To most people, buying a house is a huge milestone. It usually means permanence: you and your family can settle down into a house and a neighborhood for several years to come, without fear that a landlord will kick you out for no reason or jack up the rent to a point where you cannot afford it. It is freedom from the sometimes tyrannical rules that landlords impose on tenants.
With your name on the title, you can be assured that you and your family will have a roof over your heads for the foreseeable future.
Young Homeowners Regret Buying a Home
The process of taking out a mortgage and looking for a house to buy takes several weeks to months. First, an aspiring homeowner has to submit all the requirements needed by a mortgage loan officer who gets to decide whether to greenlight or reject an application. The lender would need, on average, 30 days to get the actual loan, longer during high-volume periods.
It is a long and arduous process. That is why, before jumping into it, aspiring homeowners should not push through with it unless they know they are ready for the commitment.
Yet, not everyone takes the time to assess their own financial health and think about what they are about to enter.
One survey conducted in 2019 found that 51% of Millennial homeowners, or more than twice as much as Baby Boomers, experience buyer’s remorse. The majority of respondents said that their primary regret is the expensive mortgage dues they have to pay every month.
Millennials are a generation burdened by student loans. They also face rising costs of real estate properties across the nation.
As a result, they often cannot come up with the 20% down payment for their homes which leads to higher monthly dues.
Experts agree that your total debt payment, including mortgage, should not exceed 40% of your monthly income. Otherwise, it can become very difficult to budget for debt payment and daily necessities.
Everyone will experience buyer’s remorse at some point in their lives. However, when it involves a very expensive purchase, one that you go into debt for, it can be difficult to just accept the fact that you have to live with — or, in case of a house, in — it for years to come.
Dealing with Your Mortgage
Many Millennial homeowners were not prepared for the commitment that comes from borrowing a home loan. However, they do not have to live with it forever. If your regret comes from the fact that you signed up for a mortgage that you are finding difficult to pay off, there is a solution: refinance. Now is the perfect time to do so.
In 2020, mortgage rates went down to their lowest levels in decades. Analysts predict that mortgage rates that will benefit consumers will continue up to 2021. If you refinance your mortgage now, you may save hundreds of dollars per month and thousands of dollars annually. It may make paying off your debt and budgeting for your daily needs so much easier.
When You are Not Happy with Your Purchase
Every advice column warned you that you may not find a house as perfect as you imagined. Be prepared to make compromises, they said, especially if you have a tight budget. Although it is not a bad tip, you might have found yourself agreeing to acquire a house that does not make you happy.
It is natural for the excitement of becoming a homeowner to fade over time. You will encounter problems that you may have not noticed before or you thought would not be a big issue. What you need to do in these instances is to remind yourself why you chose the house instead of all the other options out there. Appreciate all the features that you enjoy and, once you have the budget, start fixing everything that you do not like.
You own the house now and you have the freedom to turn it into your dream home.
Buying a home is a decision that should be made after thinking about it over and over again. You should not buy a home because of low mortgage rates. You should not buy a house unless you are financially and emotionally ready, either.
However, experiencing buyer’s remorse does not mean you made a mistake. Most people go through with it, especially with expensive purchases. The best way to overcome it is to find joy in what you have.