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According to a new report by home equity investment provider Hometap compared to other generations, the millennials are spending the highest percentage of their monthly income on homeownership costs.
It has been reported that more than half of millennial homeowners do not know how much equity they have in their homes and larger numbers do not know how to calculate the equity!
Homeowners’ finances have been badly impacted due to pandemic, 77% owe some form of debt or financial liability. Out of those 83% are millennials who carry debt and 72% are baby boomers.
The silver lining is, the millennials have a good amount of equity in their properties because of the rising home price. said the VP of Product Strategy & Business Development at Hometap, Jonathan MacKinnon.
Covid has impacted the finances of 47% of homeowners and out of those, 60% plan to lower their other expenses until the entire debt is paid off.
52% of U.S. homeowners spend more than 26% of their monthly income goes in paying mortgage loans There is a huge level of misconceptions & lack of understanding in regards to home equity options.
Only 38% of homeowners were prepared for the costs going into homeownership. Many homeowners did not even know that their home could provide them with tappable home equity and lost the opportunities to capitalize on their assets when they were in dire need.
MacKinnon said that though Americans are now more invested in their homes, they only view homeownership as a source of debt instead of equity, This is because of a lack of awareness on how to use home equity and take advantage of new opportunities without the burden of debt.
Reference Source: PR Newswire
