re: Any OT'ers bought a home in the 1980's?

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Great, now mortgages are going the way of vehicle financing.
45 and 60 year home loans in the near future

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Not a good comparison. Historically homes are an appreciating asset. Cars, not so much.

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He's telling you the way it was. I remember my parents buying house in the early 80s and they were very pleased to get a loan at 13%.


Now I know the reason he had to work 3 jobs. That's insane.

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Well at least brand new vehicles didn't cost even as much as cheaper houses. I have never actually bought a brand new vehicle and probably never will. It just doesn't make sense to.

If he is exaggerating it isn’t by much.

Interest rates were through the goddamn roof from the Carter years until probably the late Clinton years.

It got into the 20's for a few months when Jimmy Carter was president. 8 has always been kind of the average. We have very low rates even now, but not for much longer.

My in-laws sold a house in the late 70s and provided financing to the buyer at a rate of 24%.

My parents bought their house in 1985 and I believe the rate was 'a deal' at 9.95%. Funny that it was a 15 year note... and they expect to pay the house off next year But the house is very well kept, and for that I'm thankful.

Your father in law is correct. Interest rates were insane. I bought my first home in 1981. There was a bond program for first time home buyers where interest rates were as low as 12%. And we were glad to get it! Long lines of would be borrowers would camp out in front of the mortgage company in an attempt to get such a loan. Because when the money ran out then there wasn’t any more money to loan under that program.

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My father in law said he paid 17% interest on his home he built for $38K back in 1984. Is he full of shite or is that about correct?

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Your father in law is correct. It was as high as 19% give or take a point. Good times.

I think Pop said he paid in the 12s for their place. That would've been 1983.

Along those lines I distinctively remember a Chevy lot in my town advertising a 9.9% interest rate on new vehicles about that time and hearing people say "whoa under 10%, that's a deal" type stuff.