This might be duh for some people, but if you’re like me and considering a mortgage; at today’s rates in the US at around 5-6%, over 30yr mortgage you will pay about same in interest as you will for your house price.

Your $500k house will cost you around $1M total over thirty years.

I was surprised.

https://m.mortgagecalculator.org/?q=A1Nzy-8KX

  • corsicanguppy@lemmy.caEnglish
    2·
    8 hours ago

    In 1983 it was 17%.

    A high interest rate of one year isn’t going to do much over the course of 30 years.

    On error: 1981 was the high point.

    one year isn’t going to do much

    One year is a short mortgage. Here’s 32 years where the prime rate’s been almost consistently on the hard side of 6. Your parents had excellent jobs before the '80s, but it wasn’t all rosy.

    year bank rate prime lending rate
    1969 7.46 7.96
    1970 7.12 8.17
    1971 5.19 6.48
    1972 4.75 6
    1973 6.12 7.65
    1974 8.5 10.75
    1975 8.5 9.42
    1976 9.29 10.04
    1977 7.71 8.5
    1978 8.98 9.69
    1979 12.1 12.9
    1980 12.89 14.25
    1981 17.93 19.29
    1982 13.96 15.81
    1983 9.55 11.17
    1984 11.31 12.06
    1985 9.65 10.58
    1986 9.21 10.52
    1987 8.4 9.52
    1988 9.69 10.83
    1989 12.29 13.33
    1990 13.04 14.06
    1991 9.03 9.94
    1992 6.78 7.48
    1993 5.09 5.94
    1994 5.77 6.88
    1995 7.31 8.65
    1996 4.53 6.06
    1997 3.52 4.96
    1998 5.1 6.6
    1999 4.92 6.44
    2000 5.77 7.27
    2001 4.31 5.81