The Great Recession is still hurting Gen X

Source: Market Watch

The recession is continuing affect one aspect of Generation X’s financial health — and it could be putting their retirements at risk. Generation X home owners with mortgage between the ages of 35 and 50 on average have a loan-to-value ratio (LTV) of 70 percent, according to a report released this week by real-estate website Zillow. Comparatively, the average LTV among all home owners is 62 percent. The loan-to-value ratio measures how much a borrower still owes relative to the value of the property. Having a lower LTV means that a home owner has a lower amount left to pay on the mortgage — comparatively, home owners with high LTVs are at a greater risk defaulting on their loans. Making mortgage payments or providing a larger down payment will lower the LTV for a homeowner, and home owners with lower LTVs can qualify for a lower mortgage rate.

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