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Strategy 2026 · 6 min read

81% of young homeowners have a mortgage regret. Here is the pattern I keep seeing.

The Zillow number is real. The regrets almost never involve the house. After working through hundreds of files in LA, here are the five patterns that keep showing up and what to do about them.

Couple reviewing mortgage documents at home

Zillow published a survey finding that 81% of millennial homeowners had at least one regret about their home purchase. That number gets cited a lot. What gets discussed less is what those regrets actually are.

They are almost never about the house. They are about the financing.

After working through hundreds of files in LA, I have seen a clear pattern in where the regrets come from. Most of them were preventable. Most of them trace back to decisions made in the first 90 days of the process, before the client had the context to know what they were deciding.

The five patterns I keep seeing.

1. They optimized for rate instead of total cost.

They shopped for the lowest rate and chose based on that number. Two loans at the same rate can produce dramatically different financial outcomes over 7 years depending on the term, the down payment, PMI trajectory, and closing costs. Nobody showed them the full picture. They are now in a loan that technically has a good rate but was not the best structure for their situation.

2. They waited to save 20% down and the market moved.

They were told to avoid PMI at all costs, so they waited. While they saved, the market moved. The home they could have bought for $850,000 three years earlier is now $1,050,000. The PMI they avoided cost them $200,000 in appreciation. The math was never run for them. They followed a rule of thumb that cost them more than the thing it was protecting them from.

3. Nobody called them when rates dropped.

They closed, the lender disappeared, and rates moved. Nobody reached out with a specific analysis for their loan. They kept paying the old rate because nobody told them it was worth addressing. By the time they got around to it, the window had closed.

4. They kept paying PMI long after they were eligible to remove it.

Once a loan balance reaches 80% of the original purchase price, you can request PMI removal. Most homeowners have no idea where they stand. I regularly talk to people who have been paying PMI for 12 to 18 months past the point they were eligible to remove it.

5. They chose the wrong loan term for their actual timeline.

Most people default to a 30-year fixed without seriously considering what their 7-year or 10-year picture looks like. For buyers who know they will move or refinance within a decade, the 30-year is often not the optimal structure. Understanding this changes how the decision looks.

What changes when you know these things going in.

Every one of these regret patterns is addressable at the front of the process. Running a Total Cost Analysis before the loan is signed eliminates pattern one. Running the PMI vs. waiting math addresses pattern two. Setting up active post-close monitoring prevents patterns three and four. Having a real conversation about timeline and structure prevents pattern five.

The 81% figure is not a reflection of unavoidable complexity. It is a reflection of an industry that moves people through a transaction as efficiently as possible and then disappears. The regrets are predictable. They are also largely preventable.

The clients I work with don't become statistics. Not because they were luckier, but because the questions that generate regrets were asked and answered before the loan closed.

Start with the questions most advisors skip.

One free conversation covers all five patterns, runs the Total Cost Analysis for your situation, and gives you a clear picture of your options. 15 minutes.

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Daryn Fillis
Certified Mortgage Advisor · NEO Home Loans · NMLS #1988371

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