I just came across an old spreadsheet that I had created on October 7, 2008 that compared interest rates and payments for a typical home in Whittier.
The average interest rate at the time was 6.5%.
The average Whittier home price was $470,000.
FHA loans allowed borrowers to have a down payment of only 3% of the purchase price.
Today, the nationwide interest rate for a home loan is 3.88%, according to bankrate.com.
Today, the average Whittier home price is $295,000 (based upon last 3 months of sales).
Today, FHA loans allow borrowers to have a down payment as low as 3.5% of the purchase price.
Using bankrate.com's mortgage calculator, the monthly payment on a $470,000 home loan at 6.5% is $2,970.72.
Using the same bankrate.com calculator, a comparable home loan today of $295,000 at 3.88% interest has a monthly payment of $1,388.04.
Do you think homes are much more affordable today than they were only 3 years ago?
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About the author: The above article was provided by Bob Willis, a locally recognized Realtor®.
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