- “The majority of millennials said they consider owning a home more sensible than renting for both financial and lifestyle reasons — including control of living space, flexibility in future decisions, privacy and security, and living in a nice home.”
- At 93%, the top reason Millennials choose to buy is to have control over their living space.
- Many Millennials who rent a home or apartment prior to buying their own homes dream of the day that they will be able to paint the walls whatever color they’d like, or renovate an outdated part of their living space.
Read More: Real Estate News with Keith Kreis
Is It Possible To Buy A Home While Carrying A Student Loan?
First time home buyers face a great challenge breaking into the housing market. Rent keeps increasing and the availability of low-priced homes remains limited. Add several thousand dollars in student loan debt to the scarcity of low-value homes and budding buyers are likely to be convinced that they are not in a position to buy. Based on recent research, those who have completed a bachelor’s degree and intend to buy homes are modestly affected by their student loan repayment in their search. In this article, we take a look at tips from financial experts regarding how to acquire a mortgage while at the same time servicing a student loan.
What repayment strategy do you have to get rid of the student loan?
The strategy you choose to pay off your student loan plays a great role in determining whether you will be able to service the mortgage and the student loan concurrently. For instance, if you decide to use the snowball method to service your loan, you have the chance to take a forbearance period that allows you to take a break. Such a break may then be used to clear off other small loans aggressively. Once the forbearance period elapses you will have cleared the small debts you have allowing you to take on a mortgage and clear off your student loan with traction.
Another strategy of paying off your student loan would be to requester your loan administrator to give you a lower interest rate. A low-interest rate on your student loan means your monthly repayments will be reduced thus making it easier for you to take a low-interest mortgage.
What financial plan do you have to pay off the student loan?
For you to pay off your student loan fast, you should come up with a financial plan to help you cut down on expenses. By cutting down most of your expenses, you will be able to have more monthly savings thus enabling you to make bulk repayments that will help you clear the loan in a short time.
To have more money left to repay your loan at the end of the month you may decide to use public transport instead of a taxi, have a roommate whom you split house bills with, and avoiding meals out.
5 Tips To Get Financially Ready To Buy A Home
The ability to pay your bills on time and still have money left over at the end of the month makes you financially solvent, important when considering the future purchase of a home. Being able to save money is vital, whether you intend on paying cash or using a mortgage when you buy. Proof that you pay your financial obligations on time and save money can lead to better loan rates and terms.
Getting back on your feet after a financial disaster takes time. It involves patience, hard work and teaching yourself new habits. The sooner you start, though, the sooner you’ll have the keys to your new house.