> My dad graduated in 1976 in the middle of stagflation and had a 12% apr on his first house in the mid 80s. But inflation over the next few years meant that i

> My dad graduated in 1976 in the middle of stagflation and had a 12% apr on his first house in the mid 80s. But inflation over the next few years meant that in real terms (the most important terms), that rate was between 6% and -2%(!). Inflation hit 14% in 1980. The ability to refinance also means that he wouldn't have to keep that high interest rate once inflation settled down. So he probably did quite well with that mortgage. edit: I misread the dates in that sentence, so your Dad probably didn't benefit from the inflation in the early 80s. That said, it is important to consider high mortgage rates in real terms.