What's happening in Real Estate right now?
- Mortgage rates are at an all time low
- Home prices are a steal
- $8,000.00 First time homebuyer credit - Who wouldn't want that?
Speaking of Mortgage Rates, take a look at this:
| Current Rate | Loan Amount | 30 Yr. Fixed | P&I | Income to Qualify | |
| 2009 | 5.25% | $150,000 | Yes | $828/mo | $35,000/yr |
| 1981 | 16.63% | $150,000 | Yes | $2,093/mo | $86,700/yr |
How were people buying homes back in 80's? Look at the difference! WOW!
I remember buying my first home in 1981..oops, this might be aging me, oh well. For some reason I don't remember stressing out back then about the mortgage rates, they were what they were. But, now that I have children who are first time home buyers and who can take advantage of all the options right now I can certainly see how they are going to start out a whole lot better off than I did.
I remember my first home in 1981 was $20,000. That doesn't sound like much, but for a first time home buyer, not needing much room, and a very handy husband, it was perfect back then. (I know, it wouldn't buy you much today, add about 95-100% inflation, and you're still looking at a good fixer upper. Thank God for Handy Men!)
Here's how I see this...back in the "olden days" if my first house then was 20k. @ 16.63% interest, we would have been paying about $279 a month. Today, if I were to buy a $20,000 home (it would probably be a yucky mess and we'd want the land only) 20k @ 5.25% interest, that home would cost me about $110 bucks a month. You don't know how much we needed that extra money back then!
WOW! Indiana houses for sale are CHEAP right now!
Want more info on how to get the best loan - contact Scheetz Mortgage. The Loan Officers at Scheetz Mortgage shop around for the best rates. They aren't satisfied until you're satisfied!
Contributed by Patty Bender
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