Generational Home Buying


Buyers in their 20’s often get ARM’s, which are Adjustable Rate Mortgages. These mortgages have low introductory interest rates, keeping the payment low and affordable in the beginning. The rate on these mortgages will adjust and/or increase the payment at some point in the future. Young buyers don’t see an issue with this because they assume they will be earning more money in the future and will be able to afford the new payment(s). The problem with this is, interest rates are continuing to rise and if the home value falls then these buyers are not in a good position. Younger buyers should opt for down payment assistance programs - like FHA loan or down payment assistance conventional loans. These loans are designed to reduce the amount of out of pocket cost needed and lock in an interest rate.


Buyers in their 30’s need to think about their future and the goals associated with that. Nowadays there are more single people buying homes and its important to not only consider your current situation but also your future plans. A buyer may be single now but have future plans for a family, buying a small one bedroom condo may be ideal at the moment but may not support the future goal of a family. The goal is always to think long term. 


Buyers in their 40’s and 50’s are usually more financially stable and have more money saved. Which can lead to purchasing a home they really can’t afford at the end of the day. Having enough money saved for a down payment on a large home is great, but if you can’t afford the monthly mortgage payments then you're setting yourself up for failure. It is extremely important to know and understand your budget BEFORE purchasing a home. This is extremely important for all age groups but especially for 40’s and 50’s. 


Buyers in their 60’s and up tend to be retirees and take vacations. While vacationing some people end up falling in love with the place and decide to move. There is nothing wrong with finding that place you love and deciding it is where you want to retire. The most important thing in this situation is to be sure you educate and familiarize yourself with an area. Buying and relocating is an expensive and tedious process, so be sure you have done lots of research before deciding to pick up and move.