Millennials and Money – Cheap Rates under Higher Income
Did you know, young buyers are more qualified today than their parents were, and here’s what to know!
Money is half the cost for Millennials than it was for their parents. A $50,000 loan then is the same cost per month as a $100,000 loan now (simple math on lower rates). Also, the percentage of income earned by one millennial is more than their parent(s) earned as a household. So, you put two millennials together (husband and wife or partner) and you have more income than their parent ever had at 1st home ownership.
That’s half the cost of money with likely more than twice the amount of household income. This is driving the median household price way up, and it’s more affordable than before.
We have some really great mother’s to thank, leading new age woman into the workforce and demanding pay at a rate men earn, all GREAT things for real estate! So, call your friends and tell them the kids should buy a home from you!
Last tip of the day regarding a very common client question; “Hey agent, how much are the costs to buy a home?” – Smartest answer; The average cost to buy a home in Chicago, mortgage or not, is 2% and this covers every single penny it takes to own a home; from inspection, to title, attorney and closing. A to Z, all that they will need and this is on the high side.
PS> I miss you, call with your buyers, please!
Chicago Mortgage Broker – Anthony J Marinaccio