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How Things Have Changed in the Past 3 and a Half Years

By
Real Estate Agent with Berkshire Hathaway HomeServices California Properties DRE# 01788371

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%.Affordable Whittier Homes

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?

-- Blog End --

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About the author: The above article was provided by Bob Willis, a locally recognized Realtor®.

Thinking about selling your home? Go to

http://yesiwanttosell.com 

 

Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Bob - That is a huge difference.  It's too bad that more people don't look at it that way.

Feb 07, 2012 01:12 PM
Patrick White
Home Driven Realty, Inc - Baldwin, NY
Driven to bring New Yorkers home

Good Evening Bob

Thanks for the post and retrospective. Have a great day

Feb 07, 2012 01:42 PM
Bob Willis
Berkshire Hathaway HomeServices California Properties - Orange, CA
Orange County & L.A. County Real Estate Agent

Christine, the difference could be life-changing for someone who can now afford a home who would have found it impossible 3 years ago.

Good Evening Patrick.  Thanks for stopping by.

Feb 07, 2012 04:49 PM
Stella Barbour
NoVa Brokers LLC - Vienna, VA
Principal Broker, Serving Virginia and Maryland

I wish everyone could see the difference.  I still have a few potential buyers on the fence.  I keep telling them to jump off.

 

Feb 08, 2012 12:53 AM
Bob Willis
Berkshire Hathaway HomeServices California Properties - Orange, CA
Orange County & L.A. County Real Estate Agent

Stella, feel free to re-blog, or perhaps you could write a similar blog on your area. 

Feb 08, 2012 01:33 AM