How Things Have Changed in the Past 3 and a Half Years
By Bob Willis, Orange County & L.A. County Real Estate Agent
(Berkshire Hathaway HomeServices California Properties)
I just came across an old spreadsheet that I had created on October 7, 2008 that compared interest rates and payments for a typical home in Whittier.The average interest rate at the time was 6.5%.The average Whittier home price was $470,000.FHA loans allowed borrowers to have a down payment of only 3% of the purchase price.Today, the nationwide interest rate for a home loan is 3.88%, according to bankrate.com.Today, the average Whittier home price is $295,000 (based upon last 3 months of sales).Today, FHA loans allow borrowers to have a down payment as low as 3.5% of the purchase price.Using bankrate.com's mortgage calculator, the monthly payment on a $470,000 home loan at 6.5% is $2,970.72.Using the same bankrate.com calculator, a comparable home loan today of $295,000 at 3.88% interes...
Comments
5