Older generations mostly have homes already, while millennials have begun to face the challenge of housing affordability. They have had difficulty because of student debt, high entry-level home prices, and other factors.
At the same time, they also lack the savings to make mortgage down payments. You can rise above your generation, however, and afford a home sooner. You simply have to save more to qualify for a mortgage, even for mortgages without PMIs here in Salt Lake City.
Too Many Years to Save Enough
How much have you saved for a mortgage down payment? Many of your generation have underestimated the amount needed for down payments.
Additionally, at the rate most millennials are saving today, a study shows that they will have to wait around four years to save enough for a 10 percent down payment on a moderately priced home. Can you wait that long?
Another study also looked into how long millennials need to save to afford a mortgage on a condo in 31 popular cities. The study took into account total savings amount, saving habits, possible financial aid, wage increases, home price increases, and investment returns of millennials.
The study showed most have to wait around five to 23 years to afford a condo.
Save More Then
Naturally, you will want your own home sooner, and $200-savings per month will fail to get you a home. Instead, you can use an automated savings process that transfers money from your checking account to a savings account. In this way, you regularly save more than $200, while forcing you to spend wisely.
Other Saving Strategies
Other ways to save for a mortgage include working a side business. You can work freelance, sell products that you can make, and other ideas. Otherwise, you can look for first-time homebuyer programs that can help you make the down payment on a mortgage.
Millennials such as you can purchase a home sooner as long as you put in the time, effort and savings to afford a mortgage. The affordability challenge can then be overcome.