Uncle Sam is on your side when you purchase a house. 1986 version.

By
Real Estate Agent with RE/MAX Advantage

Most of you can't remember interest at the low rate of 12.5%.  Let's review this ad placed in a Homes for Living magazine in 1986.

Uncle Sam is on your side

Let's figure.  A $54,000 loan today at 5% would give you a payment of $289.88.  That's quite a savings.

For the payment of $562.82 you could purchase a $104,843 loan! 

And that's about what a $54,000 house would cost now! 

And the interest rates climbed on and on up!  By the end of the 80's they were around 17% or more. 

Let's figure.  A $54000 loan at 17% would be $769.86.  YIKES!!!

I'm tired and don't want to play this game anymore!  But aren't we pretty fortunate today to have such low interest rates?

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Wanda Thomas 07/07/2010 09:52 PM
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Teresa Albarella, SFR (Re/Max Advantage Realty - Spring Hill, FL

We sure are fortunate, Barbara.  The deck is certainly stacked on the buyer's side these days.  Great Post!  I see you're with Re/Max Advantage ~ so am I but in Florida.  Hope your week has a great finish

Jul 07, 2010 09:49 PM #1
Rainmaker
731,830
Barbara S. Duncan
RE/MAX Advantage - Searcy, AR
CRS, GRI, e-PRO, Searcy AR

Teresa, thanks for comment.  I started real estate in 1979 and kept all these old books.  We had no MLS so we gathered info and held onto it.  I also liked the vivid pictures that they had in the books as ads.  Who'd have dreamed they'd become blog fodder?

Jul 08, 2010 08:07 AM #2
Rainmaker
341,459
Elizabeth Bolton
RE/MAX Destiny Real Estate Cambridge, MA - Cambridge, MA
Cambridge MA Realtor

Hi Barbara ~ Excellent reminder! So many people have become ridiculously complacent about these amazingly low interest rates.

Liz

Jul 08, 2010 10:28 PM #3
Rainmaker
1,184,429
Steven L. Smith
King of the House Home Inspection, Inc - Bellingham, WA
Bellingham WA Home Inspector

Godmother,

I salute your amazing skills of methametics. I am standing behind this post.

Godson Nutsy

Jul 08, 2010 11:17 PM #4
Rainmaker
164,900
Kate Ford
Get-Your-Best-Mortgage-Rate.com - San Diego, CA
Ask Kate a mortgage question...

Barbara, I remember the adjustables with caps in the high teens and into the 20's.

And tell your godson to get off meth or I will stand ON him.

Jul 09, 2010 03:27 PM #5
Rainmaker
642,556
James Quarello
JRV Home Inspection Services, LLC - Wallingford, CT
Connecticut Home Inspector

A good number of first time buyers were much to young or may not have even been born yet to remember interest rates that high. It's hard to make folks realize how good things are now for buying a home, especially when the media is telling everyone the economy is bad.

Jul 11, 2010 08:59 AM #6
Rainmaker
731,830
Barbara S. Duncan
RE/MAX Advantage - Searcy, AR
CRS, GRI, e-PRO, Searcy AR

Elizabeth, you're right.  I remember an ex-banker real estate guy saying in the 80's that we'd have 7% interest before too long.  I looked at him like he was nuts.  Unfortunately, he has died and didn't see these under 5% rates.

Nutsy, I did that math so good, didn't I.  But as you can see with superious branes like me and you have I got a little tired.  My battry run down and I had to quit.

Kate, the adjustable helped one guy.  His interest rate went down with no money spent.  Others with the fixed rates were refinancing like crazy.  And my godson does not do meth, only math.

James, you're too young to remember them too.  LOL   Thanks for stopping by.

Jul 11, 2010 09:18 AM #7
Rainmaker
164,900
Kate Ford
Get-Your-Best-Mortgage-Rate.com - San Diego, CA
Ask Kate a mortgage question...

Well, Ms Barbara, then he doesn't spell very well. Couldn't you help out with that being a teacher AND the godmama.

Jul 11, 2010 06:45 PM #8
Rainmaker
731,830
Barbara S. Duncan
RE/MAX Advantage - Searcy, AR
CRS, GRI, e-PRO, Searcy AR

Kate, it was just a minor typing error.  His little fingers and his active mind sometime work so fast that he makes a tiny mistake.  Don't hold it against him.

Jul 11, 2010 09:07 PM #9
Rainmaker
1,184,429
Steven L. Smith
King of the House Home Inspection, Inc - Bellingham, WA
Bellingham WA Home Inspector

Barbara,

The one thing we forget about sometimes, even with interest low, is how much the payment might be compared to years back. When I bought my house in late 70's the interest rate was up around nine percent. The house was 27,500. payment was around 700 a month. Yet, even at low interest rates, if the place is valued up around 300K today, then that payment is still way higher for young folks low interest or not. Even with prices going down some here, it is not back to 27,500.

Jul 15, 2010 11:04 AM #10
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Barbara S. Duncan

CRS, GRI, e-PRO, Searcy AR
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