In Best to Practice Tips, Buying a home, Featured, Home Loans, Practical Financial Tips, Uncategorized

Florida Mortgage loan, Christian Penner,#ChristianPenner, Christian Penner Home Loan Company,#ChristianPennerHomeLoanCompany, Current Mortgage Rates,#CurrentMortgageRates, FHA loan,#FHAloan, FHA loans,#FHAloans, FHA Mortgage Financing Specialist,#FHAMortgageFinancingSpecialist, FHA Mortgage Lenders,#FHAMortgageLenders, FHA VA Financing Specialist,#FHAVAFinancingSpecialist, Harp Refinance,#HarpRefinance, Home Finance Mortgage,#HomeFinanceMortgage, Home Loan,#HomeLoan, Home Loan Company,#HomeLoanCompany, Home Mortgage,#HomeMortgage, Home Mortgage New,#HomeMortgageNew, Lenders Mortgage,#LendersMortgage, Mortgage,#Mortgage, Mortgage Banker,#MortgageBanker, Mortgage Banker West Palm Beach,#MortgageBankerWestPalmBeach, Mortgage Broker,#MortgageBroker, Mortgage Broker Florida,#MortgageBrokerFlorida, Mortgage Broker West Palm Beach,#MortgageBrokerWestPalmBeach, Mortgage Broker West Palm Beach,#MortgageBrokerWestPalmBeach, Mortgage Brokers,#MortgageBrokers, Mortgage Brokers West Palm Beach,#MortgageBrokersWestPalmBeach, Mortgage Companies,#MortgageCompanies, Mortgage Company,#MortgageCompany, Mortgage Lender West Palm Beach,#MortgageLenderWestPalmBeach, Mortgage Lender West Palm Beach,#MortgageLenderWestPalmBeach, Mortgage Lenders,#MortgageLenders, Mortgage Loan Lender,#MortgageLoanLender, Mortgage Loan Lenders,#MortgageLoanLenders, Mortgage Loans,#MortgageLoans, Mortgage Rate,#MortgageRate, Mortgage West,#MortgageWest, Palm Beach Mortgage Broker,#PalmBeachMortgageBroker, Palm Beach Mortgage Broker,#PalmBeachMortgageBroker, Palm Beach Mortgage Company,#PalmBeachMortgageCompany, Real Estate,#RealEstate, Real Estate,#RealEstate, Real Estate Home,#RealEstateHome, Real Estate Home,#RealEstateHome, Real Estate West Palm Beach,#RealEstateWestPalmBeach, Realtor,#Realtor, Realtor West Palm Beach,#RealtorWestPalmBeach, Refinance,#Refinance, Refinance A Mortgage,#RefinanceAMortgage, Refinance Home Loans,#RefinanceHomeLoans, Refinance Mortgage Lenders,#RefinanceMortgageLenders, VA Financing Specialist,#VAFinancingSpecialist, VA Home Loan Expert,#VAHomeLoanExpert, VA Home Loans,#VAHomeLoans, Christian Penner Mortgage Team, #ChristianPennerMortgageTeam, #Mortgage, #MortgageLenderWestPalmBeach, #MortgageBroker, #Home, #RealEstate, #Finance, #Rates, #Loan, #MortgageRates, #HouseHunting, #ForSale, #NewHome, #DreamHome, #Properties,

Is Student Loan Debt A Threat to Homeownership? No!

Over the course of the last thirty years, a shift has happened. An entire generation has been raised to believe that a college education is their key to unlocking opportunities that were not available to their parent’s or grandparent’s generations.

Due to this, student loan debt has soared to $1.5 trillion and represents the largest category of debt, surpassing credit card and auto loan debt in 2010 and never looking back. As more and more Americans continue their education amongst rising tuition costs, this number will no doubt increase.

Many housing experts have blamed student loans for a drop in the homeownership rate for young families, and to an extent, they’ve been right. Increased debt at the time of graduation has no doubt limited young people from being able to afford a home at the same rate as their parents or grandparents did at the same age.

In a recent Forbes article, the author explained that “in just the class of 2017, the average student has about $40,000 in debt — almost enough for a 20% down payment on a median-priced home.”

The Federal Reserve set out to determine exactly how much impact student loan debt has had on the homeownership rate of those 18-34 (millennials). Their results found that,

Every $1,000 in student loan debt delays homeownership by about 2.5 months, but it doesn’t prevent homeownership entirely.

 In fact, by the time college grads reach their 30s, those with student loan debt have a homeownership rate nearly identical to those who didn’t take out loans.” (emphasis added)

In the Wall Street Journal’s coverage of the Fed report, they found that recent graduates prioritize paying off their student loans over saving for a down payment, despite their desire to be a homeowner. Many with debt want to “get that monkey off (their) back (before they) make any new investments.”

This has just delayed the wave of young home buyers from hitting the market. But as Danielle Hale, the Chief Economist at realtor.com warns,

“2020 will be peak millennial, the year when the largest number of millennials will turn 30.”

 By age 30, those who attained a bachelor’s degree right after high school will be one or two years away from paying off their loans and will have been in their career long enough to earn a higher salary.

In the long run, research shows that attaining a bachelor’s degree or more actually increases the chances that someone will become a homeowner.

Bottom Line

If you are one of the many millennials who has prioritized paying down your student loans over saving for a down payment, you’re not alone. Even if you are a couple years away from paying off your loans, let’s get together to help you determine if waiting really is the best decision for you!

 

Source: Click Me

Mortgage Brokers in North Palm Beach FL, Christian Penner Mortgage Team, North Palm Beach FL mortgage lender specializes in conventional, FHA, VA, Jumbo and Reverse Mortgages. Competitive Rates, Apply Today!


 

Questions, Comments or For more information you can call Christian Penner Branch Manager at 561-316-6800 or email us at TheMortgageTeam@ChristianPenner.com

Approval Hotline: 561-316-6800


Helping You Achieve the American Dream of Home Ownership

Or You can click “Call Me” below to call Christian Penner directly using Google Voice


Christian Penner, Branch Manager Mortgage Broker West Palm Beach talks about Real Estate West Palm Beach. He also serves other Local Areas and provides home Mortgage Solutions for Palm Beach Gardens, Jupiter, Boca Raton, Wellington and Tequesta. Christian Penner Mortgage Broker Jupiter has the lowest mortgage rates and the best home mortgage programs like; Jumbo loans, FHA Home Loans, VA Home Loans, Reverse Mortgage Home Loans, Freddie Mac Home Loans, Fannie Mae Home Loans and HARP Mortgage Loans. Christian Penner Mortgage Broker Palm Beach Gardens has Served the area for over 18 years with his Home Loan Lending Needs and Works with The Christian Penner Mortgage Team. Ask Me About A Mortgage, Palm Beach Mortgage Lender, West Palm Beach Mortgage Lender, Palm Beach Gardens Mortgage Lender.

712 U.S. Highway 1 North #300, North Palm Beach, FL 33408

Buyer Referral Hotline: (561) 316-6800

– – –


ChristianPenner.com

https://www.christianpenner.com/is-student-loan-debt-a-threat-to-homeownership-no/

Is Student Loan Debt A Threat to Homeownership? No!

The Christian Penner Mortgage Team | Cell/Text: (561) 316-6800

Recommended Posts