by Nicki Campbell

In case you are wondering if this is a good time to buy a home, this graph should help to put things in perspective!

To help you make a valid comparison, consider this:

Monthly payments on a $200,000 (30-yr) loan in 1981 at 16.5% would have been $2,770.  Today, at 5.09%, your monthly payment would be only $1,084.

Conversely, if you could afford a monthly payment of $2,770, you could have borrowed $200,000 in 1981;  today, you could borrow $511,000!  That translates to being able to buy a $555,000 house today with 10% down for the same monthly payment as a $220,000 home (with 10% down) in 1981!

 

This graph is courtesy of Brad Rich of Wells Fargo Mortgage.  You can reach him at 614-888-2038 or Brad.R.Rich@wellsfargo.com.