July 24th, 2019
The determination to be financially independent seems to be growing among homeowners, especially of the millennial generation. Redfin recently conducted a survey asking respondents whether they would be willing to work a second job in order to pay for their mortgages. Of the respondents, 31% of millennials answered that they would be willing to work another job, which is a 2% increase from 2018. On the flip side of this, only 7% of millennials said they plan to ask for financial assistance from family members, which is a cut in half from 2018. Another decrease from 2018 was the number of millennials (11%) willing to get a roommate in order to offset their mortgage expenses, compared to last year’s 14%. Some of the main reasons for financial independency in the millennial generation are higher household earnings compared to previous generations, along with millennial women who are working more and earning more. They are also waiting longer to get married and have kids, aiding their financial situations.
Here’s the catch: although it’s a positive sign that millennials are willing to work second jobs in order to pay their mortgages, it should be obvious that it’s not an ideal scenario. Our job as loan officers is to make sure we are setting up our millennial customers for success, getting them into houses and mortgages that they can afford without sacrificing their time and livelihood. Be sure you are giving the best advice possible and helping your borrowers get into homes they can afford with an ideal payment and term.