$85k Home in the 1980s or a $200k in 2012 - You Pay the Same in the Long Run Either Way
Posted by Patrick Hake onThe California Associtaion of Realtors recently released the following infographic to help put into perspective how great the interest rates are right now.
If you bought an $85,000 home in 1980 with 20% down payment and an average interest rate for that decade of 12.7%, your payment would be the approximately the same as it would be for a $200,000 home at today's rates hovering around 3.5%.
Your principal and interest payment for the $85,000 home at 12.5% in the 1980s would be $900. The total cost over 30 years would be $326,000 with $241,000 in total interest paid.
Your principal and interest payment for a $200,000 home at 3.5% today would also be $900. The total cost over 30 years would be $323,000 with $123,000 in total interest paid.
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