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30 years of mortgage and income changes

I often find myself straddling political definitions, never really fitting into a box or another. Fiscally conservative, but socially liberal; Distrusting of my government, but opposed to Ayn Rand’s principles. What’s a girl to do?

My family of origin, however, leans securely to the right, and the age difference between my siblings and myself give me a rather interesting insight into the contemporary neocon perspective.

My brother-in-law recently made the declaration that since his mortgage interest rate was 10+ percent when he bought his house and he managed to pay it off, why can’t everyone else?

My brother-in-law’s biggest flaw, as much as I love him, is that he compares everyone’s experience to his.

First of all, my brother-in-law bought (well, built) his house in the late 1970s.
Median price of a home:

January 1979 – $60,000

February 2008 – $245,500

Median household income in 2007 dollars:

1979- $46,066

2007- $50,233

Hmmm…..

$60,000 mortgage for 15 years at 10% = $644.76 month

245,500 mortgage, same terms = $2836.18 month

Yikes.

245,500 mortgage for 30 years at 5% = $1317.90 month

Gee, I don’t know why people all over the U.S. are losing their homes, do you?

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