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.
PS the picture is a courtesy of Free digital photos