The AARP tells us Baby Boomers are turning 60 at a rate of 10,000 a day. According to the Harvard University State of Housing, over the next two decades, the number of people in the United States over age 70 will increase by 90%.
However, while perhaps we are no longer the “long-haired idealists” that worried our parents in the 60s and early 70s, we are still a driving force in the nation’s economy and most certainly of the mortgage industry. Loan officers who forget about us in their pursuit of our Millennial children are missing an enormous opportunity.
Here are 3 things you need to know about the Baby Boomer generation and one giant thing we should know but don’t!
1. We still use mortgages!
We are not the mortgage-burning generation like the ones before us. The percent of Baby Boomers whose homes are secured by debt has steadily increased from 18.5% in 1992 to 30% in 2002 to 42% in 2013.
Baby Boomers split on whether to move to a new place or remain in their current home.
2. Should I stay or should I go?
This generation seems split on whether to move to a new place or remain in their current home.
One report shows that 61% of us would like to age in place. However, 65% would need to make renovations to achieve that goal. Thankfully, we have the resources to do just that. Baby Boomers own 66% of the nation’s equity or nearly $8 trillion.
On the other hand, according to Freddie Mac’s June survey, nearly 40% admit they would like to move at least one more time. The National Association of Realtors 2017 Generational Report demonstrates once again the Baby Boomers accounted for 30% of originations last year.
3. Helping hand
Nearly a quarter of Baby Boomers claim they have helped someone financially purchase their home. Of course, that begs the question: How many more would have been willing to do that had they known it was an option?
What we need to know from you
Millennials aren’t the only ones who lack knowledge regarding down payments. It seems the apple hasn’t fallen far from the tree. According to NAR’s HOME Survey from September 2016, more than a quarter (27%) of baby boomers believe lenders require more than 20% for a down payment. Another 35% believe you need 15-20% and all total 87% of Baby Boomers think you need 10% or more down when buying a home.
Even though we are the older generation, there are some things we could learn! And you could show us the way: how to refinance or purchase new, how to tap into equity for home improvements or explain how a gift could be used as a down payment for an adult child. Clearly, there are opportunities here in the Baby Boomer market for loan officers and lenders – you just have to look!