You've probably heard that interest rates are pretty good now... around 5% for a "30 year fixed". But check out what that means to you as a buyer. It's pretty shocking!
A $200K loan at 5% costs you $1,073 per month P&I (principle and interest)
If you want to keep that payment, here's the price loan you can afford if interest were higher.
6.25% = $174,000 - (the interest rate in 2002 for a $1073 payment)
8.5% - $139,000 - (2000 interest rate for a $1073 payment)
9.25% - $130,000 - (1994 interest rate for a $1073 payment)
15% - $84,000 - (1984 interest rate fora $1073 payment)
Still wishing for the good old days? As a buyer, it's better today than it's ever been. You get WAY more for your money than ever. We will look back on these times as the best home buying days in our lives!
Flickr photo by Steve Wampler
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Check out my other posts that might be of interest.....
HOME BUYERS AND SELLERS..........Buying a Home, Selling a Home, Loans, What Happens if....
LOCAL INFO................................. Fair Oaks, Carmichael, Sacramento, Folsom, Citrus Heights
ABOUT SALLY DUNBAR.................. How I learned to...., Personal stuff, My Wordless Photos
OTHER STUFF............................... Inspiration, Attitude, Humorous Stuff, Charity, the Economy
TECHNOLOGY, BLOGGING ............. Active Rain, Technology
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Your Fair Oaks Realtor for homes for sale in Fair Oaks and the Sacramento Area of California.... I'm your gal (Sally Dunbar). I'm occasionally knowledgable, periodically humorous, and always willing to tell you everything I know. What more could you ask for?
Sally Dunbar, 30 year Broker Associate, Lyon Real Estate, Fair Oaks, CA (916) 535-0356, SDunbar@GoLyon.com "Your Fair Oaks Realtor"
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Yes, these are the good old days...and I believe we may see interest rates back until 5% soon.