Does a Mortgage Make Sense in Your 20’s?
If you’re fresh out of college and in your 20’s you’ve got some decisions to make. You may have thought your tough decisions were over once you graduated but there are even bigger ones to consider as you get older. Even if you haven’t graduated with a college degree and working full time you will also face similar hurdles in life and as anyone over 50 will tell you, “You’re just getting started…get used to it.” One question more and more young people are facing is whether or not to buy a home at a young age or whether it’s better to rent. Yet there is no universal answer to this question. Yes, it can make sense to get a mortgage and no, it doesn’t make sense. It depends upon your personal situation. However, there are some questions you can ask to get you closer to your answer.
Do you want to be a home owner? Do you? Owning a home creates more wealth than owning any other single asset over time. As property values increase over time, that value belongs to you. But owning a home is much more than just finding a roof to put over your head and keep up with the mortgage payments. It also means taking care of the property, paying for insurance and property taxes. If you think you’re ready to be a homeowner and you’re in your 20’s, then you might very well be.
Are you long term where you are? Do you plan on living where you are now for a few years or do you think it’s possible you’ll find another job, get transferred or simply move a few time zones away? For those in their 20’s they’re much more mobile than someone in their 40’s. There are fewer commitments. More people are married with they’re 35 years old and fewer when they’re 25. You’re more likely to accept a new job in another city when you’re the only one impacted by the move. When you rent, you can pack up and leave when your lease expires. If you buy and then two or three years later when you decide it’s time to live elsewhere, you’ve got a house you first have to sell. If you see yourself settling in and staying seven to 10 years then it makes sense to take out a mortgage.
These two basic questions will guide you on which way you want to go but primarily it comes down to both flexibility and personal preferences. If you’re in your 20’s you’re more likely to move compared to someone in their 50’s. However, these two questions aptly apply to anyone thinking of buying a home and financing it instead of renting, regardless of how old you are. If you’re 70 years old and you move into a property and only plan on living there a year or two it probably makes more sense to rent instead of own. But if you’re ready to own your first home and you see yourself staying put for a while, then a mortgage might one of the best decisions you’ve ever made in your young life.
For more information or questions about mortgage loans,
Please visit Majestic Home Loan
Or Call (855) 757-8748