Monday, June 2, 2014

Interest Rates are still at an all time low

My first home was financed at 13% plus.  It was a small, two level townhome in Prince William County.  Eventually, it increased in value and we were able to afford a small, two level rambler with a yard for our kids to play in.  The rambler mortgage was financed by the seller along with a down payment from our townhome sale proceeds.  We saved alot of money by securing the seller financed loan since interest rates were 12% plus at the time we moved.

We made our mortgage payment directly to the seller each month.  This mortgage payment plus social security income was the sellers retirement income.  Today, seniors on fixed income are struggling to make ends meet.  A 10% rate of return in unheard of!

Interest rates on residential mortgages are incredibly low today.  Home prices, on the other hand, have steadily increased over time, despite the financial downturn in 2008.

The KCM blog has a graph of the cost of money over time.  It can be viewed here

It is always interesting to look back on the past and use that information to make sense of the present.

If you are interested in qualifying for a loan call me today.  I can refer you to an experienced lender.

                                                                 Thank you

                                                                Carla Brooks

PS the picture is a courtesy of Free digital photos

No comments:

Post a Comment