Buyer’s remorse: what millennials regret about their mortgage

Mortgage

With the starter home inventory shortage pressuring first-time homebuyers to act, four out of five millennial purchasers lament at least one aspect of their mortgage, according to Zillow.

Homeowners between 18 and 34 years old resented high mortgage payments most of all. About 30% expressed dissatisfaction with their payments versus 12% of buyers aged 55 years and up, the Zillow Housing Aspirations Report found.

Zillow

Haste makes waste and the regrets could stem from the amount of time taken when getting a mortgage. Approximately 29% of the younger buyers said they rushed through the process without weighing all the options compared to 12% of the older buyers.

Affordability clearly affects the younger demographic more, as over double the amount think their interest rate is too high in contrast to the 55-and-older crowd, 27% to 12%.

“The American dream of homeownership is still alive and well, and younger buyers who are building families and forging their careers must stretch their budgets to achieve it,” Skylar Olsen, Zillow’s director of economic research, said in a press release.

“They have long wish lists to fit their needs, and are often navigating the process of buying for the first time. While their inexperience may lead to wishing they’d done some things differently, few homeowners regret making the decision to buy instead of rent.”

Despite the reservations, only 8% of Americans across all age groups regretted purchasing a home instead of renting. However, there was a stark difference between the age groups. Nearly 17% of young owners bemoaned not renting anymore versus 4% of their elders.

The report surveyed 10,000 U.S. homeowners and renters across 20 large metro areas.

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