In 1989, you would pay right around $1,000/month for the median home. In today’s dollar value, that is just over $2000/month.
Reality is, today people are not paying $2000/month (which would have been keeping up with inflation). Because interest rates have dropped and new home prices have also dropped so substantially, a new home will $800 less/ month than what you would expect if you follow inflation. ...
Is it possible for people that owe more on their house than its worth, and have negative equity to refinance their homes? It is, it’s kind of difficult right now but it may be more possible in the near future. The nice thing about this is that allowing people who are underwater to refinance at the all time low interest rate can make a significant impact to reduce future foreclosures. The people most likely to...