This chart shows how affordable our homes are in 2010. The interest makes a huge difference too. Read the payment comparison below the chart.
The huge difference for home owners and investors who are going to mortgage their home investment is the payment. In 1996 the payment would have been $984. In 2010 the payment would be $648 for a $130,000 mortgage. That is 34% more in 1996 than todays payment would be. If you qualify for $984 you can purchase a home worth $190,000 in 2010.
The prices are low and the interest rates are low.
The difference for investors: (expenses not included)
1996 $130,000 Home rents for $ 900. Payment is $984. Your monthly cashflow -$84
2010 $130,000 Home rents for $1000. Payment is $648. Your monthly cashflow +$452.
What a difference interest rates make!
Thank you Nevada Title for the chart.
