Last week, Trulia posted a blog that questioned whether a college education was an impediment to purchasing a home for Millennials. They explained that the cost of student debt could get in the way of someone saving for the down payment on their first home.
“…a 20% down payment (the ideal amount home buyers should put down)”
Later, they claim that the 20% down payment is “traditional” and that it:
“…allows borrowers to avoid costly mortgage insurance, it is not uncommon for homebuyers to put 10% down (however, we recommend putting down as large of a down payment as you can afford). In the long run, putting 20% down will save you money…”
Let’s look at what is actually happening…
Let’s also look at Trulia’s statement that “In the long run, putting 20% down will save you money…”
In a market where CoreLogic is projecting home prices to increase by over 5% in the next twelve months and Freddie Mac is predicting that mortgage interest rates will increase by almost a full percentage point by this time next year, will your buyers actually be saving money by waiting to save up that 20% down payment?
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