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Ask about his mortgage rate at the time though... Interest rates are a double edged sword.
by jonknee 10y ago
Ask about his mortgage rate at the time though... Interest rates are a double edged sword.
- shostack 10y agoHonestly I'd much rather have had a high rate back then as it meant home prices were lower. Now that rates have plummeted that could be refinanced into what might be quite a decent amount of savings.
- jonknee 10y agoHindsight is always 20/20, but it wasn't an obvious slam dunk to buy a home with an 18% loan. That's like paying for your house on a credit card. It was even more unaffordable then as it is now (on average, obviously individual markets vary--SF is more $$$ and Detroit way cheaper). http://finance.yahoo.com/blogs/just-explain-it/why-mortgage-rates-matter-152241574.html http://finance.yahoo.com/blogs/just-explain-it/why-mortgage-... > Affordability dropped to an all-time low as rates climbed to record levels. Simply put, mortgage rates priced most Americans out of the market, and it took years for home sales to rebound.