Overland Park KS Homes for sale & Johnson County Real Estate Blog: How can that $200,000 house really be $131,000 cheaper?

How can that $200,000 house really be $131,000 cheaper?

I will need to file this post under missed opportunities or I am not smart enough to get it. The real estate market in Kansas City peaked in 2006, August 2006 to be exact. Do you want to know what the average mortgage interest rate was in 2006? It was 6.41%, now let me equate this to how you can buy the same $200,000 house that you would have bought in 2006 for $131,000 less today.

$200,000 @ 6.41% = $1068 per month for principal and interest

$200,000 @ 4.22% = $703 per month principal and interest

You save $365 per month $365 x 12 months = $4380 per year

Based on a 30 year mortgage $4380 x 30 = $131,400

By buying a house today at 4.22% vs 6.41% you save

$131,400

Still waiting? 

 

 Mike Russell is a REALTOR with Keller Williams Realty. Mike specializes in Johnson County Kansas Homes and Real Estate for sale. Mike is a tech savvy realtor with over 17 years experience. Did you enjoy Mike's Blog? Feel free to subscribe or join Mike on his Social Network to stay up to date on Overland Park, Olathe, Leawood, Lenexa, Shawnee and all of Johnson Counties real estate news and more...

Mike Russell & Associates can be reached at 913-266-5828 or MRussell@KW.com  or www.SearchjocoHomes.com

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Comment balloon 2 commentsMike Russell • October 22 2010 04:46PM

Comments

Straight and to the point!

Posted by Cindy Jones, Pentagon, Fort Belvoir & Quantico Real Estate News (Integrity Real Estate Group) about 8 years ago

Cindy,

 

Buyers are so la-di-da about interest rates I needed to put it into perspective.

Posted by Mike Russell, Overland Park Kansas Real Estate (Mike Russell & Associates) about 8 years ago

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