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Still think it isn't a good time to buy a home?

By
Real Estate Broker/Owner with NP Dodge Real Estate

Here is a thought that may blow your mind: You borrow $200,000 to buy a home today with a 5% rate on a 30 year fixed loan and the principle and interest payment would be $1,074. Take a look at the picture below and let's say you borrowed $200,000 in 1981 with the rate at that time of 16.63%, 30 year term and your principle and interest payment would be $2,791!! Still think it isn't a great time to buy a home?

If you wanted a principle and interest payment of $1,074 in 1981 with an interest rate of 16.63%, 30 year term; you could borrow only $76,952!

Trend over time of mortgage rates

View all area homes for sale at: http://www.npdodge.com

Cynthia White
RE/MAX Solutions ( Brevard County) - Palm Bay, FL

Great graph! What an eye opener.

Feb 24, 2010 01:10 AM