Is everybody tired of hearing about the  real estate market doom and gloom reports?.  I feel it is necessary to inform the public and consumers of the realties we face in the market. However, I also feel that all this bad news can "grind" our spirit down.

I was pondering this blog today, that I'm not seeing too many good news real estate and economic reports, but "good news" is indeed available to us daily.

At the risk of sounding cliche, real estate is one of the best long term investments available, especially now.

A home can give you tax breaks, a place to live, something you can call your own and over time increase in value

Today I want to speak about interest rates:

In 1981,  home loan interest rates averaged 16%!  On a $50,000 mortgage the payment was $800.00 (not including taxes and insurance. ) This was 27 years ago.  Inflation was at an all time high. minimum wage was $3.15 per hour,  most entry level employees in the working class didn't start higher than this...and jobs were scarce.

In Taunton, today you can buy a house for an average price of about $250,000, with a 6% interest rate, about $1500 a month.  Yes of course the cost  of living is up, but look at this:

If interest rates were 17% today, the mortgage payment on a 200,000 dollar loan would be $3200 a month!  OUCH! Oh.. and in 1981, a 30 year mortgage was not available. Most people took out 15 year notes.

So yes, home prices have gone up, but interest rates are sooooo low! This offsets the higher home prices.

Check out various  programs at http://metrocitiesmortgage.com

Thank you for viewing my blog

Lori Lincoln is a Realtor for Keller Williams Realty who sells homes in Taunton Ma, Rehoboth, Swansea, Somerset, Fall River, Raynham Massachusetts and surrounding cities and towns.

Free Foreclosure listings available for the asking send an email to lorilincoln@kw.com

or call 508-878-0917