The real estate market crash of 2009 created a wake of chaos. People were laid off from their jobs and couldn’t afford their mortgages, which were now underwater. Interest rates decreased to help stabilize the market. They rose, then plummeted again in 2021, post-pandemic, to help stimulate borrowing.
That was a great time to buy a house. Let’s say you were able to purchase a $750,000 home with a 20% down payment of $150,000 and an interest rate of 3.885% for a 30-year loan. Your monthly payment would run you $2,825 a month, not including taxes, insurance and other fees. That same loan with a 6.885% interest rate would cost you $3,946.
