Mortgage rates have never been lower — but they most certainly have been higher!
This latest infographic takes mortgage loan rates back in time from the last decade, to the 90s and even back to the 80s! It turns out, you could have spent a lot more on your mortgage loan payments in the past than you could or would today.
We thought the best way to understand the savings that today’s mortgage loan interest rates brings is by comparing present day costs with the past’s.
Do you remember when Kelly Clarkson won American Idol Season One? It was in September of 2002, and 30-year home loan interest rates averaged 6.09 percent. This means that after 30 years, you would have paid a total of $653,776.93 on a $300,000 mortgage loan. That’s the equivalent of 43 Kawasaki Ultra 300X Jet Skis!
On August 6, 1991, the World Wide Web was first publicized. Interest rates stood at 9.25 percent. Your monthly payment would have $2,468.03 on a $300,000 mortgage loan. That could have bought you one first class plane ticket to Hawaii — every month!
On June 11, 1982, the film “E.T.” was released in theatres. Interest rates were a whopping 16.70 percent. Your monthly payment would have been $3,503.36. That could have bought you three-and-a-half pizzas with caviar and lobster toppings from Nino’s Restaurant in NYC.
Let’s come back to the future though, where mortgage rate trends continue to hover near historic low levels.
Scroll down to see the rest of the data for our “Back to the Future: The Cost of Mortgage Rates Past and Present” infographic.
Infographic created by loans.org