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Old 05-06-2016, 09:49 AM
 
Location: Homeless
404 posts, read 527,161 times
Reputation: 392

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2010...500k price, 100k down, 5% interest....2147/mth
2016...570k price, 100k down, 3.6% interest....same payment
Isn't most of this price inflation hysteria simply interest rate driven?? Sheesh

Methinks monetary experts setting policy in this country are pretty freaking nervous about what a sudden rate adjustment back to 5% means to Joe Homeowner
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Old 05-06-2016, 10:03 AM
 
Location: RI, MA, VT, WI, IL, CA, IN (that one sucked), KY
41,936 posts, read 36,989,150 times
Reputation: 40635
Quote:
Originally Posted by traffic_lover View Post
Methinks monetary experts setting policy in this country are pretty freaking nervous about what a sudden rate adjustment back to 5% means to Joe Homeowner
They should be.

They're probably more worried about what would happen to big business.
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Old 05-06-2016, 11:09 AM
 
Location: East Coast
4,249 posts, read 3,729,725 times
Reputation: 6487
I actually would have expected a lower payment.

It is amazing what a difference interest rates make. No way we could have bought our house if interest rates were over 5%.

Back in 2001, we had an interest rate around 7%, which historically was pretty good. When we moved in 2003, we got an interest rate of 5.125%, which was also historically low, and even though our mortgage was much more, our payment was only slightly higher. Now we have 3 something% and our mortgage is more than our previous one, but not by the same magnitude.

I'm not so sure how much lower interest rates could go at this point.
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Old 05-06-2016, 12:08 PM
 
24,559 posts, read 18,281,854 times
Reputation: 40260
Quote:
Originally Posted by chicagoliz View Post
I actually would have expected a lower payment.

It is amazing what a difference interest rates make. No way we could have bought our house if interest rates were over 5%.

Back in 2001, we had an interest rate around 7%, which historically was pretty good. When we moved in 2003, we got an interest rate of 5.125%, which was also historically low, and even though our mortgage was much more, our payment was only slightly higher. Now we have 3 something% and our mortgage is more than our previous one, but not by the same magnitude.

I'm not so sure how much lower interest rates could go at this point.
Property tax rates don't usually go down as homes appreciate in a town. The town happily spends the money.
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