Here are some numbers that make you say “wow”.
- A $400,000 house today would have cost $642,650 in September of 2006 (1) a difference of $242,650!
- A 30 year mortgage today is 4.13% (2) and in September of 2006 it was 6.41% (2)
- The monthly payment today would be $1,939.76 and in September of 2006 it would have been $4,024.02 a difference of $2,084.26 per month.
- Over the term of the loan, the total savings for the house purchased today would be $750,333!
- If today’s buyer took out a 30 year loan at current rates but made the same payments as the buyer in 2006 ($4,024.02) the loan would be paid off in 10 years 2 months…the buyer in 2006 would still have almost 15 more years of payments.
1) Calculated using Federal Housing Finance Agency figures for the West Coast
2) From Federal Home Loan Mortgage Corporation website: freddiemac.com