Quote:
Originally Posted by opendoor
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.
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Maybe 18.5%? It was really high. They didn't qualify for the gov't interest relief program.
I don't even know what your numbers are supposed to represent, they're totally irrelevant.