One of my favorite reasons to work with millennial buyers is they are educated! They grew up in a time where information was immediately available to them via the web and they quickly became the leading generation for finding the answer if they didn’t have it. They want a full picture of what their monthly bottom line looks like b/c they were becoming adults during the boom & the crash that riddled our market not so long ago. Of course, the other reason I love working with Millennials is that they are my people, my generation!
Millennials have gotten the short end of the stick in terms of housing and purchasing their first homes often because the amount of student debt that they carry. They are a higher-educated generation with a the majority attending college and a bitter consequence is the cost of that education. As their careers & families are growing so are interest rates!
However, Millennials have OPTIONS, when it comes to financing to combat rising interest rates in keeping their payments lower. In additional to several state & federal programs available for down payment & closing cost assistance (they are still out there!), new traditional products are coming out all of the time and one of my favorites, lately, is the 3% Down Conventional Loan Product available only to 1st Time Home Buyers.
On an average purchase price of $275,000 in the Northeast Florida Real Estate Market with a 5% interest rate (approx 700 credit score) it can provide a Savings of approx $6,019.06 just in down payment/upfront costs (hey, that is a washer & dryer, new fridge, luxury vacation AND your 1st months payment in SAVINGS!). Monthly savings also add up of approx $58/month in monthly payment costs due to a lower MI or Mortgage Insurance Premium when compared to an FHA or Government-insured loan.
A HUGE THANKS to Scott Neeley, NMLS#159824, with FirstOption Mortgage for putting these numbers together for us and keeping our clients educated! Curious as to what you could qualify for? Contact Scott here: scottneeley.com