The recession has created an opportunity for home buyers today, to own a home at less than half of what they would have paid six years ago. That’s a real estate sale of unprecedented historic proportions! A home that would have sold for $800,000 six years ago, is today selling for right around $488,000.
Six years ago, the interest rate on your 80% loan would have been approximately 6.34%, but the interest rate today, on that same home on a 30-year fixed rate mortgage is running 3.85% and even lower at times.
See the chart above. Your monthly payment on your home that you bought six years ago for $800,000 would have cost you $3,978 a month. TODAY, as a result of drastically decreased home prices and historically low mortgage rates, you would