The Good Ole Days...

By
Real Estate Agent with Keller Williams Realty - Topsfield, MA 92593-B

OR...were they. Here's a fun infographic by the folks at KCM. When Pam & I bought our home in 1985 we paid 13% and that wasn't even at the height of interest rates. We have friends that paid up to 16%+ 

We knew rates couldn't stay that high and we were prepared to refinance when rates came down. We actually refinanced 3 different times & made additional principal payments. We paid off the mortgage in 23 years.

Today the interest rates are still low, low, low. Owning Real Estate is still the best way to accumulate wealth. The longer you wait, the more it will cost you to own

 

Cost Across Time [INFOGRAPHIC]

Cost Across Time [INFOGRAPHIC] | Keeping Current Matters

Some Highlights:

  • With interest rates still around 4.5%, now is a great time to look back at where rates have been over the last 40 years.
  • Rates are projected to climb to 5.1% by this time next year according to Freddie Mac.
  • The impact your interest rate makes on your monthly mortgage cost is significant!
  • Lock in a low rate now while you can!

 

 

Posted by

I pray that God our Father and the Lord Jesus Christ will be kind to you and bless you with peace

2 Thessalonians 1:2

 

Doug Dawes REALTOR®, AWREP, LMC

Broker Sales Associate

KELLER WILLIAMS REALTY - Topsfield/Newburyport

49 Main Street
Topsfield, MA 01983
 978-887-3995  ~ Office
 978-270-3037  ~ Cell
 DougDawes@KW.com

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Rainmaker
1,076,162
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

Good morning 

Thank you for sharing your great information with us 

Have a great day.

07/07/2108 

Jul 07, 2018 07:29 AM #1
Rainmaker
775,355
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Good Morning Anthony Acosta - ALLATLANTACONDOS.COM 

How are things in Atlanta? Thank you for stopping by and you have a great day too.

Jul 07, 2018 07:58 AM #2
Ambassador
3,338,073
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Love that KCM does the research for us too, Doug! It's really difficult to imagine that we ever paid interest rates that high - I mean nearly 4 times what we are paying now is just hard to comprehend, isn't it?!

Hope you have a wonderful weekend, Doug!

Jul 07, 2018 08:09 AM #3
Rainmaker
3,199,289
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

I was one of those people that paid 16% back in the day.  lucky I have a 4.25% now.

 

Jul 07, 2018 08:56 AM #4
Rainmaker
3,983,267
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I had a business plan t 25%.  People who complain about a small increase today have no idea

Jul 07, 2018 08:59 AM #5
Rainmaker
3,630,219
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning again Doug. This is an important post and your point is well made.

Jul 07, 2018 09:34 AM #6
Rainmaker
1,008,951
Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

I don't even break a sweat when I think of 5 and 6% interest rates. You have to have been there Doug, you get it.

Jul 07, 2018 10:51 AM #7
Ambassador
3,983,129
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

We paid 13.5% in 1981. Some of my buyers back then paid 17-18%. Incredible when looking back.

Jul 07, 2018 06:10 PM #8
Rainmaker
775,355
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Hi Debe Maxwell, CRS 

Yes, it is hard to imagine those rates BUT Real Estate was still bought and sold. I can't imagine the wailing when rates move above 5%.

Jul 08, 2018 11:47 AM #9
Rainmaker
775,355
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Will Hamm that's a rate that will never be forgotten. We were fortunate that we were able to pay our mortgage off. It was was of our goals before retirement

Jul 08, 2018 11:49 AM #10
Rainmaker
775,355
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

You are right on that William Feela 

I do suspect a pullback in prices at some point, though

Jul 08, 2018 11:50 AM #11
Rainmaker
775,355
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Thank you Sheila Anderson 

You know the old saying "He who hesitates is lost". The longer people try to time the market the more it will cost them to buy

Jul 08, 2018 11:52 AM #12
Rainmaker
775,355
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Good Afternoon Kevin J. May 

6%-7% is fairly normal. You are right, though, you had to be there

Jul 08, 2018 11:54 AM #13
Rainmaker
775,355
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Hi Debbie Reynolds 

It's amazing, we have experienced record high mortgage rates and record low mortgage rates over our working years. I have a friend that paid 21% when they lived in San Diego, CA. That's the most I've ever heard

Jul 08, 2018 11:56 AM #14
Rainmaker
4,101,315
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Doug, I think my interest rate was around 17%, it was SO high, so funny to hear young buyrs today saying the rates are increasing to high....

Jul 15, 2018 06:16 AM #15
Rainmaker
775,355
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Hi Joan Cox 

It's all relative, isn't it? That and most people do not understand business cycles

Jul 16, 2018 01:55 PM #16
Ambassador
941,738
Mike Frazier
Carousel Realty of Dyer County - Dyersburg, TN
Northwest Tennessee Realtor

Doug, although we are off historic low rates on mortgages, the rates are still really low and there is no reason to wait to buy.

Aug 20, 2018 02:39 PM #17
Rainmaker
775,355
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Hi Mike Frazier 

I am with you on this. Of course, I think it's always a good time to buy.

Aug 20, 2018 08:38 PM #18
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