A $400,000 house today would have cost $642,650 in September of 2006, a difference of $242,650.
A 30 year mortgage today is 4.13% and in September of 2006 it would have been 6.41%. The monthly payment today would be $1,939.76 and in September of 2006 it would have been $4,024.02, a difference of $2,084.26 per month.
Over the term of the loan, the total savings for the house purchased today would be $750,333! If today’s buyer took out a 30 year loan at current rates, but made the same payments as the buyer in 2006 ($4,024.02), the loan would be paid off in 10 years and 2 months…. the buyer in 2006 would still have 15 years of payments.
What a difference 5 years makes!