Millennials are the fastest growing age group to transition to homeownership these days but they are also the same group that are spending more of their monthly income to achieve that goal. According to a new report from Hometap, millennial homeowners are spending the highest percentage of their monthly income on homeownership costs than other generations.
Fifty-two percent of homeowners in the U.S. spend at least 16 percent of their monthly income on their mortgage payment. One in three millennials spends more than 26 percent of income on their mortgage.
Younger homeowners are also the group least likely to have a firm understanding of their full financial picture including knowing how much equity they have in their homes.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.0 percent and 15-year rates are near 2.25 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (877) 700-0942 and your questions may be featured in an upcoming article.
