investment that increases in value. Real estate has an excellent return on investment as compared to other assets, even if you do nothing to the place. But there’s more incentive to improve upon it when that property is the house you live in – and when you renovate, you add value. Typically, you’ll gain more than what you put into home improvements and you’ll reap the rewards when you sell.  (more…)

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Your Next Home: Renting vs Buying

paramount-equity-rent-vs-bu

Renting vs Buying  -Paramount Equity®The decision to purchase a home is one of the biggest financial decisions most families or individuals will make in their lifetime. Purchasing a home can mean substantial savings over the homeowner’s lifetime, but homeownership also means significant costs such as maintenance, insurance and taxes. For these reasons, it is important that everyone makes sure they are ready to buy a home before deciding to buy. Considering the pros and cons of renting and buying is the best way to do this.

The Renting vs Buying (more…)

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Buying vs. Renting

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BBuying vs. renting a home is the age old debate. Any homeowner may tell you that renting is a waste of money. Any renter will tell you when you buy you’re stuck in one place and you better learn how to use a wrench. Both of these opinions are right in their own way. However, the one which is more pleasant to you depends on where you are in your life now. If you are debating buying vs. renting a home, here are the pros and cons of each.

Renting

Renting is transient. Yes, many people, especially in big cities, will rent for years. However, at the end of every lease term you can go. With renting you can leave. If you are just starting out in your career and you are not sure if you will be required to travel in order to climb the (more…)

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5 Reasons to Rent Instead of Buy

5 Pros to Renting instead of buying

Many people wish to own their dream home and make that home an inspiration as they continue to live their lives. However, there are cases where renting a home is more practical than buying one. In choosing to get a house, here are 5 reasons to rent instead of buy: 

1. Costs Less 

Topping the 5 reasons to rent instead of buying a house is the financial matter – it costs less. A homeowner is expected to pay 78 percent more than a renter in monthly expenses. Indeed, renting oftentimes costs less than home purchasing. An old myth says that you throw your money away in renting. While you are renting, money does not go back to you but you get something from it – a house to live in.  (more…)

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