96
PSA, you will actually pay $1M for your $500k house at today's rates (lemmy.world)
submitted 1 year ago by to c/personalfinance@lemmy.ml
53 comments fedilink hide all child comments
 

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

you are viewing a single comment's thread
view the rest of the comments
[–] 2 points 1 year ago (2 children)

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

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 2 child comments
    •
  • [–] 2 points 1 year 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
  • permalink
  • fedilink
  • source
  • parent