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16.5% 30-year fixed FHA mortgage
Old 03-14-2012, 05:07 PM   #1
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16.5% 30-year fixed FHA mortgage

DW and I had one in 1982. As young marrieds, we just insisted on living the "American Dream". (No, I am not Dusty Rhodes...) I believe the amount financed was $32K or so.

Who's had a bigger mortgage interest rate?
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Old 03-14-2012, 05:12 PM   #2
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Mine was, IIRC, a little higher. Same time frame, but I got an adjustable, not fixed. The rate dropped like a rock, and that payment got smaller and smaller each month. Worked out pretty well.

-ERD50
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Old 03-14-2012, 05:23 PM   #3
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My wife and I had one at about that rate. We call it the "Jimmy Carter mortgage" to this day. It was a 30 year, so we suffered for a while, refied as soon as we could.

I some times hear people talking these days, like 4.25% is a huge slap in the face, and they are waiting for better; you tell them the 16% story, they look at you like you're nuts.
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Old 03-14-2012, 05:25 PM   #4
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We had a 13% mortgage when we bought our first home in 1984. Now 3.375%.
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Old 03-14-2012, 05:29 PM   #5
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My first home was a condo I bought in 1989 when I was 23. The rate? A cool 11%.

I refi'd twice so that by 1994 I was "only" paying 6.625% on it on a 15-year amortization.
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Old 03-14-2012, 05:31 PM   #6
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Been there had that. My first home in 1982 with Ms G bought $60K lived in it for 8 years sold $90K. I refinanced a few years later maybe in 1985 for 9%.
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Old 03-14-2012, 05:53 PM   #7
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While we waited for our first house to get done in 1981 the rates kept climbing and climbing and by the time we closed at the end of August we were at 18 1/2 %. I do recall that an FHA subsidy was involved which we paid back in 1984 when we sold the house.
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Old 03-14-2012, 06:15 PM   #8
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bought my first place in '85 with a 12.75% loan. Even with steady employment, a salary that covered the loan, zero debt, and a 10% down payment, I was made to find a co-signer.

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Old 03-14-2012, 06:34 PM   #9
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Bought our first home in 1980 and had a rate of 10% thru a relative. (rates at the cu were around 12%)
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Old 03-14-2012, 07:01 PM   #10
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my first was a 15.5% 30 year VA loan in 1982 for $44k. Refinanced much later for 15 year 9.5% loan. I thought the 15.5% rate was normal and no one told me differently. Ah! Youth!
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Old 03-14-2012, 08:06 PM   #11
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My first mortgage was in late 1978. It was a $45,000 30 yr VA loan at 12%. Times do change.
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Old 03-14-2012, 08:35 PM   #12
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Quote:
Originally Posted by LRDave
DW and I had one in 1982. As young marrieds, we just insisted on living the "American Dream". (No, I am not Dusty Rhodes...) I believe the amount financed was $32K or so.

Who's had a bigger mortgage interest rate?
Back in 81-82 I had a rate on $51k, started at 15.75, let it float, went to 23,9%!! Had to write the bank to inform them that I would send $1000/mo, but keep $200 of take home for feeding 3 young children, auto, heat & light.
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Old 03-14-2012, 09:14 PM   #13
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1988 We bought down to 10 1/2%, $40,000, 10% down and we qualified for a 20% Mortgage Credit Certificate because we were a couple of poor 21 yr olds. I loved that MCC! Allowed a person to deduct the mortgage interest AND take 20% of the interest paid and apply it as a credit! When I refinanced in 1998, a few years after my divorce, to 7% I got to keep the MCC.
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Old 03-14-2012, 09:18 PM   #14
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I got transfered from a plant in Pittsburgh to an Ohio plant in 1980 and ended up buying a brand new house from the builder who was doing the financing. Our mortgage was 8.25%. Kind of low for the time. A friend of mine also got transfered in at the same time from California and got a mortgage for 16%. He thought I robbed the bank. Things were goofy back then. Yeah, Jimmy Carter era. Gas lines were just coming to an end.
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Old 03-14-2012, 09:19 PM   #15
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I think I got a CD in 81 or 82 that paid almost 18%. In 84 we bought a house with a 12% no money down VA loan. Refinanced that in 87 to a 15 year at 8%. It was a big deal to get a rate locked in back then. The numbers seem unreal today.
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Old 03-14-2012, 09:31 PM   #16
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Before I went back to law school I worked for a finance company that offered first mortgages at 19% and second mortgages at 26% (this was in New Zealand in 1987). There was no shortage people queuing up to apply for them....and a couple of years later when the local economy went into recession there was no shortage of over leveraged people having their homes sold out from under them.
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Old 03-15-2012, 07:50 AM   #17
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IIRC my high was around 10.5%. It used to be pretty easy to figure out what it would cost to buy various houses --- divide by ten for a yearly guestimate.
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Old 03-15-2012, 08:02 AM   #18
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I lived in Austin, TX starting in 1981. A friend of mine bought a home (still lives there, been paid off a long time now) for $52k. His mortgage rate at the time was 17%. I didn't buy for a few years, but when I finally did, I did a VA loan at 9 1/2%. That's the highest rate I've paid. The lowest so far was 6 1/2. Currently, we're renting, 2 places to be exact, but expect to be looking to buy pretty soon. I hope to get one of the current low mortgage rates.
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