Quote:
Originally Posted by Shazam
My PILs bought their home in 1977 for $30K.
My parents bought their home around 1987 for $90K. Catch: 23% interest rate on mortgage.
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I'm assuming you're joking about the 23% interest rate in 1987, unless they were borrowing from a loan shark. But just to put some numbers into that to compare to today using the prevailing interest rates at the time:
$30K in 1977 = $135K today = $1,085 mortgage in 2022 dollars (w/ 10% down)
$90K in 1987 = $199K today = $1,765 mortgage in 2022 dollars (w/ 10% down)
With a 3.5% mortgage, the equivalent house prices based on those mortgage amounts would be and $240K and $390K respectively (again, assuming 10% down). So pretty affordable, assuming those houses were anywhere near an urban area.