A.I.M. Users Bulletin Board

[ls7550]

Hi Steve

Our fixed 30 yr mortgage interest rate in 1984 when we moved to Dallas was 15.25% (That is not a typo).

Brings back memories. Mine was a relatively new mortgage back then (mid 20's), but variable rate that also peaked at around 17%. Had to move out and rent it for a while - back with parents and was working every bit of overtime I could. 32 hours straight in some cases. Had some (little) savings that were earning 12%, but that were being taxed 30% (tax exempt wasn't a option back then). And such small amounts to be in effect insignificant.

Fixing for 30 years however ... ouch! We at least had the benefit of rising house prices after interest rates started to decline again along with lower cost of servicing the (variable rate) mortgage. Was a 25 year term interest only mortgage, but those high rates had set us into a lifestyle that enabled us to pay it off much quicker (10 years and it was cleared) such that it turned out as a great 'investment'. For others however that had to default I guess much less so.