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Housing is just downright scary. I feel like there was more freedom to live where you wished to in the past. Not just exclusive enclaves and neighborhoods which have existed throughout time, but huge swaths of regions, cities, suburbs, etc.
In aggregate, Millennials aren't too different from other generations. But when you get into details, I think they tend to be more extreme. Either they really have their act together--or they really don't. And there's not much in between.
In aggregate, Millennials aren't too different from other generations. But when you get into details, I think they tend to be more extreme. Either they really have their act together--or they really don't. And there's not much in between.
But is that any different from prior 20-30 somethings? Isn't that pretty much the age, generation after generation, when people either really grow up, or become children with credit cards and "huge" paychecks?
Housing is just downright scary. I feel like there was more freedom to live where you wished to in the past. Not just exclusive enclaves and neighborhoods which have existed throughout time, but huge swaths of regions, cities, suburbs, etc.
If you think housing today is scary, try going back to 1981 and buying a home. The interest rates for mortgages got as high as 18%! I bought my first home in the mid 1980's and did something drastic -- I took on an ARM rather than a fixed rate mortgage. This was scary for someone conservative with money, but it worked out well with rates actually decreasing. Now fixed rate mortgages are so low one would never consider an ARM. Of course, I'm assuming they still offer ARMs.
Location: Formerly Pleasanton Ca, now in Marietta Ga
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Originally Posted by StillRoaming
If you think housing today is scary, try going back to 1981 and buying a home. The interest rates for mortgages got as high as 18%! I bought my first home in the mid 1980's and did something drastic -- I took on an ARM rather than a fixed rate mortgage. This was scary for someone conservative with money, but it worked out well with rates actually decreasing. Now fixed rate mortgages are so low one would never consider an ARM. Of course, I'm assuming they still offer ARMs.
yes. lot of people freak out if interest rates rise a little. OMG it's 4.5%, I will never pay that much-forget the house. Those of us that had those 18% loans ( I had 3 of them with rentals) look at rates today and think how wonderful it is.
Now fixed rate mortgages are so low one would never consider an ARM. Of course, I'm assuming they still offer ARMs.
They do, and they can still make sense. I got into a 10/1 ARM 4 years ago. The monthly cost was within a few dollars of a 30yr fixed... Even if I had made just the normal payment, the loan would be paid off in 15 years, with many tens of thousands less in interest.
It was a no-brainier for us and I'm frustrated/angry that the 3 Prior home loans we've had, the loan officer didn't bother mentioning it.
As for housing, I'm wondering if as time moves on those who want affordable housing will migrate rural where you can buy beautiful old homes for $60k. Vast swaths of the country with dirt cheap property, clearly with Other issues/complications, but for those who want to be home owners, it's very possible.
They do, and they can still make sense. I got into a 10/1 ARM 4 years ago. The monthly cost was within a few dollars of a 30yr fixed... Even if I had made just the normal payment, the loan would be paid off in 15 years, with many tens of thousands less in interest.
It was a no-brainier for us and I'm frustrated/angry that the 3 Prior home loans we've had, the loan officer didn't bother mentioning it.
As for housing, I'm wondering if as time moves on those who want affordable housing will migrate rural where you can buy beautiful old homes for $60k. Vast swaths of the country with dirt cheap property, clearly with Other issues/complications, but for those who want to be home owners, it's very possible.
I don't think people even have to go rural. There a lot of places in the rust belt with semi-decent homes going for <$60k even.
If you think housing today is scary, try going back to 1981 and buying a home. The interest rates for mortgages got as high as 18%! I bought my first home in the mid 1980's and did something drastic -- I took on an ARM rather than a fixed rate mortgage. This was scary for someone conservative with money, but it worked out well with rates actually decreasing. Now fixed rate mortgages are so low one would never consider an ARM. Of course, I'm assuming they still offer ARMs.
Interest rates can be renegotiated. You can’t renegotiate what is owed on the mortgage
From an economic standpoint, the argument can certainly be made that millennials are different than other generations before them. They are much worse off when you consider real estate prices, student loan debt, and the ever increasing income inequality.
But whatever generation is after millennials will have it much worse.
from a quality of life standpoint millennials have it best...
no Great Depression, no World War One, no wwii, no Cold War, no polio
they get "yolo" for cheap, cheap travel, cheap vacations, cheap goods
they didn't even get hit by the recession in 08-09 because most of them were in school and not working/had financial obligations
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