Comparing Mortgage Credit Variables by Applicant Age

29 Jun

Reblogged from CoreLogic – @Archana Pradhan

Millennials have the lowest credit scores, and highest LTV and DTI Ratios

Often, young households have less credit history (and sometimes no credit history), limited savings, and lower levels of income because they are just beginning their working careers. In contrast, households near or in retirement generally have an extensive credit history, more savings, but may have a limited fixed income if already in retirement.

These trends are borne out when comparing the credit risk attributes of new mortgage loan applicants by age. Millennial applicants have the lowest credit scores when compared with older cohorts. The average credit score for Millennials applying for a mortgage loan in the last three months (March, April, and May) was 730 compared to 738 for Generation Xers, 753 for Baby Boomers, and 770 for the Silent Generation (Figure 1)[1]. Compared to other cohorts, Millennials have had less time to build their credit history.

>> Read the full story here: http://www.corelogic.com/blog/authors/archana-pradhan/2016/06/comparing-mortgage-credit-variables-by-applicant-age.aspx?WT.mc_id=crlg_131016_0OGMz#.V3QdwE36vZ5

The views expressed are my own and do not necessarily reflect the views of my employer.

Visit my website at: www.juliecnichols.com or contact me with any of your home loan questions.

#MortgageBlog

#BestMortgageLender

Advertisements

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: