Tuesday, January 6, 2015

Is Marriage Before Mortgage Still a Thing?

Marriage Before Mortgage...is it necessary?
The Claus Team has come across some very interesting statistics in 2015 that suggest things are really starting to change in Real Estate. Of course, we have noticed in our own day-to-day business that families have changed quite a bit since starting out in Real Estate in the early-nineties. And of course, the market continually changes. Society changes. Everything changes! Marriage before mortgage used to be the only option.

Life used to go like this: once upon a time, you graduated high school, you got married, you bought a house, and you immediately began to have children. At least, that’s the experience I recall with my own grandparents, who at 18 got their diplomas, got married, bought a house, and got pregnant with their first child (out of four subsequent children), all in the same year. That was in 1951, when marriage was a prerequisite of a mortgage. Nowadays, things are drastically different than they were in the “good ole days”.

An influx of young people are pursuing mortgages in 2015 despite being unmarried, according to an article in the Los Angeles Times. Roommates, same-sex partners and unmarried couples are occupying the housing market increasingly more these days, says Harvard University’s Joint Center for Hope researcher Rachel Drew. Along with this upward trend, is a downward trend of married-couple mortgages.

A 2014 study by real estate website Redfin revealed that some couples are finding it more prudent to take the money they’ve earned and put it toward a down payment on a home, foregoing a wedding or a honeymoon.

That doesn’t mean marriage isn’t still a big factor in today’s real estate market. The link is clear, as a large part of the housing market is still occupied by married couples. It just means that number is continuing to decrease as newer generations take hold of the market.

(Photo Credit: L.A. Times, 2015)

What do y’all think of the mortgage-marriage concept? Do you think it’s a good thing to be married before buying a home, do you think it’s bad, or does it matter to you either way? We’d love to start up a good conversation and hear what you think. Post away in the comments box below!

Oh, and one more thing. Married, unmarried, or between a marriage, we are always here to help you out in all things Real Estate. Just give us a call and we can discuss things like when to put your home on a market, what type of home you’re looking for, or give you a current market analysis. Can’t wait to hear from you!

Source: “Many Buyers No Longer See Marriage as Prerequisite to a Mortgage,” Los Angeles Times (Jan. 2, 2015)

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